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Shivam Cements (XNEP:SHIVM) Interest Coverage : 121.43 (As of Apr. 2025)


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What is Shivam Cements 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. Shivam Cements's Operating Income for the three months ended in Apr. 2025 was NPR398 Mil. Shivam Cements's Interest Expense for the three months ended in Apr. 2025 was NPR-3 Mil. Shivam Cements's interest coverage for the quarter that ended in Apr. 2025 was 121.43. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Shivam Cements's Interest Coverage or its related term are showing as below:

XNEP:SHIVM' s Interest Coverage Range Over the Past 10 Years
Min: 3.01   Med: 6.74   Max: 63.63
Current: 4.73


XNEP:SHIVM's Interest Coverage is ranked worse than
57.28% of 302 companies
in the Building Materials industry
Industry Median: 6.195 vs XNEP:SHIVM: 4.73

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


Shivam Cements Interest Coverage Historical Data

The historical data trend for Shivam Cements'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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Shivam Cements Interest Coverage Chart

Shivam Cements Annual Data
Trend Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Interest Coverage
Get a 7-Day Free Trial 10.19 63.63 10.35 4.02 3.01

Shivam Cements Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 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 9.58 10.77 - 28.19 121.43

Competitive Comparison of Shivam Cements's Interest Coverage

For the Building Materials subindustry, Shivam Cements'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.


Shivam Cements's Interest Coverage Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Shivam Cements's Interest Coverage distribution charts can be found below:

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


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Shivam Cements 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.

Shivam Cements's Interest Coverage for the fiscal year that ended in Jul. 2024 is calculated as

Here, for the fiscal year that ended in Jul. 2024, Shivam Cements's Interest Expense was NPR-50 Mil. Its Operating Income was NPR150 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR8 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2024 )/Interest Expense (A: Jul. 2024 )
=-1*149.583/-49.697
=3.01

Shivam Cements's Interest Coverage for the quarter that ended in Apr. 2025 is calculated as

Here, for the three months ended in Apr. 2025, Shivam Cements's Interest Expense was NPR-3 Mil. Its Operating Income was NPR398 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR1 Mil.

Interest Coverage=-1* Operating Income (Q: Apr. 2025 )/Interest Expense (Q: Apr. 2025 )
=-1*398.422/-3.281
=121.43

* 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.


Shivam Cements  (XNEP:SHIVM) 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 .


Shivam Cements Interest Coverage Related Terms

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


Shivam Cements Business Description

Traded in Other Exchanges
N/A
Address
Siddhartha Insurance Bhawan, 2nd Floor, GPO Box 13478, Anamnagar, Kathmandu, NPL
Shivam Cements Ltd is a Nepal based company engaged in manufacturing of cement and clinker from its self owned limestone quarries. The main product of the company include the Ordinary Portland Cement. Its products include OPC cement 43 Grade and OPC cement 53 grade.

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