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Electrovaya (TSX:ELVA) Interest Coverage : 7.18 (As of Sep. 2024)


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What is Electrovaya 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. Electrovaya's Operating Income for the three months ended in Sep. 2024 was C$0.96 Mil. Electrovaya's Interest Expense for the three months ended in Sep. 2024 was C$-0.13 Mil. Electrovaya's interest coverage for the quarter that ended in Sep. 2024 was 7.18. 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. Electrovaya Incs 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 Electrovaya's Interest Coverage or its related term are showing as below:

TSX:ELVA' s Interest Coverage Range Over the Past 10 Years
Min: 0.31   Med: 0.42   Max: 0.52
Current: 0.41


TSX:ELVA's Interest Coverage is ranked worse than
96.24% of 2259 companies
in the Industrial Products industry
Industry Median: 14.52 vs TSX:ELVA: 0.41

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


Electrovaya Interest Coverage Historical Data

The historical data trend for Electrovaya'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.

* Premium members only.

Electrovaya Interest Coverage Chart

Electrovaya Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 0.52 0.31

Electrovaya Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Mar24 Jun24 Sep24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.06 3.28 0.46 - 7.18

Competitive Comparison of Electrovaya's Interest Coverage

For the Electrical Equipment & Parts subindustry, Electrovaya'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.


Electrovaya's Interest Coverage Distribution in the Industrial Products Industry

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

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



Electrovaya 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.

Electrovaya's Interest Coverage for the fiscal year that ended in Sep. 2024 is calculated as

Here, for the fiscal year that ended in Sep. 2024, Electrovaya's Interest Expense was C$-3.21 Mil. Its Operating Income was C$0.99 Mil. And its Long-Term Debt & Capital Lease Obligation was C$0.00 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2024 )/Interest Expense (A: Sep. 2024 )
=-1*0.988/-3.205
=0.31

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

Here, for the three months ended in Sep. 2024, Electrovaya's Interest Expense was C$-0.13 Mil. Its Operating Income was C$0.96 Mil. And its Long-Term Debt & Capital Lease Obligation was C$0.00 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*0.962/-0.134
=7.18

* 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.


Electrovaya  (TSX:ELVA) 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 .


Electrovaya Interest Coverage Related Terms

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


Electrovaya Business Description

Traded in Other Exchanges
Address
6688 Kitimat Road, Mississauga, ON, CAN, L5N 1P8
Electrovaya Inc designs develop and manufacture proprietary lithium-ion batteries, battery systems, and battery-related products for energy storage, clean electric transportation and other specialized applications. It is a technology-focused company with extensive IP. The company generates revenue from the sale of batteries and battery systems. Business operations are segmented based on large format batteries and others. This technology offers enhanced safety and industry leading battery longevity. Geographically it earns key revenue from the United States.
Executives
Raj Dasgupta Senior Officer
Francis John Gibson Senior Officer
Alexander Mclean Director
Bejoy Das Gupta Director