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HG Metal Manufacturing (SGX:BTG) Interest Coverage : 7.12 (As of Dec. 2023)


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What is HG Metal Manufacturing 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. HG Metal Manufacturing's Operating Income for the six months ended in Dec. 2023 was S$2.5 Mil. HG Metal Manufacturing's Interest Expense for the six months ended in Dec. 2023 was S$-0.4 Mil. HG Metal Manufacturing's interest coverage for the quarter that ended in Dec. 2023 was 7.12. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for HG Metal Manufacturing's Interest Coverage or its related term are showing as below:

SGX:BTG' s Interest Coverage Range Over the Past 10 Years
Min: 0.39   Med: 2.48   Max: 14.45
Current: 0.5


SGX:BTG's Interest Coverage is ranked worse than
95.47% of 464 companies
in the Steel industry
Industry Median: 5.62 vs SGX:BTG: 0.50

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


HG Metal Manufacturing Interest Coverage Historical Data

The historical data trend for HG Metal Manufacturing'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.

HG Metal Manufacturing Interest Coverage Chart

HG Metal Manufacturing Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.39 14.45 4.46 0.50

HG Metal Manufacturing Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.37 16.72 - - 7.12

Competitive Comparison of HG Metal Manufacturing's Interest Coverage

For the Steel subindustry, HG Metal Manufacturing'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.


HG Metal Manufacturing's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, HG Metal Manufacturing's Interest Coverage distribution charts can be found below:

* The bar in red indicates where HG Metal Manufacturing's Interest Coverage falls into.



HG Metal Manufacturing 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.

HG Metal Manufacturing'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, HG Metal Manufacturing's Interest Expense was S$-1.0 Mil. Its Operating Income was S$0.5 Mil. And its Long-Term Debt & Capital Lease Obligation was S$11.5 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*0.497/-0.987
=0.50

HG Metal Manufacturing's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, HG Metal Manufacturing's Interest Expense was S$-0.4 Mil. Its Operating Income was S$2.5 Mil. And its Long-Term Debt & Capital Lease Obligation was S$11.5 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*2.514/-0.353
=7.12

* 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.

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


HG Metal Manufacturing  (SGX:BTG) 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 .


HG Metal Manufacturing Interest Coverage Related Terms

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


HG Metal Manufacturing (SGX:BTG) Business Description

Traded in Other Exchanges
N/A
Address
28 Jalan Buroh, Singapore, SGP, 619484
HG Metal Manufacturing Ltd is involved in the steel business. The company has business units which include HG Distribution, HG Construction Steel, HG Coupler, and Thread. The operating segment of the company is Trading Segment, Manufacturing Segment, and Others. The trading segment is a supplier of steel products and includes the holding of investments in subsidiaries in the business of steel distribution and provision of industrial steel services. The manufacturing segment produces construction steel products and provides related engineering services. Others include those which do not fall in the trading and manufacturing segment. The majority is from the manufacturing segment. Geographically, the majority is derived from Singapore.