Laxmi Goldorna House (NSE:LGHL) Interest Coverage : 1.38 (As of Mar. 2023)

View and export this data going back to 2020. Start your Free Trial

What is Laxmi Goldorna House 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. Laxmi Goldorna House's Operating Income for the six months ended in Mar. 2023 was ₹28.3 Mil. Laxmi Goldorna House's Interest Expense for the six months ended in Mar. 2023 was ₹-20.5 Mil. Laxmi Goldorna House's interest coverage for the quarter that ended in Mar. 2023 was 1.38. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Laxmi Goldorna House's Interest Coverage or its related term are showing as below:

NSE:LGHL' s Interest Coverage Range Over the Past 10 Years
Min: 1.17 Med: 1.61 Max: 4.41
Current: 1.38

NSE:LGHL's Interest Coverage is ranked worse than
87.86% of 758 companies
in the Retail - Cyclical industry
Industry Median: 7.79 vs NSE:LGHL: 1.38

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

Laxmi Goldorna House Interest Coverage Historical Data

The historical data trend for Laxmi Goldorna House'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.

* Premium members only.

Laxmi Goldorna House Interest Coverage Chart

Laxmi Goldorna House Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

1.53

1.61

1.17

2.03

1.38

Laxmi Goldorna House Semi-Annual Data
	Mar17	Mar18	Mar19	Mar20	Mar21	Mar22	Mar23
Interest Coverage	Get a 7-Day Free Trial			1.53	1.61	1.17	2.03	1.38

Competitive Comparison of Laxmi Goldorna House's Interest Coverage

For the Luxury Goods subindustry, Laxmi Goldorna House'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.

Laxmi Goldorna House's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Laxmi Goldorna House's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Laxmi Goldorna House's Interest Coverage falls into.

Laxmi Goldorna House 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.

Laxmi Goldorna House'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, Laxmi Goldorna House's Interest Expense was ₹-20.5 Mil. Its Operating Income was ₹28.3 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹44.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	28.263	/	-20.499
	=	1.38

Laxmi Goldorna House's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the six months ended in Mar. 2023, Laxmi Goldorna House's Interest Expense was ₹-20.5 Mil. Its Operating Income was ₹28.3 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹44.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	28.263	/	-20.499
	=	1.38

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

Laxmi Goldorna House (NSE:LGHL) 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 .

Laxmi Goldorna House Interest Coverage Related Terms

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

Laxmi Goldorna House (NSE:LGHL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Laxmi Goldorna House Ltd (NSE:LGHL) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

M. G. Haveli Road, Laxmi House, Opposite Bandharano Khancho, Manekchowk, Ahmedabad, GJ, IND, 380001

Website

http://laxmilifestyle.co.in

Laxmi Goldorna House Ltd is engaged in manufacturing and trading business of branded gold jewellery and ornaments. Its collection of manufactured product includes gold jewellery with or without studded precious and semi-precious stones. It is also engaged in the real estate business that includes the construction of commercial and residential projects.