Tanganda Tea Co (XZIM:TANGANDA) Interest Coverage : 0 (At Loss) (As of Mar. 2025)

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What is Tanganda Tea 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. Tanganda Tea Co's Operating Income for the six months ended in Mar. 2025 was ZWG-47.8 Mil. Tanganda Tea Co's Interest Expense for the six months ended in Mar. 2025 was ZWG-10.5 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

XZIM:TANGANDA's Interest Coverage is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 8.4
* 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.

Tanganda Tea Co Interest Coverage Historical Data

The historical data trend for Tanganda Tea 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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Tanganda Tea Co Interest Coverage Chart

Tanganda Tea Co Annual Data

Trend

Sep23

Sep24

Interest Coverage

2.08

Tanganda Tea Co Semi-Annual Data
	Mar23	Sep23	Mar24	Sep24	Mar25
Interest Coverage	2.58	-	1.28	2.57	-

Competitive Comparison of Tanganda Tea Co's Interest Coverage

For the Farm Products subindustry, Tanganda Tea 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.

Tanganda Tea Co's Interest Coverage Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Tanganda Tea Co's Interest Coverage falls into.

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Tanganda Tea 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.

Tanganda Tea Co's Interest Coverage for the fiscal year that ended in Sep. 2024 is calculated as

Here, for the fiscal year that ended in Sep. 2024, Tanganda Tea Co's Interest Expense was ZWG-21.0 Mil. Its Operating Income was ZWG43.6 Mil. And its Long-Term Debt & Capital Lease Obligation was ZWG79.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2024 )	/	Interest Expense (A: Sep. 2024 )
	=	-1	*	43.568	/	-20.988
	=	2.08

Tanganda Tea Co's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the six months ended in Mar. 2025, Tanganda Tea Co's Interest Expense was ZWG-10.5 Mil. Its Operating Income was ZWG-47.8 Mil. And its Long-Term Debt & Capital Lease Obligation was ZWG40.4 Mil.

Tanganda Tea Co did not have earnings to cover the interest expense.

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

Tanganda Tea Co (XZIM:TANGANDA) 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 .

Tanganda Tea Co Interest Coverage Related Terms

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Tanganda Tea Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Tanganda Tea Co Ltd (XZIM:TANGANDA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

15 Vumba Road, Mutare, ZWE

Website

https://www.tangandatea.com

Tanganda Tea Co Ltd is an agro-manufacturing company. It is a grower, packer and distributor of tea in Zimbabwe. The company also has hectarage of tea, macadamia, avocado and coffee plantations. It is organized into two operating segments Agriculture segment consist of five estates inter-cropped with tea, coffee, avocados and macadamia nuts; and Beverage segment consists of a tea blending and packaging plant as well as a distribution warehouse in Mutare. Packed tea from the factory is sold and distributed through distribution depots in Harare, Bulawayo, Gweru and Mutare. It derives majority of the revenue from Agriculture segment.

Tanganda Tea Co Headlines

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