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Loop Telecommunication International (TPE:3025) Interest Coverage : 27.47 (As of Mar. 2024)


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What is Loop Telecommunication International 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. Loop Telecommunication International's Operating Income for the three months ended in Mar. 2024 was NT$19.7 Mil. Loop Telecommunication International's Interest Expense for the three months ended in Mar. 2024 was NT$-0.7 Mil. Loop Telecommunication International's interest coverage for the quarter that ended in Mar. 2024 was 27.47. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Loop Telecommunication International Inc has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Loop Telecommunication International's Interest Coverage or its related term are showing as below:

TPE:3025' s Interest Coverage Range Over the Past 10 Years
Min: 6.52   Med: 42.41   Max: 106.08
Current: 79.01


TPE:3025's Interest Coverage is ranked better than
79.8% of 1589 companies
in the Hardware industry
Industry Median: 12.78 vs TPE:3025: 79.01

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


Loop Telecommunication International Interest Coverage Historical Data

The historical data trend for Loop Telecommunication International'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.

Loop Telecommunication International Interest Coverage Chart

Loop Telecommunication International 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 42.52 69.39 29.92 11.63 106.08

Loop Telecommunication International Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 115.44 49.04 35.40 162.39 27.47

Competitive Comparison of Loop Telecommunication International's Interest Coverage

For the Communication Equipment subindustry, Loop Telecommunication International'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.


Loop Telecommunication International's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Loop Telecommunication International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Loop Telecommunication International's Interest Coverage falls into.



Loop Telecommunication International 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.

Loop Telecommunication International'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, Loop Telecommunication International's Interest Expense was NT$-1.8 Mil. Its Operating Income was NT$193.3 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$50.3 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*193.27/-1.822
=106.08

Loop Telecommunication International's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Loop Telecommunication International's Interest Expense was NT$-0.7 Mil. Its Operating Income was NT$19.7 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$49.8 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*19.693/-0.717
=27.47

* 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.


Loop Telecommunication International  (TPE:3025) 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 .


Loop Telecommunication International Interest Coverage Related Terms

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


Loop Telecommunication International (TPE:3025) Business Description

Traded in Other Exchanges
N/A
Address
7 F, NO.8, Hsin Ann Road, Science-Based Industrial Park, Hsinchu, TWN, 300092
Loop Telecommunication International Inc operates in the communication equipment industry. The company is engaged in the R&D, development, production, manufacturing, and sales of user remote line disconnectors, protectors and their components, line reactors and their components, subtitle phones and their components, and smart network resource management multiplexers. The products offered by the firm include multi-service cross-connect, test equipment, wavelength division multiplexing, ethernet access and switch, test stations, and others.

Loop Telecommunication International (TPE:3025) Headlines

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