Chennai Petroleum (BOM:500110) Interest Coverage : 17.49 (As of Mar. 2024)

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What is Chennai 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. Chennai Petroleum's Operating Income for the three months ended in Mar. 2024 was ₹8,910 Mil. Chennai Petroleum's Interest Expense for the three months ended in Mar. 2024 was ₹-509 Mil. Chennai Petroleum's interest coverage for the quarter that ended in Mar. 2024 was 17.49. The higher the ratio, the stronger the company's financial strength is.

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

BOM:500110' s Interest Coverage Range Over the Past 10 Years
Min: 0.79 Med: 5.82 Max: 17.34
Current: 17.34

BOM:500110's Interest Coverage is ranked better than
70.39% of 760 companies
in the Oil & Gas industry
Industry Median: 6.615 vs BOM:500110: 17.34

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

Chennai Petroleum Interest Coverage Historical Data

The historical data trend for Chennai 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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Chennai Petroleum Interest Coverage Chart

Chennai Petroleum Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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4.29

5.79

15.52

17.33

Chennai 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															17.47	14.04	25.30	10.58	17.49

Competitive Comparison of Chennai Petroleum's Interest Coverage

For the Oil & Gas Refining & Marketing subindustry, Chennai 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.

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

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

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

Chennai 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.

Chennai 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, Chennai Petroleum's Interest Expense was ₹-2,233 Mil. Its Operating Income was ₹38,700 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹13,515 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	38699.7	/	-2232.8
	=	17.33

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

Here, for the three months ended in Mar. 2024, Chennai Petroleum's Interest Expense was ₹-509 Mil. Its Operating Income was ₹8,910 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹13,515 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	8909.7	/	-509.4
	=	17.49

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

Chennai Petroleum (BOM:500110) 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 .

Chennai Petroleum Interest Coverage Related Terms

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

Chennai Petroleum (BOM:500110) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Chennai Petroleum Corp Ltd (BOM:500110) » Definitions » Interest Coverage

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CHENNPETRO:India

Address

New No. 536, Anna Salai, Teynampet, Chennai, TN, IND, 600 018

Website

https://www.cpcl.co.in

Chennai Petroleum Corp Ltd manufactures and supplies petrol products in India. The company has refineries in the following locations: Manali, Chennai and Panangudi Village, Nagapattinam District, Tamilnadu. The Manali refinery in India produces fuel, wax, lube, and petrochemical feedstock. The company also has a wax plant that produces paraffin wax for the manufacturing of candle wax, waterproof formulations, and match wax. Additionally, the company has a propylene plant which supplies petrochemical feedstock to neighbouring downstream industries. The company's main products include liquefied petroleum gas, motor spirit, superior kerosene oil, high-speed diesel, fuel oil, hexane, and petrochemical feedstocks. A large majority of sales are derived from petroleum products.

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