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Gupta Synthetics (BOM:514116) Interest Coverage : 0 (At Loss) (As of Dec. 2017)


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What is Gupta Synthetics 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. Gupta Synthetics's Operating Income for the three months ended in Dec. 2017 was ₹-3 Mil. Gupta Synthetics's Interest Expense for the three months ended in Dec. 2017 was ₹-1 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 Gupta Synthetics's Interest Coverage or its related term are showing as below:


BOM:514116's Interest Coverage is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 5.04
* 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.


Gupta Synthetics Interest Coverage Historical Data

The historical data trend for Gupta Synthetics'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.

* Premium members only.

Gupta Synthetics Interest Coverage Chart

Gupta Synthetics Annual Data
Trend Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 2.24

Gupta Synthetics Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Sep17 Dec17
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 0.03 0.14 - - -

Competitive Comparison of Gupta Synthetics's Interest Coverage

For the Textile Manufacturing subindustry, Gupta Synthetics'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.


Gupta Synthetics's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gupta Synthetics's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Gupta Synthetics's Interest Coverage falls into.


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Gupta Synthetics 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.

Gupta Synthetics'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, Gupta Synthetics's Interest Expense was ₹-1 Mil. Its Operating Income was ₹2 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2017 )/Interest Expense (A: Mar. 2017 )
=-1*1.839/-0.822
=2.24

Gupta Synthetics's Interest Coverage for the quarter that ended in Dec. 2017 is calculated as

Here, for the three months ended in Dec. 2017, Gupta Synthetics's Interest Expense was ₹-1 Mil. Its Operating Income was ₹-3 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Gupta Synthetics did not have earnings to cover the interest expense.

* 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.


Gupta Synthetics  (BOM:514116) 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 .


Gupta Synthetics Interest Coverage Related Terms

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Gupta Synthetics Business Description

Traded in Other Exchanges
N/A
Address
101, Trividh Chambers, Opposite Fire Brigade Station, Surat, Gujrat, IND, 395 002
Gupta Synthetics Ltd is a textile manufacturing company. Principally, it is engaged in the business of texturing, draw twisting, twisting, and dyeing of yarn. The company's product consists of Polyester filament yarn, DTY yarn, Dyed yarn, Metalic yarn, Colour yarn, FDY yarn and Nylon yarn and many more.

Gupta Synthetics Headlines

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