Coffee Day Enterprises (NSE:COFFEEDAY) Interest Coverage : 1.05 (As of Dec. 2023)

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What is Coffee Day Enterprises 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. Coffee Day Enterprises's Operating Income for the three months ended in Dec. 2023 was ₹170 Mil. Coffee Day Enterprises's Interest Expense for the three months ended in Dec. 2023 was ₹-162 Mil. Coffee Day Enterprises's interest coverage for the quarter that ended in Dec. 2023 was 1.05. The higher the ratio, the stronger the company's financial strength is.

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

NSE:COFFEEDAY' s Interest Coverage Range Over the Past 10 Years
Min: 0.08 Med: 0.61 Max: 8.21
Current: 8.21

NSE:COFFEEDAY's Interest Coverage is ranked better than
54.75% of 263 companies
in the Restaurants industry
Industry Median: 7.13 vs NSE:COFFEEDAY: 8.21

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

Coffee Day Enterprises Interest Coverage Historical Data

The historical data trend for Coffee Day Enterprises'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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Coffee Day Enterprises Interest Coverage Chart

Coffee Day Enterprises Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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0.61

0.08

Coffee Day Enterprises 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															-	21.58	1.78	0.99	1.05

Competitive Comparison of Coffee Day Enterprises's Interest Coverage

For the Restaurants subindustry, Coffee Day Enterprises'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.

Coffee Day Enterprises's Interest Coverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Coffee Day Enterprises's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Coffee Day Enterprises's Interest Coverage falls into.

Coffee Day Enterprises 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.

Coffee Day Enterprises'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, Coffee Day Enterprises's Interest Expense was ₹-774 Mil. Its Operating Income was ₹62 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹3,291 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	61.9	/	-773.9
	=	0.08

Coffee Day Enterprises's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Coffee Day Enterprises's Interest Expense was ₹-162 Mil. Its Operating Income was ₹170 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	*	169.6	/	-161.8
	=	1.05

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

Coffee Day Enterprises (NSE:COFFEEDAY) 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 .

Coffee Day Enterprises Interest Coverage Related Terms

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

Coffee Day Enterprises (NSE:COFFEEDAY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Coffee Day Enterprises Ltd (NSE:COFFEEDAY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

539436:India

Address

Vittal Mallya Road, 23/2, Coffee Day Square, Bangalore, KA, IND, 560001

Website

https://www.coffeeday.com

Coffee Day Enterprises Ltd is engaged in a coffee business which includes procuring, processing, and roasting of coffee beans to retailing of coffee products across various formats. The company is also engaged in the logistics business providing services as port handling, road and rail, logistics, container freight stations, and mining to provide integrated logistics solutions. It operates through the following business segments: Coffee and related business, Integrated multimodal logistics, Hospitality Services, and Investment and other corporate operations. The majority of the company's revenue comes from its Coffee related business. The vast majority of its revenue is generated within India.

Coffee Day Enterprises (NSE:COFFEEDAY) Headlines

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