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G.Barekat Pharm (XTEH:BRKT1) Interest Coverage : 1.86 (As of Mar. 2017)


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What is G.Barekat Pharm 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. G.Barekat Pharm's Operating Income for the six months ended in Mar. 2017 was IRR3,266,692 Mil. G.Barekat Pharm's Interest Expense for the six months ended in Mar. 2017 was IRR-1,758,622 Mil. G.Barekat Pharm's interest coverage for the quarter that ended in Mar. 2017 was 1.86. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for G.Barekat Pharm's Interest Coverage or its related term are showing as below:


XTEH:BRKT1's Interest Coverage is not ranked *
in the Biotechnology industry.
Industry Median: 144.99
* Ranked among companies with meaningful Interest Coverage only.

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


G.Barekat Pharm Interest Coverage Historical Data

The historical data trend for G.Barekat Pharm'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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G.Barekat Pharm Interest Coverage Chart

G.Barekat Pharm Annual Data
Trend Mar16 Mar17
Interest Coverage
2.12 1.86

G.Barekat Pharm Semi-Annual Data
Mar16 Mar17
Interest Coverage 2.12 1.86

Competitive Comparison of G.Barekat Pharm's Interest Coverage

For the Biotechnology subindustry, G.Barekat Pharm'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.


G.Barekat Pharm's Interest Coverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, G.Barekat Pharm's Interest Coverage distribution charts can be found below:

* The bar in red indicates where G.Barekat Pharm's Interest Coverage falls into.



G.Barekat Pharm 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.

G.Barekat Pharm's Interest Coverage for the fiscal year that ended in Mar. 2017 is calculated as

Here, for the fiscal year that ended in Mar. 2017, G.Barekat Pharm's Interest Expense was IRR-1,758,622 Mil. Its Operating Income was IRR3,266,692 Mil. And its Long-Term Debt & Capital Lease Obligation was IRR255,897 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2017 )/Interest Expense (A: Mar. 2017 )
=-1*3266692/-1758622
=1.86

G.Barekat Pharm's Interest Coverage for the quarter that ended in Mar. 2017 is calculated as

Here, for the six months ended in Mar. 2017, G.Barekat Pharm's Interest Expense was IRR-1,758,622 Mil. Its Operating Income was IRR3,266,692 Mil. And its Long-Term Debt & Capital Lease Obligation was IRR255,897 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2017 )/Interest Expense (Q: Mar. 2017 )
=-1*3266692/-1758622
=1.86

* 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.


G.Barekat Pharm  (XTEH:BRKT1) 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 .


G.Barekat Pharm Interest Coverage Related Terms

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G.Barekat Pharm (XTEH:BRKT1) Business Description

Traded in Other Exchanges
N/A
Address
No. 11, 5th Alley, Bucharest Avenue, Argentina Square, Tehran, IRN
G.Barekat Pharm focuses on the introduction of new pharmaceutical fields such as biotechnology, drug delivery which includes nanotechnology, slow release drugs, and new technologies for health, development of cellular molecular industries like tuberculosis, gene therapy, immunotherapy, and tissue technology.

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