Bhatia Colour Chem (BOM:543497) Interest Coverage : 3.09 (As of Sep. 2023)

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What is Bhatia Colour Chem 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. Bhatia Colour Chem's Operating Income for the six months ended in Sep. 2023 was ₹30 Mil. Bhatia Colour Chem's Interest Expense for the six months ended in Sep. 2023 was ₹-10 Mil. Bhatia Colour Chem's interest coverage for the quarter that ended in Sep. 2023 was 3.09. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Bhatia Colour Chem's Interest Coverage or its related term are showing as below:

BOM:543497' s Interest Coverage Range Over the Past 10 Years
Min: 2.28 Med: 4.22 Max: 6.15
Current: 3.37

BOM:543497's Interest Coverage is ranked worse than
76.95% of 1180 companies
in the Chemicals industry
Industry Median: 9.71 vs BOM:543497: 3.37

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

Bhatia Colour Chem Interest Coverage Historical Data

The historical data trend for Bhatia Colour Chem'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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Bhatia Colour Chem Interest Coverage Chart

Bhatia Colour Chem Annual Data

Trend

Mar22

Mar23

Interest Coverage

6.15

2.28

Bhatia Colour Chem Semi-Annual Data
	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	No Debt	6.15	1.63	3.64	3.09

Competitive Comparison of Bhatia Colour Chem's Interest Coverage

For the Specialty Chemicals subindustry, Bhatia Colour Chem'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.

Bhatia Colour Chem's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Bhatia Colour Chem's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Bhatia Colour Chem's Interest Coverage falls into.

Bhatia Colour Chem 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.

Bhatia Colour Chem'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, Bhatia Colour Chem's Interest Expense was ₹-31 Mil. Its Operating Income was ₹71 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹193 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	70.878	/	-31.082
	=	2.28

Bhatia Colour Chem's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Bhatia Colour Chem's Interest Expense was ₹-10 Mil. Its Operating Income was ₹30 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹113 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	29.781	/	-9.631
	=	3.09

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

Bhatia Colour Chem (BOM:543497) 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 .

Bhatia Colour Chem Interest Coverage Related Terms

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Bhatia Colour Chem (BOM:543497) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Bhatia Colour Chem Ltd (BOM:543497) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Road No. 1 Udhna Udhyog, Plot No. Plot No. A/2/12, Sangh, Udhna, Surat, GJ, IND, 394210

Website

https://www.bccl.info

Bhatia Colour Chem Ltd Ltd specializes in the trading and manufacturing of chemicals, dyes, and auxiliary products. The company produces Value Added Printing Products, Textile Auxiliaries and Chemicals, Foil Binders, Glitter Powder, Printing Inks, and Zari Binders with a variety of ranges and specialization as per the demand of the client. The products are mainly useful for the printing on Textile materials like Polyester and Cotton which includes, ambos on T-shirts, Zari Prints, and shading.

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