IRIS Business Services (BOM:540735) Interest Coverage : 7.87 (As of Dec. 2023)

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What is IRIS Business Services 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. IRIS Business Services's Operating Income for the three months ended in Dec. 2023 was ₹22.7 Mil. IRIS Business Services's Interest Expense for the three months ended in Dec. 2023 was ₹-2.9 Mil. IRIS Business Services's interest coverage for the quarter that ended in Dec. 2023 was 7.87. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for IRIS Business Services's Interest Coverage or its related term are showing as below:

BOM:540735' s Interest Coverage Range Over the Past 10 Years
Min: 1.72 Med: 4.54 Max: 9.49
Current: 9.18

BOM:540735's Interest Coverage is ranked worse than
68.75% of 1603 companies
in the Software industry
Industry Median: 28.92 vs BOM:540735: 9.18

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

IRIS Business Services Interest Coverage Historical Data

The historical data trend for IRIS Business Services'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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IRIS Business Services Interest Coverage Chart

IRIS Business Services Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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1.72

5.49

3.56

7.48

IRIS Business Services Quarterly Data
	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															7.67	-	5.37	6.57	7.87

Competitive Comparison of IRIS Business Services's Interest Coverage

For the Software - Application subindustry, IRIS Business Services'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.

IRIS Business Services's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, IRIS Business Services's Interest Coverage distribution charts can be found below:

* The bar in red indicates where IRIS Business Services's Interest Coverage falls into.

IRIS Business Services 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.

IRIS Business Services'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, IRIS Business Services's Interest Expense was ₹-6.9 Mil. Its Operating Income was ₹51.7 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	51.743	/	-6.915
	=	7.48

IRIS Business Services's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, IRIS Business Services's Interest Expense was ₹-2.9 Mil. Its Operating Income was ₹22.7 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	22.657	/	-2.878
	=	7.87

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

IRIS Business Services (BOM:540735) 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 .

IRIS Business Services Interest Coverage Related Terms

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

IRIS Business Services (BOM:540735) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » IRIS Business Services Ltd (BOM:540735) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

IRIS:India

Address

T-231, International Infortech Park, Tower 2, 3rd Floor, Vashi, Navi Mumbai, MH, IND, 400703

Website

https://www.irisbusiness.com

IRIS Business Services Ltd is a provider of software products for compliance, data, and analytics. It offers products such as IRIS CARBON, a cloud-based filing platform that helps companies and mutual funds to meet their enterprise reporting needs, IRIS FinX, an integrated consolidation application, which enables end-to-end financial reporting by extracting data from various source; IRIS Data Consumption Platform, a structured data repository to access financial and non-financial data of public and private companies and IRIS iDEAL, a regulation reporting application for banks and financial institutions. The group's segments are Collect, Create and Consume. Its geographic segments are Middle Eastern Countries, America (including Canada and South American countries), Europe, India, Others.

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