Valson Industries (BOM:530459) Interest Coverage : 0.67 (As of Dec. 2023)

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What is Valson 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. Valson Industries's Operating Income for the three months ended in Dec. 2023 was ₹2 Mil. Valson Industries's Interest Expense for the three months ended in Dec. 2023 was ₹-3 Mil. Valson Industries's interest coverage for the quarter that ended in Dec. 2023 was 0.67. The higher the ratio, the stronger the company's financial strength is.

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

BOM:530459' s Interest Coverage Range Over the Past 10 Years
Min: 1.14 Med: 2.96 Max: 8.19
Current: 1.31

BOM:530459's Interest Coverage is ranked worse than
83.77% of 721 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.02 vs BOM:530459: 1.31

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

Valson Industries Interest Coverage Historical Data

The historical data trend for Valson 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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Valson Industries Interest Coverage Chart

Valson Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

3.56

1.14

1.28

Valson Industries 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															0.57	1.98	1.12	1.44	0.67

Competitive Comparison of Valson Industries's Interest Coverage

For the Textile Manufacturing subindustry, Valson 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.

Valson Industries's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Valson Industries's Interest Coverage falls into.

Valson 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.

Valson Industries'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, Valson Industries's Interest Expense was ₹-13 Mil. Its Operating Income was ₹16 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹54 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	16.446	/	-12.882
	=	1.28

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

Here, for the three months ended in Dec. 2023, Valson Industries's Interest Expense was ₹-3 Mil. Its Operating Income was ₹2 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	*	2.022	/	-3.019
	=	0.67

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

Valson Industries (BOM:530459) 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 .

Valson Industries Interest Coverage Related Terms

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

Valson Industries (BOM:530459) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Valson Industries Ltd (BOM:530459) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Sir M. V. Road, Unit No.28, Ground Floor, Building No. 6, Mittal Industrial Estate, Andheri (East), Mumbai, MH, IND, 400059

Website

https://www.valsonindia.com

Valson Industries Ltd is an Indian company engaged in the business of Polyester Dyed Yarn and processors of Cotton and other fancy yarn. The company is a manufacturer, exporter of Polyester Texturized, Twisted, Nylon, Spun, Fancy, Cellulosic Dyed yarns and processors (Dyer) of polyester, viscose,. The principal business activities of the company are Manufacture of synthetic or artificial filament yarn, tenacity yarn whether or not textured including high tenacity yarn. The single business segment is Yarn. The majority of the revenue is from domestic sales of texturized, twisted, Dyed & Fancy Yarn. Its products are used in a range of applications, including shirting, suiting's, label, upholstery, hosiery, furnishings, automotive, and ready-made garments industries.

Valson Industries (BOM:530459) Headlines

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