Essen Speciality Films (NSE:ESFL) Interest Coverage : 7.41 (As of Mar. 2023)

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What is Essen Speciality Films 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. Essen Speciality Films's Operating Income for the six months ended in Mar. 2023 was ₹151 Mil. Essen Speciality Films's Interest Expense for the six months ended in Mar. 2023 was ₹-20 Mil. Essen Speciality Films's interest coverage for the quarter that ended in Mar. 2023 was 7.41. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Essen Speciality Films's Interest Coverage or its related term are showing as below:

NSE:ESFL' s Interest Coverage Range Over the Past 10 Years
Min: 3.55 Med: 13.6 Max: 20.38
Current: 7.41

NSE:ESFL's Interest Coverage is ranked worse than
55.63% of 320 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 8.9 vs NSE:ESFL: 7.41

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

Essen Speciality Films Interest Coverage Historical Data

The historical data trend for Essen Speciality Films'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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Essen Speciality Films Interest Coverage Chart

Essen Speciality Films Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Interest Coverage

19.78

20.38

3.55

7.41

Essen Speciality Films Semi-Annual Data
	Mar20	Mar21	Mar22	Mar23
Interest Coverage	19.78	20.38	3.55	7.41

Competitive Comparison of Essen Speciality Films's Interest Coverage

For the Furnishings, Fixtures & Appliances subindustry, Essen Speciality Films'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.

Essen Speciality Films's Interest Coverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Essen Speciality Films's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Essen Speciality Films's Interest Coverage falls into.

Essen Speciality Films 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.

Essen Speciality Films'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, Essen Speciality Films's Interest Expense was ₹-20 Mil. Its Operating Income was ₹151 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹32 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	150.642	/	-20.333
	=	7.41

Essen Speciality Films's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the six months ended in Mar. 2023, Essen Speciality Films's Interest Expense was ₹-20 Mil. Its Operating Income was ₹151 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹32 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	150.642	/	-20.333
	=	7.41

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

Essen Speciality Films (NSE:ESFL) 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 .

Essen Speciality Films Interest Coverage Related Terms

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

Essen Speciality Films (NSE:ESFL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Essen Speciality Films Ltd (NSE:ESFL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Survey No. 192, Shapar, Industrial Area, Plot No. A, Veraval, Rajkot, GJ, IND, 360002

Website

https://www.essenspeciality.com

Essen Speciality Films Ltd is a manufacturer and exporter of specialized plastic products in the home improvement and home furnishing industry, to renowned multinational modern trade retailers, such as IKEA, Walmart, Kmart, Bed Bath & Beyond, Rusta, Runsven, Kohl's, Kroger, etc. The product mix of the company makes it a one-of-a-kind manufacturer in the world with ranges in the bath area and accessories, artificial plants & flowers, kitchen & dining, storage & organization, fitness & lifestyle, and outdoor & utility products all under one roof.

Essen Speciality Films (NSE:ESFL) Headlines

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