Shipping Corporation Debts, Should Shareholders Be Worried About

The Shipping Corporation of India Limited (NSE:SCI) does have debt on its balance sheet. But should shareholders be worried about its use of debt?
Shipping Corporation of India has net debt worth 1.9 times EBITDA, which isn’t too much.
But its interest cover looks a bit on the low side, with EBIT at only 4.3 times the interest expense.
A company cannot pay debt with paper profits; it needs cold hard cash. So it’s worth checking how much of that EBIT is backed by free cash flow.

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