Adani Wilmar (NSE:AWL) Interest Coverage

: 1.48 (As of Dec. 2023)

View and export this data going back to 2022. Start your Free Trial

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. Adani Wilmar's Operating Income for the three months ended in Dec. 2023 was ₹2,763 Mil. Adani Wilmar's Interest Expense for the three months ended in Dec. 2023 was ₹-1,871 Mil. Adani Wilmar's interest coverage for the quarter that ended in Dec. 2023 was 1.48. The higher the ratio, the stronger the company's financial strength is.

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

NSE:AWL' s Interest Coverage Range Over the Past 10 Years
Min: 2.75 Med: 3.31 Max: 6.37
Current: 2.75

NSE:AWL's Interest Coverage is ranked worse than
75.6% of 1377 companies
in the Consumer Packaged Goods industry
Industry Median: 8.37 vs NSE:AWL: 2.75

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

Adani Wilmar Interest Coverage Historical Data

The historical data trend for Adani Wilmar'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.

Adani Wilmar Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

3.31

3.24

3.88

6.37

3.30

Adani Wilmar Quarterly Data
	Mar19	Mar20	Sep20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial										1.90	-	0.22	0.22	1.48

Competitive Comparison

For the Packaged Foods subindustry, Adani Wilmar'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.

Adani Wilmar Interest Coverage Distribution

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

* The bar in red indicates where Adani Wilmar's Interest Coverage falls into.

Adani Wilmar 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.

Adani Wilmar'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, Adani Wilmar's Interest Expense was ₹-4,544 Mil. Its Operating Income was ₹14,982 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1,185 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	14982.2	/	-4543.5
	=	3.30

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

Here, for the three months ended in Dec. 2023, Adani Wilmar's Interest Expense was ₹-1,871 Mil. Its Operating Income was ₹2,763 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2762.6	/	-1870.8
	=	1.48

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

Adani Wilmar (NSE:AWL) 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 .

Adani Wilmar Interest Coverage Related Terms

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

Adani Wilmar (NSE:AWL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Adani Wilmar Ltd (NSE:AWL) » Definitions » Interest Coverage

Traded in Other Exchanges

543458:India

Address

Near Navrangpura Railway Crossing, Fortune House, Ahmedabad, GJ, IND, 380 009

Website

https://www.adaniwilmar.com

Adani Wilmar Ltd is an FMCG food company offering most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. The company also offers a diverse range of industry essentials, including oleochemicals, castor oil and its derivatives, and de-oiled cakes. The company's products are offered under a diverse range of brands across a broad price spectrum and cater to different customer groups. The company sells its entire range of packed products under the following brands: Fortune, King's, Raag, Bullet, Fryola, Jubilee, Aadhaar, and VIVO.

Adani Wilmar (NSE:AWL) Headlines

No Headlines