Indian Oil (NSE:IOC) Interest Coverage : 6.77 (As of Dec. 2023)

View and export this data going back to 1996. Start your Free Trial

What is Indian Oil 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. Indian Oil's Operating Income for the three months ended in Dec. 2023 was ₹121,855 Mil. Indian Oil's Interest Expense for the three months ended in Dec. 2023 was ₹-18,000 Mil. Indian Oil's interest coverage for the quarter that ended in Dec. 2023 was 6.77. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Indian Oil's Interest Coverage or its related term are showing as below:

NSE:IOC' s Interest Coverage Range Over the Past 10 Years
Min: 1.91 Med: 6.99 Max: 10.81
Current: 10.81

NSE:IOC's Interest Coverage is ranked better than
61.53% of 759 companies
in the Oil & Gas industry
Industry Median: 6.75 vs NSE:IOC: 10.81

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

Indian Oil Interest Coverage Historical Data

The historical data trend for Indian Oil'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.

Indian Oil Interest Coverage Chart

Indian Oil Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

7.15

2.14

7.35

8.66

3.90

Indian Oil Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															0.05	0.46	20.89	9.19	6.77

Competitive Comparison of Indian Oil's Interest Coverage

For the Oil & Gas Refining & Marketing subindustry, Indian Oil'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.

Indian Oil's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Indian Oil's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Indian Oil's Interest Coverage falls into.

Indian Oil 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.

Indian Oil'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, Indian Oil's Interest Expense was ₹-66,472 Mil. Its Operating Income was ₹259,136 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹697,899 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	259135.8	/	-66472
	=	3.90

Indian Oil's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Indian Oil's Interest Expense was ₹-18,000 Mil. Its Operating Income was ₹121,855 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	*	121854.5	/	-18000.3
	=	6.77

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

Indian Oil (NSE:IOC) 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 .

Indian Oil Interest Coverage Related Terms

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

Indian Oil (NSE:IOC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Indian Oil Corp Ltd (NSE:IOC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

530965:India

Address

J.B. Tito Marg, 3079/3, Sadiq Nagar, New Delhi, IND, 110 049

Website

https://www.iocl.com

Indian Oil Corp Ltd conducts business across the energy value chain as India's national oil company. The Petroleum Products business generates the majority of the group's revenue. Indian Oil pursues exploration and production opportunities both domestically and internationally. Sale of Petrochemicals , Other operating segment of the Corporation comprises; Gas, Oil & Gas Exploration Activities, Explosives & Cryogenic Business and Wind Mill & Solar Power Generation. A network of pipelines in India not only transport oil from company fields but also to and from its refineries. The pipeline network spans across India and can move various petroleum products. The firm's refinery operations include a host of technologies for processing oil and gas to meet the needs of a diverse client base.