Salt Trading (XNEP:STC) Interest Coverage : 1.16 (As of Jul. 2023)

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What is Salt Trading 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. Salt Trading's Operating Income for the six months ended in Jul. 2023 was NPR525 Mil. Salt Trading's Interest Expense for the six months ended in Jul. 2023 was NPR-453 Mil. Salt Trading's interest coverage for the quarter that ended in Jul. 2023 was 1.16. The higher the ratio, the stronger the company's financial strength is.

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

XNEP:STC' s Interest Coverage Range Over the Past 10 Years
Min: 0.93 Med: 1.16 Max: 1.2
Current: 1.16

XNEP:STC's Interest Coverage is ranked worse than
91.37% of 1472 companies
in the Consumer Packaged Goods industry
Industry Median: 8.77 vs XNEP:STC: 1.16

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

Salt Trading Interest Coverage Historical Data

The historical data trend for Salt Trading'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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Salt Trading Interest Coverage Chart

Salt Trading Annual Data

Trend

Jul19

Jul20

Jul21

Jul22

Jul23

Interest Coverage

0.93

1.02

1.17

1.20

1.16

Salt Trading Semi-Annual Data
	Jul19	Jul20	Jul21	Jul22	Jul23
Interest Coverage	0.93	1.02	1.17	1.20	1.16

Competitive Comparison of Salt Trading's Interest Coverage

For the Packaged Foods subindustry, Salt Trading'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.

Salt Trading's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Salt Trading's Interest Coverage distribution charts can be found below:

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

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Salt Trading 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.

Salt Trading'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, Salt Trading's Interest Expense was NPR-453 Mil. Its Operating Income was NPR525 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR83 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jul. 2023 )	/	Interest Expense (A: Jul. 2023 )
	=	-1	*	524.864	/	-452.981
	=	1.16

Salt Trading's Interest Coverage for the quarter that ended in Jul. 2023 is calculated as

Here, for the six months ended in Jul. 2023, Salt Trading's Interest Expense was NPR-453 Mil. Its Operating Income was NPR525 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR83 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jul. 2023 )	/	Interest Expense (Q: Jul. 2023 )
	=	-1	*	524.864	/	-452.981
	=	1.16

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

Salt Trading (XNEP:STC) 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 .

Salt Trading Interest Coverage Related Terms

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

Salt Trading Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Salt Trading Corp (XNEP:STC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Kalimati, P.O.Box: 483, Kathmandu, NPL

Website

http://www.stcnepal.com

Salt Trading Corp is engaged in the trading and distribution of salt and daily consumer goods in Nepal. The main commodities in which the company deals are food products and agricultural products, construction materials, Fuel and Lubricants, and other materials. The company earns maximum revenue from Food and agricultural items. It has business segments namely Fertilizer Sales, Salt Sales, Sugar sales, and others.