Ashirwad Steels & Industries (BOM:526847) Interest Coverage : 84.52 (As of Mar. 2024)

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What is Ashirwad Steels & Industries 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. Ashirwad Steels & Industries's Operating Income for the three months ended in Mar. 2024 was ₹5.58 Mil. Ashirwad Steels & Industries's Interest Expense for the three months ended in Mar. 2024 was ₹-0.07 Mil. Ashirwad Steels & Industries's interest coverage for the quarter that ended in Mar. 2024 was 84.52. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ashirwad Steels & Industries's Interest Coverage or its related term are showing as below:

BOM:526847' s Interest Coverage Range Over the Past 10 Years
Min: 6.94 Med: 13.75 Max: 20.53
Current: 6.94

BOM:526847's Interest Coverage is ranked better than
54.51% of 466 companies
in the Steel industry
Industry Median: 5.995 vs BOM:526847: 6.94

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

Ashirwad Steels & Industries Interest Coverage Historical Data

The historical data trend for Ashirwad Steels & Industries'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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Ashirwad Steels & Industries Interest Coverage Chart

Ashirwad Steels & Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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20.53

6.96

Ashirwad Steels & Industries Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															3,907.00	-	-	2.02	84.52

Competitive Comparison of Ashirwad Steels & Industries's Interest Coverage

For the Steel subindustry, Ashirwad Steels & Industries'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.

Ashirwad Steels & Industries's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Ashirwad Steels & Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ashirwad Steels & Industries's Interest Coverage falls into.

Ashirwad Steels & Industries 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.

Ashirwad Steels & Industries's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, Ashirwad Steels & Industries's Interest Expense was ₹-0.62 Mil. Its Operating Income was ₹4.34 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0.00 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	4.34	/	-0.624
	=	6.96

Ashirwad Steels & Industries's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Ashirwad Steels & Industries's Interest Expense was ₹-0.07 Mil. Its Operating Income was ₹5.58 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0.00 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	5.578	/	-0.066
	=	84.52

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

Ashirwad Steels & Industries (BOM:526847) 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 .

Ashirwad Steels & Industries Interest Coverage Related Terms

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

Ashirwad Steels & Industries (BOM:526847) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Ashirwad Steels & Industries Ltd (BOM:526847) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

6, Waterloo Street, 5th Floor, Suite No. 506, Kolkata, WB, IND, 700069

Website

https://www.ashirwadsteels.com

Ashirwad Steels & Industries Ltd is an Indian based company that operates in the sponge iron business. It is involved in the manufacturing of sponge iron using iron-ore and coal as the raw materials. The sponge iron is used as input by the steel melting shops to produce ingots and billets which are thereafter re-rolled by the rolling mills to produce end steel products like Rods, Bars, Plain Rounds, Angles, Flats, Channels, Girders and others. Geographically, the business activity is carried out through the region of India and derives revenue through the sale of products.

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