Solara Active Pharma Sciences (NSE:SOLARAPP) Interest Coverage : 1.25 (As of Dec. 2024)

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What is Solara Active Pharma Sciences 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. Solara Active Pharma Sciences's Operating Income for the three months ended in Dec. 2024 was ₹331 Mil. Solara Active Pharma Sciences's Interest Expense for the three months ended in Dec. 2024 was ₹-265 Mil. Solara Active Pharma Sciences's interest coverage for the quarter that ended in Dec. 2024 was 1.25. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Solara Active Pharma Sciences Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Solara Active Pharma Sciences's Interest Coverage or its related term are showing as below:

NSE:SOLARAPP' s Interest Coverage Range Over the Past 10 Years
Min: 0.4 Med: 2.06 Max: 3.52
Current: 0.65

NSE:SOLARAPP's Interest Coverage is ranked worse than
94.43% of 664 companies
in the Drug Manufacturers industry
Industry Median: 11.775 vs NSE:SOLARAPP: 0.65

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

Solara Active Pharma Sciences Interest Coverage Historical Data

The historical data trend for Solara Active Pharma Sciences'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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Solara Active Pharma Sciences Interest Coverage Chart

Solara Active Pharma Sciences Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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2.50

3.52

0.40

Solara Active Pharma Sciences Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Interest Coverage	Get a 7-Day Free Trial															-	-	0.55	1.27	1.25

Competitive Comparison of Solara Active Pharma Sciences's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Solara Active Pharma Sciences'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.

Solara Active Pharma Sciences's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Solara Active Pharma Sciences's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Solara Active Pharma Sciences's Interest Coverage falls into.

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Solara Active Pharma Sciences 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.

Solara Active Pharma Sciences'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, Solara Active Pharma Sciences's Interest Expense was ₹-985 Mil. Its Operating Income was ₹-1,981 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1,174 Mil.

Solara Active Pharma Sciences did not have earnings to cover the interest expense.

Solara Active Pharma Sciences's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Solara Active Pharma Sciences's Interest Expense was ₹-265 Mil. Its Operating Income was ₹331 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	331.4	/	-265.4
	=	1.25

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

Solara Active Pharma Sciences (NSE:SOLARAPP) 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 .

Solara Active Pharma Sciences Interest Coverage Related Terms

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

Solara Active Pharma Sciences Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Solara Active Pharma Sciences Ltd (NSE:SOLARAPP) » Definitions » Interest Coverage

Traded in Other Exchanges

890202:India SOLARA:India 541540:India

Address

27, Vandaloor Kelambakkam Road, 2nd Floor. Admin Block, Melakottaiyur (Post), Keelakottaiyur Village, Chennai, TN, IND, 600 127

Website

https://www.solara.co.in

Solara Active Pharma Sciences Ltd is engaged in Active Pharmaceutical Ingredients manufacturer (API) in India. It manufactures and develops APIs and offers services, including CRAMS and contract manufacturing for APIs. The company offers products and services, such as Anaesthetic, Analgesics, Antiviral, Retinod, Anti-emetic, Antimalarial, Diuretic, Muscle relaxant, Antiallergics, Antihypertensive, Calcimimetic agent, Anti-seizure, Antigout, Cardiovascular, Anti-infective, Cough suppressant and others. It also offers contract services including contract development and manufacturing, analytical services. The group has a business presence in the Asia Pacific, Europe, North America, South America, and other places, of which the majority of income is generated from the Asia Pacific countries.

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