EMS (NSE:EMSLIMITED) Interest Coverage : 26.20 (As of Sep. 2023)

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What is EMS 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. EMS's Operating Income for the six months ended in Sep. 2023 was ₹868 Mil. EMS's Interest Expense for the six months ended in Sep. 2023 was ₹-33 Mil. EMS's interest coverage for the quarter that ended in Sep. 2023 was 26.20. 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. EMS Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

NSE:EMSLIMITED' s Interest Coverage Range Over the Past 10 Years
Min: 78.94 Med: 1035.51 Max: 4526.39
Current: 88.97

NSE:EMSLIMITED's Interest Coverage is ranked better than
84.94% of 1262 companies
in the Construction industry
Industry Median: 7.095 vs NSE:EMSLIMITED: 88.97

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

EMS Interest Coverage Historical Data

The historical data trend for EMS'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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EMS Interest Coverage Chart

EMS Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Interest Coverage

78.94

218.59

4,526.39

1,852.42

EMS Semi-Annual Data
	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial			N/A	N/A	39.99	-	26.20

Competitive Comparison of EMS's Interest Coverage

For the Engineering & Construction subindustry, EMS'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.

EMS's Interest Coverage Distribution in the Construction Industry

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

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

EMS 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.

EMS'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, EMS's Interest Expense was ₹-1 Mil. Its Operating Income was ₹1,456 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹454 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	1456.001	/	-0.786
	=	1,852.42

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

Here, for the six months ended in Sep. 2023, EMS's Interest Expense was ₹-33 Mil. Its Operating Income was ₹868 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹491 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	868.41	/	-33.146
	=	26.20

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

EMS (NSE:EMSLIMITED) 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 .

EMS Interest Coverage Related Terms

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

EMS (NSE:EMSLIMITED) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » EMS Ltd (NSE:EMSLIMITED) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

543983:India

Address

C-88, Raj Nagar District Centre, Second Floor, Raj Nagar, Ghaziabad, UP, IND, 201002

Website

https://www.ems.co.in

EMS Ltd is a multi-disciplinary Engineering, Procurement, and Construction company. It is engaged in the business of Sewerage contractors, Sewerage Treatment Plants (STP) Works, and Electricity transmission and distribution. The company is engaged in the business of providing turnkey services in water and wastewater collection, treatment and disposal, Gravity and Pressure Pipeline Networks, Reservoirs, and Pump houses along with complete Electro-Mechanical solutions.

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