De Neers Tools (NSE:DENEERS) Interest Coverage : 6.87 (As of Mar. 2022)

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What is De Neers Tools 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. De Neers Tools's Operating Income for the six months ended in Mar. 2022 was ₹83.4 Mil. De Neers Tools's Interest Expense for the six months ended in Mar. 2022 was ₹-12.1 Mil. De Neers Tools's interest coverage for the quarter that ended in Mar. 2022 was 6.87. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for De Neers Tools's Interest Coverage or its related term are showing as below:

NSE:DENEERS's Interest Coverage is not ranked ^*
in the Industrial Products industry.
Industry Median: 13.69
* Ranked among companies with meaningful Interest Coverage only.

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

De Neers Tools Interest Coverage Historical Data

The historical data trend for De Neers Tools'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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De Neers Tools Interest Coverage Chart

De Neers Tools Annual Data

Trend

Mar20

Mar21

Mar22

Interest Coverage

1.38

1.53

6.87

De Neers Tools Semi-Annual Data
	Mar20	Mar21	Mar22
Interest Coverage	1.38	1.53	6.87

Competitive Comparison of De Neers Tools's Interest Coverage

For the Tools & Accessories subindustry, De Neers Tools'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.

De Neers Tools's Interest Coverage Distribution in the Industrial Products Industry

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

* The bar in red indicates where De Neers Tools's Interest Coverage falls into.

De Neers Tools 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.

De Neers Tools's Interest Coverage for the fiscal year that ended in Mar. 2022 is calculated as

Here, for the fiscal year that ended in Mar. 2022, De Neers Tools's Interest Expense was ₹-12.1 Mil. Its Operating Income was ₹83.4 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹243.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2022 )	/	Interest Expense (A: Mar. 2022 )
	=	-1	*	83.388	/	-12.142
	=	6.87

De Neers Tools's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the six months ended in Mar. 2022, De Neers Tools's Interest Expense was ₹-12.1 Mil. Its Operating Income was ₹83.4 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹243.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2022 )	/	Interest Expense (Q: Mar. 2022 )
	=	-1	*	83.388	/	-12.142
	=	6.87

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

De Neers Tools (NSE:DENEERS) 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 .

De Neers Tools Interest Coverage Related Terms

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

De Neers Tools (NSE:DENEERS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » De Neers Tools Ltd (NSE:DENEERS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Plot No. 468, Ground Floor, Industrial Area, Patparganj, Delhi, IND, 110092

Website

https://www.deneerstools.com

De Neers Tools Ltd is a hand tools suppliers in India. The company aims to provide hand tools of the utmost quality that are worth Its customers' money. It continuously works on innovation and research to develop products that can bring a kind of revolution in the hand tool industry. Its products includes Spanners, Wrenches, Pliers, Cutters, Allen keys, Hammers, sockets, Screw Drivers, Tool Kits, Tool Cabinets, Trolleys, etc. It is also specialized in providing Safety Tools like Non-Sparking Tools, Insulated Steel Tools, Non-Sparking Insulated Tools, Stainless Steel Anti-magnetic Tools, and Titanium Tools, with other range of hand tools. The company is predominantly engaged in wholesale trading of hardware & tools which constitutes a single business segment.

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