Rajoo Engineers (BOM:522257) Interest Coverage : 30.99 (As of Mar. 2024)

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What is Rajoo Engineers 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. Rajoo Engineers's Operating Income for the three months ended in Mar. 2024 was ₹81 Mil. Rajoo Engineers's Interest Expense for the three months ended in Mar. 2024 was ₹-3 Mil. Rajoo Engineers's interest coverage for the quarter that ended in Mar. 2024 was 30.99. The higher the ratio, the stronger the company's financial strength is.

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

BOM:522257' s Interest Coverage Range Over the Past 10 Years
Min: 1.86 Med: 30.66 Max: 155.58
Current: 34.83

BOM:522257's Interest Coverage is ranked better than
68.23% of 2298 companies
in the Industrial Products industry
Industry Median: 13.58 vs BOM:522257: 34.83

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

Rajoo Engineers Interest Coverage Historical Data

The historical data trend for Rajoo Engineers'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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Rajoo Engineers Interest Coverage Chart

Rajoo Engineers Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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1.86

29.65

155.58

32.32

34.83

Rajoo Engineers 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															39.42	23.94	42.70	39.29	30.99

Competitive Comparison of Rajoo Engineers's Interest Coverage

For the Specialty Industrial Machinery subindustry, Rajoo Engineers'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.

Rajoo Engineers's Interest Coverage Distribution in the Industrial Products Industry

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

* The bar in red indicates where Rajoo Engineers's Interest Coverage falls into.

Rajoo Engineers 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.

Rajoo Engineers'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, Rajoo Engineers's Interest Expense was ₹-7 Mil. Its Operating Income was ₹231 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	231.468	/	-6.646
	=	34.83

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

Here, for the three months ended in Mar. 2024, Rajoo Engineers's Interest Expense was ₹-3 Mil. Its Operating Income was ₹81 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	80.512	/	-2.598
	=	30.99

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

Rajoo Engineers (BOM:522257) 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 .

Rajoo Engineers Interest Coverage Related Terms

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

Rajoo Engineers (BOM:522257) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Rajoo Engineers Ltd (BOM:522257) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Rajoo Avenue, Survey Number 210, Plot Number 1, Industrial Area, Veraval (Shapar), Rajkot, GJ, IND, 360 024

Website

https://www.rajoo.com

Rajoo Engineers Ltd manufactures and sells plastic processing machinery and post extrusion equipment. The company's products and solutions include Monolayer Blown Film Lines, Downward Extrusion Blown Film Lines, Multilayer Blown Film Lines, 5 Layer Polyolefin Dedicated, PS/PP/ABS Sheet Lines, PS/PE Foam Extrusion Lines, Thermoforming, PS Foam Vacuum Forming Machines, Twin Screw, Pipe Plant, Drip Irrigation Pipe Plant for Round, Flat Dripper, Lab Equipment and others. Company products apply to flexible packaging, agriculture, infrastructure, automobiles, food and beverages, pharmaceuticals, stationery, printing, etc. It serves the domestic and international markets and derives substantial revenue from the sale of services overseas.

Rajoo Engineers (BOM:522257) Headlines

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