Grindwell Norton (BOM:506076) Interest Coverage : 57.40 (As of Dec. 2023)

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What is Grindwell Norton 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. Grindwell Norton's Operating Income for the three months ended in Dec. 2023 was ₹1,102 Mil. Grindwell Norton's Interest Expense for the three months ended in Dec. 2023 was ₹-19 Mil. Grindwell Norton's interest coverage for the quarter that ended in Dec. 2023 was 57.40. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Grindwell Norton Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

BOM:506076' s Interest Coverage Range Over the Past 10 Years
Min: 46.28 Med: 77.17 Max: 255.27
Current: 60.54

BOM:506076's Interest Coverage is ranked better than
80.43% of 1262 companies
in the Construction industry
Industry Median: 7.095 vs BOM:506076: 60.54

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

Grindwell Norton Interest Coverage Historical Data

The historical data trend for Grindwell Norton'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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Grindwell Norton Interest Coverage Chart

Grindwell Norton Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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151.34

46.28

78.96

84.44

57.72

Grindwell Norton 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															25.98	67.80	54.87	63.27	57.40

Competitive Comparison of Grindwell Norton's Interest Coverage

For the Building Products & Equipment subindustry, Grindwell Norton'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.

Grindwell Norton's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Grindwell Norton's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Grindwell Norton's Interest Coverage falls into.

Grindwell Norton 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.

Grindwell Norton'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, Grindwell Norton's Interest Expense was ₹-78 Mil. Its Operating Income was ₹4,503 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹295 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	4502.977	/	-78.008
	=	57.72

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

Here, for the three months ended in Dec. 2023, Grindwell Norton's Interest Expense was ₹-19 Mil. Its Operating Income was ₹1,102 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	*	1102	/	-19.2
	=	57.40

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

Grindwell Norton (BOM:506076) 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 .

Grindwell Norton Interest Coverage Related Terms

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

Grindwell Norton (BOM:506076) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Grindwell Norton Ltd (BOM:506076) » Definitions » Interest Coverage

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GRINDWELL:India

Address

Andheri-Kurla Road, Leela Business Park, 5th Level, Marol, Andheri (East), Mumbai, MH, IND, 400 059

Website

https://www.grindwellnorton.co.in

Grindwell Norton Ltd is a company that produces abrasives and ceramics products. The company's businesses are divided into major segments: Abrasives, Ceramics and Plastics, Digital Services and Others. The company manufactures various types of abrasives, which include bonded, coated, non-woven, construction, thin wheels, and super abrasives. Grindwell's Ceramics and Plastics division produces silicon carbide, high-temperature refractories, and fused cast ceramics. The silicon carbide products serve as raw materials that are used to create abrasives, and the company's refractories are structures used for processing both ferrous and non-ferrous metals. The company generates the vast majority of its revenue in India..

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