Natco Pharma (BOM:524816) Interest Coverage : 71.26 (As of Mar. 2024)

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What is Natco Pharma 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. Natco Pharma's Operating Income for the three months ended in Mar. 2024 was ₹4,418 Mil. Natco Pharma's Interest Expense for the three months ended in Mar. 2024 was ₹-62 Mil. Natco Pharma's interest coverage for the quarter that ended in Mar. 2024 was 71.26. 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. Natco Pharma Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

BOM:524816' s Interest Coverage Range Over the Past 10 Years
Min: 4.39 Med: 34.36 Max: 134.5
Current: 134.5

BOM:524816's Interest Coverage is ranked better than
81.36% of 676 companies
in the Drug Manufacturers industry
Industry Median: 12.85 vs BOM:524816: 134.50

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

Natco Pharma Interest Coverage Historical Data

The historical data trend for Natco Pharma'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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Natco Pharma Interest Coverage Chart

Natco Pharma Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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27.75

56.97

10.67

53.23

81.49

Natco Pharma 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															110.41	115.36	98.67	48.67	71.26

Competitive Comparison of Natco Pharma's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma'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.

Natco Pharma's Interest Coverage Distribution in the Drug Manufacturers Industry

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

* The bar in red indicates where Natco Pharma's Interest Coverage falls into.

Natco Pharma 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.

Natco Pharma'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, Natco Pharma's Interest Expense was ₹-192 Mil. Its Operating Income was ₹15,646 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹53 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	15646	/	-192
	=	81.49

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

Here, for the three months ended in Mar. 2024, Natco Pharma's Interest Expense was ₹-62 Mil. Its Operating Income was ₹4,418 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹53 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	4418	/	-62
	=	71.26

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

Natco Pharma (BOM:524816) 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 .

Natco Pharma Interest Coverage Related Terms

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

Natco Pharma (BOM:524816) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Natco Pharma Ltd (BOM:524816) » Definitions » Interest Coverage

Traded in Other Exchanges

NATCOPHARM:India

Address

Road No. 2, NATCO House, Banjara Hills, Hyderabad, TG, IND, 500034

Website

https://www.natcopharma.co.in

Natco Pharma Ltd is a major drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. Within the pharma business segment, the company drives its sales through Finished Dosage Forms and Active Pharmaceutical Ingredients.

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