Niche-Tech Semiconductor Materials (HKSE:08490) Interest Coverage : 2.66 (As of Dec. 2023)

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What is Niche-Tech Semiconductor Materials 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. Niche-Tech Semiconductor Materials's Operating Income for the three months ended in Dec. 2023 was HK$4.3 Mil. Niche-Tech Semiconductor Materials's Interest Expense for the three months ended in Dec. 2023 was HK$-1.6 Mil. Niche-Tech Semiconductor Materials's interest coverage for the quarter that ended in Dec. 2023 was 2.66. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Niche-Tech Semiconductor Materials's Interest Coverage or its related term are showing as below:

HKSE:08490' s Interest Coverage Range Over the Past 10 Years
Min: 0.38 Med: 2.16 Max: 9.14
Current: 2.39

HKSE:08490's Interest Coverage is ranked worse than
85.51% of 621 companies
in the Semiconductors industry
Industry Median: 20.85 vs HKSE:08490: 2.39

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

Niche-Tech Semiconductor Materials Interest Coverage Historical Data

The historical data trend for Niche-Tech Semiconductor Materials'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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Niche-Tech Semiconductor Materials Interest Coverage Chart

Niche-Tech Semiconductor Materials Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.14

9.14

7.18

2.39

Niche-Tech Semiconductor Materials 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															1.62	6.02	1.09	1.45	2.66

Competitive Comparison of Niche-Tech Semiconductor Materials's Interest Coverage

For the Semiconductor Equipment & Materials subindustry, Niche-Tech Semiconductor Materials'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.

Niche-Tech Semiconductor Materials's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Niche-Tech Semiconductor Materials's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Niche-Tech Semiconductor Materials's Interest Coverage falls into.

Niche-Tech Semiconductor Materials 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.

Niche-Tech Semiconductor Materials's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Niche-Tech Semiconductor Materials's Interest Expense was HK$-3.9 Mil. Its Operating Income was HK$9.4 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$22.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	9.41	/	-3.943
	=	2.39

Niche-Tech Semiconductor Materials's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Niche-Tech Semiconductor Materials's Interest Expense was HK$-1.6 Mil. Its Operating Income was HK$4.3 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$22.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	4.308	/	-1.621
	=	2.66

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

Niche-Tech Semiconductor Materials (HKSE:08490) 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 .

Niche-Tech Semiconductor Materials Interest Coverage Related Terms

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Niche-Tech Semiconductor Materials (HKSE:08490) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Niche-Tech Semiconductor Materials Ltd (HKSE:08490) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Unit 208, 2nd Floor, Lakeside 1, Phase Two, Hong Kong Science Park, Pak Shek Kok, New Territories, Hong Kong, HKG

Website

https://www.nichetech.com.hk

Niche-Tech Semiconductor Materials Ltd is a semiconductor packaging materials manufacturer. Its products are divided into Bonding Wires, Encapsulants, and Others. Bonding wires include developing, manufacturing, and supply of fine and ultra-fine Bonding Wires such as gold, gold alloy, silver alloy, aluminum, silicone aluminum, copper, copper alloy, and palladium-coated copper. Other products mainly include solder wire, solder bar, solder paste, and bonding tools for PCB application, and Encapsulant includes high-purity liquid glob-top epoxy for COB applications and others. The company generates a majority of its revenue from Bonding wires, and geographically from the People's Republic of China.

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