ABB India (BOM:500002) Interest Coverage : 59.56 (As of Dec. 2023)

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What is ABB 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. ABB India's Operating Income for the three months ended in Dec. 2023 was ₹4,628 Mil. ABB India's Interest Expense for the three months ended in Dec. 2023 was ₹-78 Mil. ABB India's interest coverage for the quarter that ended in Dec. 2023 was 59.56. 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. ABB India Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

BOM:500002' s Interest Coverage Range Over the Past 10 Years
Min: 5.39 Med: 19.47 Max: 118.04
Current: 118.04

BOM:500002's Interest Coverage is ranked better than
82.32% of 2297 companies
in the Industrial Products industry
Industry Median: 13.67 vs BOM:500002: 118.04

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

ABB India Interest Coverage Historical Data

The historical data trend for ABB 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.

* Premium members only.

ABB India Interest Coverage Chart

ABB India Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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52.14

27.32

57.95

86.57

118.04

ABB India 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															84.43	115.62	229.85	463.91	59.56

Competitive Comparison of ABB India's Interest Coverage

For the Specialty Industrial Machinery subindustry, ABB 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.

ABB India's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, ABB India's Interest Coverage distribution charts can be found below:

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

ABB 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.

ABB India's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, ABB India's Interest Expense was ₹-123 Mil. Its Operating Income was ₹14,483 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹289 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	14483.1	/	-122.7
	=	118.04

ABB India's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, ABB India's Interest Expense was ₹-78 Mil. Its Operating Income was ₹4,628 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹289 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	4627.5	/	-77.7
	=	59.56

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

ABB India (BOM:500002) 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 .

ABB India Interest Coverage Related Terms

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

ABB India (BOM:500002) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » ABB India Ltd (BOM:500002) » Definitions » Interest Coverage

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ABB:India

Address

Peenya Industrial Area IV, Disha - 3rd Floor, Plot No. 5 & 6, 2nd Stage, Peenya, Bengaluru, KA, IND, 560 058

Website

http://www.abb.co.in

ABB India Ltd offers systems and services for electrical distribution, power grids and plants, machinery components, and other industrial applications. The engineering company attempts to increase industrial productivity while lowering the environmental impact. The company's revenue is split between its four operating segments: Robotics and Discrete Automation, Electrification, Motion, and Industrial Automation. Solutions can control the entire flow of power plants or be individualized to specific transformers, circuit breakers, motors, and other automated machinery. The company has several manufacturing sites located in India, and the majority of its revenue is generated in India.

ABB India (BOM:500002) Headlines

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