Tembo Global Industries (NSE:TEMBO) Interest Coverage : 3.35 (As of Sep. 2024)

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What is Tembo Global Industries 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. Tembo Global Industries's Operating Income for the three months ended in Sep. 2024 was ₹141 Mil. Tembo Global Industries's Interest Expense for the three months ended in Sep. 2024 was ₹-42 Mil. Tembo Global Industries's interest coverage for the quarter that ended in Sep. 2024 was 3.35. 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. Tembo Global Industries Ltd interest coverage is 3.62, which is low.

The historical rank and industry rank for Tembo Global Industries's Interest Coverage or its related term are showing as below:

NSE:TEMBO' s Interest Coverage Range Over the Past 10 Years
Min: 1.62 Med: 2.39 Max: 3.62
Current: 3.62

NSE:TEMBO's Interest Coverage is ranked worse than
79.82% of 2284 companies
in the Industrial Products industry
Industry Median: 15.855 vs NSE:TEMBO: 3.62

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

Tembo Global Industries Interest Coverage Historical Data

The historical data trend for Tembo Global Industries'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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Tembo Global Industries Interest Coverage Chart

Tembo Global Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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3.38

2.71

1.62

3.20

3.15

Tembo Global Industries Quarterly Data
	Mar14	Mar15	Mar16	Mar17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Jun21	Mar22	Jun22	Mar23	Jun23	Sep23	Mar24	Jun24	Sep24
Interest Coverage	Get a 7-Day Free Trial															3.62	10.21	N/A	4.22	3.35

Competitive Comparison of Tembo Global Industries's Interest Coverage

For the Metal Fabrication subindustry, Tembo Global Industries'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.

Tembo Global Industries's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Tembo Global Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tembo Global Industries's Interest Coverage falls into.

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Tembo Global Industries 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.

Tembo Global Industries'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, Tembo Global Industries's Interest Expense was ₹-52 Mil. Its Operating Income was ₹163 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹97 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	162.972	/	-51.752
	=	3.15

Tembo Global Industries's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Tembo Global Industries's Interest Expense was ₹-42 Mil. Its Operating Income was ₹141 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹296 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	140.76	/	-41.973
	=	3.35

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

Tembo Global Industries (NSE:TEMBO) 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 .

Tembo Global Industries Interest Coverage Related Terms

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

Tembo Global Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Tembo Global Industries Ltd (NSE:TEMBO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

S Central Road, Plot No. PAP-D - 146/147, TTC Industrial Estate, Opposite Balmer Lawrie Van Leer Co., MIDC, Turbhe, Sanpada Road, Navi Mumbai, MH, IND, 400705

Website

https://www.tembo.in

Tembo Global Industries Ltd manufactures and fabricates steel products for its application in Pipe Support Systems, HVAC Systems, Anti-vibration systems and Equipment for Industrial, Commercial, Utility, and OEM Installations. It also manufactures metal and base metal products like G. I. nuts, various types of bolts, clamps, hangers, bathroom pipes, fittings, bathroom accessories and sanitary wares. The company operates in two business segment viz, Manufacturing of Engineering Products and Trading of Fabric and Textile Products. The majority of revenue from operations is derived from the domestic market.

Tembo Global Industries Headlines

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