Oriental Aromatics (BOM:500078) Interest Coverage : 4.60 (As of Mar. 2024)

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What is Oriental Aromatics 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. Oriental Aromatics's Operating Income for the three months ended in Mar. 2024 was ₹158 Mil. Oriental Aromatics's Interest Expense for the three months ended in Mar. 2024 was ₹-34 Mil. Oriental Aromatics's interest coverage for the quarter that ended in Mar. 2024 was 4.60. The higher the ratio, the stronger the company's financial strength is.

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

BOM:500078' s Interest Coverage Range Over the Past 10 Years
Min: 1.33 Med: 7.35 Max: 105.02
Current: 1.34

BOM:500078's Interest Coverage is ranked worse than
90.96% of 1172 companies
in the Chemicals industry
Industry Median: 9.55 vs BOM:500078: 1.34

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

Oriental Aromatics Interest Coverage Historical Data

The historical data trend for Oriental Aromatics'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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Oriental Aromatics Interest Coverage Chart

Oriental Aromatics Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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15.98

105.02

18.67

2.67

1.33

Oriental Aromatics 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															1.34	-	1.12	1.33	4.60

Competitive Comparison of Oriental Aromatics's Interest Coverage

For the Specialty Chemicals subindustry, Oriental Aromatics'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.

Oriental Aromatics's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Oriental Aromatics's Interest Coverage distribution charts can be found below:

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

Oriental Aromatics 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.

Oriental Aromatics'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, Oriental Aromatics's Interest Expense was ₹-204 Mil. Its Operating Income was ₹271 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹529 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	271.423	/	-203.681
	=	1.33

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

Here, for the three months ended in Mar. 2024, Oriental Aromatics's Interest Expense was ₹-34 Mil. Its Operating Income was ₹158 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹529 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	158.107	/	-34.347
	=	4.60

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

Oriental Aromatics (BOM:500078) 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 .

Oriental Aromatics Interest Coverage Related Terms

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

Oriental Aromatics (BOM:500078) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Oriental Aromatics Ltd (BOM:500078) » Definitions » Interest Coverage

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Traded in Other Exchanges

OAL:India

Address

Mahatma Gandhi Road, 133, Jehangir Building, 2nd Floor, Fort, Mumbai, MH, IND, 400 001

Website

https://www.orientalaromatics.com

Oriental Aromatics Ltd is Indian based company engaged in the business of manufacture of fine chemicals along with its principal products and services include Perfumery Chemicals, and Camphor and Isoborneol. The organization is also holds manufacturing and selling of camphor, terpineols, resins, aromatic and terpene chemicals, fragrance chemicals and fragrance chemical intermediaries. The firm offers a range of products, which consists of synthetic camphor, terpineols, pine oils, resins, astromusk, perfumery chemicals and specialty chemicals. The primary segment of the company is in the business of manufacture of fine chemicals. It operates in two geographical segments: Domestic and Export. The company made majority of its revenue within operations in India.

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