Garware Synthetics (BOM:514400) Interest Coverage : 1.31 (As of Dec. 2023)

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What is Garware 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. Garware Synthetics's Operating Income for the three months ended in Dec. 2023 was ₹0.7 Mil. Garware Synthetics's Interest Expense for the three months ended in Dec. 2023 was ₹-0.5 Mil. Garware Synthetics's interest coverage for the quarter that ended in Dec. 2023 was 1.31. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Garware Synthetics Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

BOM:514400' s Interest Coverage Range Over the Past 10 Years
Min: 0.02 Med: 2.41 Max: 5.46
Current: 0.32

BOM:514400's Interest Coverage is ranked worse than
97.88% of 709 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.29 vs BOM:514400: 0.32

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

Garware Synthetics Interest Coverage Historical Data

The historical data trend for Garware 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.

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Garware Synthetics Interest Coverage Chart

Garware Synthetics Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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0.02

3.12

2.41

1.48

0.27

Garware Synthetics Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															0.54	-	1.37	-	1.31

Competitive Comparison of Garware Synthetics's Interest Coverage

For the Textile Manufacturing subindustry, Garware 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.

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

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

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

Garware 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.

Garware Synthetics's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Garware Synthetics's Interest Expense was ₹-3.3 Mil. Its Operating Income was ₹0.9 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹15.5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	0.886	/	-3.292
	=	0.27

Garware Synthetics's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Garware Synthetics's Interest Expense was ₹-0.5 Mil. Its Operating Income was ₹0.7 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	0.71	/	-0.54
	=	1.31

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

Garware Synthetics (BOM:514400) 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 .

Garware Synthetics Interest Coverage Related Terms

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

Garware Synthetics (BOM:514400) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Garware Synthetics Ltd (BOM:514400) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

C/o. Manish Textiles Industries Premises, Penkar Pada, Mira Road (East), Opposite Golden Chemical, Thane, IND, 401104

Website

https://www.garwaresyn.com

Garware Synthetics Ltd is a company engaged in the business of manufacturing Garflon Nylon Monofilaments, Rods, Bristles, Fishing line, Bushes and Machinery parts, and Polypropylene bristles. The company manufactures its products under the GARFLON brand name. The group's products are used for the products such as toothbrushes, shaving brushes, paintbrushes, and industrial and household brushes. The firm principally operates in India and generates key revenue from the sale of Garflon Nylon Bristles.

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