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Nepal Doorsanchar Co (XNEP:NTC) Interest Coverage : 53.98 (As of Apr. 2025)


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What is Nepal Doorsanchar Co 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. Nepal Doorsanchar Co's Operating Income for the three months ended in Apr. 2025 was NPR1,927 Mil. Nepal Doorsanchar Co's Interest Expense for the three months ended in Apr. 2025 was NPR-36 Mil. Nepal Doorsanchar Co's interest coverage for the quarter that ended in Apr. 2025 was 53.98. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Nepal Doorsanchar Co's Interest Coverage or its related term are showing as below:

XNEP:NTC' s Interest Coverage Range Over the Past 10 Years
Min: 5.43   Med: 18.62   Max: 48.81
Current: 48.81


XNEP:NTC's Interest Coverage is ranked better than
87.41% of 294 companies
in the Telecommunication Services industry
Industry Median: 4.715 vs XNEP:NTC: 48.81

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


Nepal Doorsanchar Co Interest Coverage Historical Data

The historical data trend for Nepal Doorsanchar Co'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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Nepal Doorsanchar Co Interest Coverage Chart

Nepal Doorsanchar Co Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.02 5.43 7.04 9.67 9.44

Nepal Doorsanchar Co Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Oct24 Jan25 Apr25
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 23.69 0.61 64.06 32.12 53.98

Competitive Comparison of Nepal Doorsanchar Co's Interest Coverage

For the Telecom Services subindustry, Nepal Doorsanchar Co'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.


Nepal Doorsanchar Co's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Nepal Doorsanchar Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Nepal Doorsanchar Co's Interest Coverage falls into.


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Nepal Doorsanchar Co 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.

Nepal Doorsanchar Co's Interest Coverage for the fiscal year that ended in Jul. 2023 is calculated as

Here, for the fiscal year that ended in Jul. 2023, Nepal Doorsanchar Co's Interest Expense was NPR-473 Mil. Its Operating Income was NPR4,466 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR1,506 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2023 )/Interest Expense (A: Jul. 2023 )
=-1*4465.993/-473.323
=9.44

Nepal Doorsanchar Co's Interest Coverage for the quarter that ended in Apr. 2025 is calculated as

Here, for the three months ended in Apr. 2025, Nepal Doorsanchar Co's Interest Expense was NPR-36 Mil. Its Operating Income was NPR1,927 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR1,784 Mil.

Interest Coverage=-1* Operating Income (Q: Apr. 2025 )/Interest Expense (Q: Apr. 2025 )
=-1*1927.218/-35.704
=53.98

* 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.


Nepal Doorsanchar Co  (XNEP:NTC) 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 .


Nepal Doorsanchar Co Interest Coverage Related Terms

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Nepal Doorsanchar Co Business Description

Traded in Other Exchanges
N/A
Address
Bhadrakali Plaza, Doorsanchar Bhawan, Kathmandu, NPL
Nepal Doorsanchar Co Ltd is engaged in providing telecommunication services. The company's business segments are divided into Fixed Line Services, Wireless Services, Treasury, and Unallocated. The Wireless services segment includes the GSM and CDMA segments. These services cover voice and data telecom services provided through wireless technology (GSM /CDMA). Fixed Network includes all voice and data communication activities based on the fixed network and broadband technology. Treasury segment includes management of investment, cash and cash equivalent other than directly related to a reported segment. Non-operating expenses are included in the Unallocated segment. The majority of the revenue is generated from the Wireless segment.

Nepal Doorsanchar Co Headlines