ACI Formulations (DHA:ACIFORMULA) Interest Coverage

: 3.48 (As of Dec. 2023)

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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. ACI Formulations's Operating Income for the three months ended in Dec. 2023 was BDT235 Mil. ACI Formulations's Interest Expense for the three months ended in Dec. 2023 was BDT-68 Mil. ACI Formulations's interest coverage for the quarter that ended in Dec. 2023 was 3.48. The higher the ratio, the stronger the company's financial strength is.

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

DHA:ACIFORMULA' s Interest Coverage Range Over the Past 10 Years
Min: 1.53 Med: 3.32 Max: 7.96
Current: 1.87

DHA:ACIFORMULA's Interest Coverage is ranked worse than
82.22% of 180 companies
in the Agriculture industry
Industry Median: 7.59 vs DHA:ACIFORMULA: 1.87

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

ACI Formulations Interest Coverage Historical Data

The historical data trend for ACI Formulations'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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ACI Formulations Annual Data

Trend

Dec13

Dec14

Dec15

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

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1.73

1.53

3.23

3.40

1.91

ACI Formulations 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															3.99	2.25	-	2.83	3.48

Competitive Comparison

For the Agricultural Inputs subindustry, ACI Formulations'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.

ACI Formulations Interest Coverage Distribution

For the Agriculture industry and Basic Materials sector, ACI Formulations's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ACI Formulations's Interest Coverage falls into.

ACI Formulations 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.

ACI Formulations's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, ACI Formulations's Interest Expense was BDT-259 Mil. Its Operating Income was BDT495 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT31 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	494.538	/	-259.196
	=	1.91

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

Here, for the three months ended in Dec. 2023, ACI Formulations's Interest Expense was BDT-68 Mil. Its Operating Income was BDT235 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT25 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	235.287	/	-67.666
	=	3.48

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

ACI Formulations (DHA:ACIFORMULA) 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 .

ACI Formulations Interest Coverage Related Terms

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

ACI Formulations (DHA:ACIFORMULA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » ACI Formulations Ltd (DHA:ACIFORMULA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

ACI Centre, 245, Tejgaon Industrial Area, Dhaka, BGD, 1208

Website

https://www.aci-bd.com

ACI Formulations Ltd is an agricultural chemicals manufacturer. The principal activities of the company are manufacturing and marketing a number of agrochemical and consumer products. The company has structured its operations into the following business segments - Crop Care and Public Health segment, which manufactures and sell crop care and public health products; Mosquito Coil segment is engaged in the manufacturing and selling of mosquito coil products; the Aerosol segment is engaged in the manufacturing and selling aerosol and air freshener products; and Paint segment which manufactures and sells paint products. It derives key revenue from the Crop Care and Public Health segment.

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