Lower interest costs, tax tweaks and healthy balance sheets paint a bright picture. Yet underneath it all lies a question: is the economy signalling a demand problem?
According to BoB Research, Indian industry remains well-positioned to meet its debt obligations, as reflected by the ICR. Despite the marginal dip, the ICR remains high by historical standards
A Moneycontrol analysis of September quarter earnings shows that the interest-coverage ratio (ICR) for large, mid-sized, and smaller firms declined only slightly compared to the June quarter but remained in a safe range of 4-5.
Companies could be hurt by the rising cost of money and input cost pressures that are crimping their profit margins
Small firms have been struggling for the past five years, RBI analysis shows
Around 15-20 percent of developer debt, amounting to at least $10 billion (Rs 70,000 crore) is at the risk of turning sour.
Investors can employ a number of tools to check the health of a company and opt out of financial trouble when they realize companies are piling up high debt, says Nirmal Bang research report.
In the current high interest rate environment, one data point that investors should analyze while looking at the fundamentals of a company is the interest coverage multiple.