National Aluminium Co (NSE:NATIONALUM) Interest Coverage : 294.92 (As of Dec. 2023)

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What is National Aluminium Co 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. National Aluminium Co's Operating Income for the three months ended in Dec. 2023 was ₹6,193 Mil. National Aluminium Co's Interest Expense for the three months ended in Dec. 2023 was ₹-21 Mil. National Aluminium Co's interest coverage for the quarter that ended in Dec. 2023 was 294.92. 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. National Aluminium Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for National Aluminium Co's Interest Coverage or its related term are showing as below:

NSE:NATIONALUM' s Interest Coverage Range Over the Past 10 Years
Min: 134.08 Med: 284.26 Max: No Debt
Current: 195.07

NSE:NATIONALUM's Interest Coverage is ranked worse than
67.61% of 1340 companies
in the Metals & Mining industry
Industry Median: No Debt vs NSE:NATIONALUM: 195.07

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

National Aluminium Co Interest Coverage Historical Data

The historical data trend for National Aluminium Co'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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National Aluminium Co Interest Coverage Chart

National Aluminium Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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1,028.75

284.26

160.57

134.08

National Aluminium Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															72.93	730.09	187.90	52.72	294.92

Competitive Comparison of National Aluminium Co's Interest Coverage

For the Aluminum subindustry, National Aluminium Co'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.

National Aluminium Co's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, National Aluminium Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where National Aluminium Co's Interest Coverage falls into.

National Aluminium Co 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.

National Aluminium Co'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, National Aluminium Co's Interest Expense was ₹-129 Mil. Its Operating Income was ₹17,323 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹510 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	17322.8	/	-129.2
	=	134.08

National Aluminium Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, National Aluminium Co's Interest Expense was ₹-21 Mil. Its Operating Income was ₹6,193 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	6193.4	/	-21
	=	294.92

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

National Aluminium Co (NSE:NATIONALUM) 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 .

National Aluminium Co Interest Coverage Related Terms

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

National Aluminium Co (NSE:NATIONALUM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » National Aluminium Co Ltd (NSE:NATIONALUM) » Definitions » Interest Coverage

Traded in Other Exchanges

532234:India

Address

Nalco Bhawan, Plot No. P/1, Nayapalli, Bhubaneswar, OR, IND, 751013

Website

https://www.nalcoindia.com

National Aluminium Co Ltd mines, produces and sells aluminum and alumina-based products in two segments: aluminium and chemicals. The company controls all stages of the aluminum process. The firm mines bauxite and refines it into alumina, then smelts most of the alumina into aluminum. The aluminum segment, which generates the majority of revenue, sells aluminum-based products. The chemicals segment sells calcinated alumina and alumina hydrate. The firm also owns and operates multiple power plants throughout India. The majority of National Aluminum's revenue comes from India.

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