Hindustan Petroleum (NSE:HINDPETRO) Interest Coverage : 4.25 (As of Mar. 2024)

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What is Hindustan Petroleum 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. Hindustan Petroleum's Operating Income for the three months ended in Mar. 2024 was ₹30,619 Mil. Hindustan Petroleum's Interest Expense for the three months ended in Mar. 2024 was ₹-7,196 Mil. Hindustan Petroleum's interest coverage for the quarter that ended in Mar. 2024 was 4.25. The higher the ratio, the stronger the company's financial strength is.

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

NSE:HINDPETRO' s Interest Coverage Range Over the Past 10 Years
Min: 1.67 Med: 10.27 Max: 16.35
Current: 7.49

NSE:HINDPETRO's Interest Coverage is ranked better than
54% of 763 companies
in the Oil & Gas industry
Industry Median: 6.59 vs NSE:HINDPETRO: 7.49

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

Hindustan Petroleum Interest Coverage Historical Data

The historical data trend for Hindustan Petroleum'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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Hindustan Petroleum Interest Coverage Chart

Hindustan Petroleum Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

Get a 7-Day Free Trial

3.09

12.42

6.26

7.56

Hindustan Petroleum 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															3.61	13.20	11.85	1.32	4.25

Competitive Comparison of Hindustan Petroleum's Interest Coverage

For the Oil & Gas Refining & Marketing subindustry, Hindustan Petroleum'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.

Hindustan Petroleum's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Hindustan Petroleum's Interest Coverage distribution charts can be found below:

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

Hindustan Petroleum 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.

Hindustan Petroleum'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, Hindustan Petroleum's Interest Expense was ₹-25,560 Mil. Its Operating Income was ₹193,314 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹415,882 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	193313.5	/	-25560
	=	7.56

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

Here, for the three months ended in Mar. 2024, Hindustan Petroleum's Interest Expense was ₹-7,196 Mil. Its Operating Income was ₹30,619 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹415,882 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	30619	/	-7196.3
	=	4.25

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

Hindustan Petroleum (NSE:HINDPETRO) 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 .

Hindustan Petroleum Interest Coverage Related Terms

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

Hindustan Petroleum (NSE:HINDPETRO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Hindustan Petroleum Corp Ltd (NSE:HINDPETRO) » Definitions » Interest Coverage

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Traded in Other Exchanges

500104:India

Address

17, Jamshedji Tata Road, Post Box No. 11041, Petroleum House, Churchgate, Mumbai, MH, IND, 400 020

Website

https://www.hindustanpetroleum.com

Hindustan Petroleum Corp Ltd. (HPCL) is an Indian government enterprise that refines crude oil and manufactures petroleum-based products. The company operates a diverse group of refineries that process several grades of lubes, specialties, and greases along with a variety of petroleum products. HPCL also controls an extensive network of pipelines in India that transport a variety of hydrocarbon-based products. In tandem with its host of pipelines, marketing and distribution efforts are carried out through a group of terminals, service stations, bottling plants, marketing offices, and other facilities. Hindustan's products are primarily sold throughout India. The business is divided into downstream and other operations, with downstream activities generating the most revenue.

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