Volcano Bhd (XKLS:0232) Interest Coverage : 72.22 (As of Dec. 2023)

View and export this data going back to 2021. Start your Free Trial

What is Volcano Bhd 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. Volcano Bhd's Operating Income for the three months ended in Dec. 2023 was RM0.65 Mil. Volcano Bhd's Interest Expense for the three months ended in Dec. 2023 was RM-0.01 Mil. Volcano Bhd's interest coverage for the quarter that ended in Dec. 2023 was 72.22. 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. Volcano Bhd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Volcano Bhd's Interest Coverage or its related term are showing as below:

XKLS:0232' s Interest Coverage Range Over the Past 10 Years
Min: 93.29 Med: 4042 Max: 8718
Current: 93.29

XKLS:0232's Interest Coverage is ranked better than
80.83% of 2300 companies
in the Industrial Products industry
Industry Median: 13.58 vs XKLS:0232: 93.29

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

Volcano Bhd Interest Coverage Historical Data

The historical data trend for Volcano Bhd'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.

Volcano Bhd Interest Coverage Chart

Volcano Bhd Annual Data

Trend

Dec18

Dec19

Dec20

Interest Coverage

8,718.00

162.63

4,042.00

Volcano Bhd Quarterly Data
	Dec18	Dec19	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Mar23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial								111.67	162.80	51.17	162.80	72.22

Competitive Comparison of Volcano Bhd's Interest Coverage

For the Metal Fabrication subindustry, Volcano Bhd'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.

Volcano Bhd's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Volcano Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Volcano Bhd's Interest Coverage falls into.

Volcano Bhd 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.

Volcano Bhd's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Volcano Bhd's Interest Expense was RM-0.00 Mil. Its Operating Income was RM4.04 Mil. And its Long-Term Debt & Capital Lease Obligation was RM0.00 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2020 )	/	Interest Expense (A: Dec. 2020 )
	=	-1	*	4.042	/	-0.001
	=	4,042.00

Volcano Bhd's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Volcano Bhd's Interest Expense was RM-0.01 Mil. Its Operating Income was RM0.65 Mil. And its Long-Term Debt & Capital Lease Obligation was RM0.08 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	0.65	/	-0.009
	=	72.22

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

Volcano Bhd (XKLS:0232) 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 .

Volcano Bhd Interest Coverage Related Terms

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

Volcano Bhd (XKLS:0232) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Volcano Bhd (XKLS:0232) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1411 Jalan Perusahaan Kawasan, Perusahaan Perai 1, Butterworth, Perai, PNG, MYS, 13600

Website

https://www.volcano.com.my

Volcano Bhd is a manufacturer of parts and components including metal and non-metal nameplates and plastic injection moulded parts. Geographically the company's manufacturing facilities is located in Malaysia and Thailand to serve multinational customers across various industries such as electrical and electronic, automotive, food, furniture, aerospace and label industries. The company operates in Malaysia, Singapore, Thailand, Indonesia, China, USA and other countries. It earns majority of its revenue from Thailand.

Volcano Bhd (XKLS:0232) Headlines

No Headlines