DCM Shriram (BOM:523367) Interest Coverage : 24.56 (As of Dec. 2023)

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What is DCM Shriram 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. DCM Shriram's Operating Income for the three months ended in Dec. 2023 was ₹3,687 Mil. DCM Shriram's Interest Expense for the three months ended in Dec. 2023 was ₹-150 Mil. DCM Shriram's interest coverage for the quarter that ended in Dec. 2023 was 24.56. The higher the ratio, the stronger the company's financial strength is.

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

BOM:523367' s Interest Coverage Range Over the Past 10 Years
Min: 4.73 Med: 11.08 Max: 30.71
Current: 14.07

BOM:523367's Interest Coverage is ranked better than
57.6% of 1177 companies
in the Chemicals industry
Industry Median: 9.88 vs BOM:523367: 14.07

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

DCM Shriram Interest Coverage Historical Data

The historical data trend for DCM Shriram'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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DCM Shriram Interest Coverage Chart

DCM Shriram Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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12.27

7.55

9.62

24.93

30.71

DCM Shriram 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															38.29	66.40	3.71	2.73	24.56

Competitive Comparison of DCM Shriram's Interest Coverage

For the Specialty Chemicals subindustry, DCM Shriram'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.

DCM Shriram's Interest Coverage Distribution in the Chemicals Industry

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

* The bar in red indicates where DCM Shriram's Interest Coverage falls into.

DCM Shriram 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.

DCM Shriram's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, DCM Shriram's Interest Expense was ₹-461 Mil. Its Operating Income was ₹14,162 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹12,149 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	14161.9	/	-461.1
	=	30.71

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

Here, for the three months ended in Dec. 2023, DCM Shriram's Interest Expense was ₹-150 Mil. Its Operating Income was ₹3,687 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	3686.7	/	-150.1
	=	24.56

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

DCM Shriram (BOM:523367) 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 .

DCM Shriram Interest Coverage Related Terms

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

DCM Shriram (BOM:523367) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » DCM Shriram Ltd (BOM:523367) » Definitions » Interest Coverage

Comparable Companies

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DCMSHRIRAM:India

Address

Aerocity, 2 Floor (West Wing), World Mark-1, New Delhi, IND, 110037

Website

https://www.dcmshriram.com

DCM Shriram Ltd is an Indian conglomerate company which comprises of Agri-Rural, Chlor-Vinyl and value-added businesses. The company's business activities include the manufacture of fertilisers and pesticides, basic inorganic chemicals N.E.C and refining sugar. The company produces Urea & SSP fertilisers, sugar, farm inputs such as DAP, caustic soda, chlorine, calcium carbide, PVC resins, PVC compounds, power, and cement. Its Agri-input business produces hybrid seeds, pesticides, Bulk fertilizers, micro-nutrients and other value-added inputs. In addition, company engaged in research, production, processing, extension activities and marketing. The company manages its business in six segments; Fertilisers, Chloro-Vinyl, Shriram Farm solution, Bioseed, Sugar, and others.

DCM Shriram (BOM:523367) Headlines

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