Shiv Aum Steels (NSE:SHIVAUM) Interest Coverage : 2.33 (As of Sep. 2024)

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What is Shiv Aum Steels 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. Shiv Aum Steels's Operating Income for the six months ended in Sep. 2024 was ₹87 Mil. Shiv Aum Steels's Interest Expense for the six months ended in Sep. 2024 was ₹-37 Mil. Shiv Aum Steels's interest coverage for the quarter that ended in Sep. 2024 was 2.33. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Shiv Aum Steels's Interest Coverage or its related term are showing as below:

NSE:SHIVAUM' s Interest Coverage Range Over the Past 10 Years
Min: 1.49 Med: 2.55 Max: 5.9
Current: 2.29

NSE:SHIVAUM's Interest Coverage is ranked worse than
68.61% of 446 companies
in the Steel industry
Industry Median: 5.195 vs NSE:SHIVAUM: 2.29

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

Shiv Aum Steels Interest Coverage Historical Data

The historical data trend for Shiv Aum Steels'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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Shiv Aum Steels Interest Coverage Chart

Shiv Aum Steels Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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2.14

2.36

5.90

4.90

3.07

Shiv Aum Steels Semi-Annual Data
	Mar17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
Interest Coverage	Get a 7-Day Free Trial										7.05	3.08	4.28	2.25	2.33

Competitive Comparison of Shiv Aum Steels's Interest Coverage

For the Steel subindustry, Shiv Aum Steels'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.

Shiv Aum Steels's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Shiv Aum Steels's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shiv Aum Steels's Interest Coverage falls into.

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Shiv Aum Steels 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.

Shiv Aum Steels'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, Shiv Aum Steels's Interest Expense was ₹-65 Mil. Its Operating Income was ₹200 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹90 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	199.641	/	-65.097
	=	3.07

Shiv Aum Steels's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the six months ended in Sep. 2024, Shiv Aum Steels's Interest Expense was ₹-37 Mil. Its Operating Income was ₹87 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹90 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	86.663	/	-37.204
	=	2.33

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

Shiv Aum Steels (NSE:SHIVAUM) 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 .

Shiv Aum Steels Interest Coverage Related Terms

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

Shiv Aum Steels Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Shiv Aum Steels Ltd (NSE:SHIVAUM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Western Express Way, A.K. Road, Office No. 515, The Summit Business Bay, Opposite PVR Cinemas, Andheri (East), Mumbai, MH, IND, 400093

Website

https://www.shivaumsteels.com

Shiv Aum Steels Ltd is engaged in trading mild steel products such as beams, angles, plates, channels, coils, and Thermo mechanically treated (TMT) bars. It operates as a trader, stockist, and distributor of steel products. The product offerings range from different types of Beams, Angles, Channels, TMT Bars, Rails, Sheets, Plates, and Coils including various sub-categories of the said products like I-beam, H-beam, L-shaped angles, T-shaped angles, C-channels and Sheets and Plates of varied thickness and dimensions. The company derives revenue from rendering of the engineering consultancy services.

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