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Sadhav Shipping (NSE:SADHAV) Interest Coverage : 4.54 (As of Sep. 2024)


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What is Sadhav Shipping Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Sadhav Shipping's Operating Income for the six months ended in Sep. 2024 was ₹82.3 Mil. Sadhav Shipping's Interest Expense for the six months ended in Sep. 2024 was ₹-18.1 Mil. Sadhav Shipping's interest coverage for the quarter that ended in Sep. 2024 was 4.54. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sadhav Shipping's Interest Coverage or its related term are showing as below:

NSE:SADHAV' s Interest Coverage Range Over the Past 10 Years
Min: 2.75   Med: 3.24   Max: 4.77
Current: 4.77


NSE:SADHAV's Interest Coverage is ranked worse than
57.64% of 838 companies
in the Transportation industry
Industry Median: 6.05 vs NSE:SADHAV: 4.77

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Sadhav Shipping Interest Coverage Historical Data

The historical data trend for Sadhav Shipping's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Sadhav Shipping Interest Coverage Chart

Sadhav Shipping Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Interest Coverage
2.81 2.75 3.66 4.19

Sadhav Shipping Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24
Interest Coverage Get a 7-Day Free Trial N/A N/A 3.42 4.97 4.54

Competitive Comparison of Sadhav Shipping's Interest Coverage

For the Marine Shipping subindustry, Sadhav Shipping's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sadhav Shipping's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Sadhav Shipping's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sadhav Shipping's Interest Coverage falls into.


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Sadhav Shipping Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sadhav Shipping's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, Sadhav Shipping's Interest Expense was ₹-43.3 Mil. Its Operating Income was ₹181.3 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹583.7 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2024 )/Interest Expense (A: Mar. 2024 )
=-1*181.347/-43.295
=4.19

Sadhav Shipping's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the six months ended in Sep. 2024, Sadhav Shipping's Interest Expense was ₹-18.1 Mil. Its Operating Income was ₹82.3 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹974.5 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*82.348/-18.138
=4.54

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Sadhav Shipping  (NSE:SADHAV) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Sadhav Shipping Interest Coverage Related Terms

Thank you for viewing the detailed overview of Sadhav Shipping's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Sadhav Shipping Business Description

Traded in Other Exchanges
N/A
Address
New Link Road, Unit -618, 6th Floor, Laxmi Plaza, Building No. 9, Near Laxmi Industrial Estate, Andheri West, Mumbai, MH, IND, 400053
Sadhav Shipping Ltd owns and operates marine assets to service ports, coastal logistics, and other port maritime-related services. The company is mainly engaged in the business of owning & operating barges, tugs & vessels in addition to taking ship management for other owners. It owns and operates 22 vessels that includes 19 owned vessels and 3 chartered in vessels, in various sectors of maritime trade in India.

Sadhav Shipping Headlines

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