Life Insurance Nepal (XNEP:LICN) Interest Coverage : 1.10 (As of Apr. 2024)

Life Insurance Nepal Interest Coverage Chart

Life Insurance Nepal Annual Data
	Trend	Jul11	Jul12	Jul13	Jul14	Jul15	Jul16	Jul17	Jul18	Jul19	Jul20
Interest Coverage		Get a 7-Day Free Trial					5.82	391.85	-	3.27	3.46

Life Insurance Nepal Quarterly Data
	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Oct21	Jan22	Apr22	Oct22	Jan23	Apr23	Oct23	Jan24	Apr24
Interest Coverage	Get a 7-Day Free Trial															-	0.97	-	1.12	1.10

Competitive Comparison of Life Insurance Nepal's Interest Coverage

For the Insurance - Life subindustry, Life Insurance Nepal'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.

Life Insurance Nepal's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Life Insurance Nepal's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Life Insurance Nepal's Interest Coverage falls into.

Life Insurance Nepal 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 EBIT is positive, then

Else if Interest Expense is negative and EBIT is negative, then

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

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

Life Insurance Nepal's Interest Coverage for the fiscal year that ended in Jul. 2020 is calculated as

Here, for the fiscal year that ended in Jul. 2020, Life Insurance Nepal's Interest Expense was NPR-4,426 Mil. Its EBIT was NPR15,332 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR0 Mil.

Life Insurance Nepal's Interest Coverage for the quarter that ended in Apr. 2024 is calculated as

Here, for the three months ended in Apr. 2024, Life Insurance Nepal's Interest Expense was NPR-577 Mil. Its EBIT was NPR635 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR0 Mil.

* 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.

Life Insurance Nepal  (XNEP:LICN) 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 .

Life Insurance Nepal Interest Coverage Related Terms

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Life Insurance Nepal (XNEP:LICN) Business Description