Coal India (NSE:COALINDIA) Interest Coverage : 0.27 (As of Mar. 2024)

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What is Coal India 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. Coal India's Operating Income for the three months ended in Mar. 2024 was ₹636 Mil. Coal India's Interest Expense for the three months ended in Mar. 2024 was ₹-2,322 Mil. Coal India's interest coverage for the quarter that ended in Mar. 2024 was 0.27. The higher the ratio, the stronger the company's financial strength is.

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

NSE:COALINDIA' s Interest Coverage Range Over the Past 10 Years
Min: 7.05 Med: 49.33 Max: 2128.91
Current: 42.39

NSE:COALINDIA's Interest Coverage is ranked better than
57.36% of 129 companies
in the Other Energy Sources industry
Industry Median: 22.35 vs NSE:COALINDIA: 42.39

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

Coal India Interest Coverage Historical Data

The historical data trend for Coal India'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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Coal India Interest Coverage Chart

Coal India Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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54.61

33.41

53.72

49.37

42.84

Coal India 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															-	64.86	53.23	59.16	0.27

Competitive Comparison of Coal India's Interest Coverage

For the Thermal Coal subindustry, Coal India'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.

Coal India's Interest Coverage Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, Coal India's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Coal India's Interest Coverage falls into.

Coal India 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.

Coal India'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, Coal India's Interest Expense was ₹-8,194 Mil. Its Operating Income was ₹350,979 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹57,735 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	350979	/	-8193.7
	=	42.84

Coal India's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Coal India's Interest Expense was ₹-2,322 Mil. Its Operating Income was ₹636 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹57,735 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	635.5	/	-2321.8
	=	0.27

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

Coal India (NSE:COALINDIA) 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 .

Coal India Interest Coverage Related Terms

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

Coal India (NSE:COALINDIA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Other Energy Sources » Coal India Ltd (NSE:COALINDIA) » Definitions » Interest Coverage

Traded in Other Exchanges

533278:India

Address

Coal Bhawan, Premises No-04 MAR, Plot No-AF-III, Action Area-1A, 3rd Floor, Core-2, New Town, Rajarhat, Kolkata, WB, IND, 700156

Website

https://www.coalindia.in

Coal India Ltd is a state-owned coal mining company, which was formed when the government took over many private coal mines. As one of the largest coal producers in the world, Coal India is responsible for the vast majority of India's coal production. The company operates across numerous mining areas spread over various provincial states of India, and one mine planning and consultancy company. The Company is primarily engaged in a single segment business of production and sale of Coal. Coal India has hundreds of mines, the bulk of which are underground, closely trailed by open-pit, while also operating multiple coking coal washeries.

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