Abbott India (BOM:500488) Interest Coverage : 110.80 (As of Mar. 2024)

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What is Abbott 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. Abbott India's Operating Income for the three months ended in Mar. 2024 was ₹3,113 Mil. Abbott India's Interest Expense for the three months ended in Mar. 2024 was ₹-28 Mil. Abbott India's interest coverage for the quarter that ended in Mar. 2024 was 110.80. 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. Abbott India Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

BOM:500488' s Interest Coverage Range Over the Past 10 Years
Min: 47.71 Med: 122.77 Max: 607.29
Current: 111

BOM:500488's Interest Coverage is ranked better than
79.5% of 683 companies
in the Drug Manufacturers industry
Industry Median: 12.25 vs BOM:500488: 111.00

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

Abbott India Interest Coverage Historical Data

The historical data trend for Abbott 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.

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Abbott India Interest Coverage Chart

Abbott India Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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82.67

47.71

53.71

71.02

111.00

Abbott India 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															65.53	101.15	115.99	116.63	110.80

Competitive Comparison of Abbott India's Interest Coverage

For the Drug Manufacturers - General subindustry, Abbott 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.

Abbott India's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Abbott India's Interest Coverage distribution charts can be found below:

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

Abbott 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.

Abbott India'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, Abbott India's Interest Expense was ₹-125 Mil. Its Operating Income was ₹13,819 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹368 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	13819.3	/	-124.5
	=	111.00

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

Here, for the three months ended in Mar. 2024, Abbott India's Interest Expense was ₹-28 Mil. Its Operating Income was ₹3,113 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹368 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	3113.4	/	-28.1
	=	110.80

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

Abbott India (BOM:500488) 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 .

Abbott India Interest Coverage Related Terms

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

Abbott India (BOM:500488) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Abbott India Ltd (BOM:500488) » Definitions » Interest Coverage

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ABBOTINDIA:India

Address

15-16th Floor, Godrej BKC, Plot C-68, G Block, Near MCA Club, Bandra-Kurla Complex, Bandra (East), Mumbai, MH, IND, 400 051

Website

https://www.abbott.co.in

Abbott India Ltd is a major drug manufacturing company that offers products offerings in diagnostics, medical devices, nutritionals, and branded generic pharmaceuticals. The vast majority of the company's revenue is generated in the India. The company's patient focus centers overwhelmingly toward women's health and gastrointestine, gastroenterology, and hepatic care. The company expects an increased use of collaboration with strategic partners as a component of its growth strategy.

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