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Chunghwa Precision Test Tech Co (ROCO:6510) Interest Coverage : 947.16 (As of Mar. 2025)


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What is Chunghwa Precision Test Tech Co 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. Chunghwa Precision Test Tech Co's Operating Income for the three months ended in Mar. 2025 was NT$250 Mil. Chunghwa Precision Test Tech Co's Interest Expense for the three months ended in Mar. 2025 was NT$-0 Mil. Chunghwa Precision Test Tech Co's interest coverage for the quarter that ended in Mar. 2025 was 947.16. 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. Chunghwa Precision Test Tech Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Chunghwa Precision Test Tech Co's Interest Coverage or its related term are showing as below:

ROCO:6510' s Interest Coverage Range Over the Past 10 Years
Min: 175.53   Med: 935.67   Max: No Debt
Current: 687.9


ROCO:6510's Interest Coverage is ranked better than
88.91% of 604 companies
in the Semiconductors industry
Industry Median: 20 vs ROCO:6510: 687.90

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


Chunghwa Precision Test Tech Co Interest Coverage Historical Data

The historical data trend for Chunghwa Precision Test Tech Co'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.

Chunghwa Precision Test Tech Co Interest Coverage Chart

Chunghwa Precision Test Tech Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 935.67 1,121.20 535.77 - 426.94

Chunghwa Precision Test Tech Co Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 - 91.54 459.59 1,280.57 947.16

Competitive Comparison of Chunghwa Precision Test Tech Co's Interest Coverage

For the Semiconductor Equipment & Materials subindustry, Chunghwa Precision Test Tech Co'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.


Chunghwa Precision Test Tech Co's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Chunghwa Precision Test Tech Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Chunghwa Precision Test Tech Co's Interest Coverage falls into.


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Chunghwa Precision Test Tech Co 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.

Chunghwa Precision Test Tech Co's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Chunghwa Precision Test Tech Co's Interest Expense was NT$-1 Mil. Its Operating Income was NT$489 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$18 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*488.851/-1.145
=426.94

Chunghwa Precision Test Tech Co's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Chunghwa Precision Test Tech Co's Interest Expense was NT$-0 Mil. Its Operating Income was NT$250 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$15 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*250.05/-0.264
=947.16

* 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.


Chunghwa Precision Test Tech Co  (ROCO:6510) 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 .


Chunghwa Precision Test Tech Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Chunghwa Precision Test Tech Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Chunghwa Precision Test Tech Co Business Description

Traded in Other Exchanges
N/A
Address
No. 15, Gongye 3rd Road, Pingzhen District, Taoyuan, TWN, 324
Chunghwa Precision Test Tech Co Ltd is engaged mainly in the testing of semiconductor components, the production of printed circuit boards, and the marketing of electronic products. The company earns revenue from the sale of goods, including semiconductor test components, printed circuit boards, and electronic products. It also earns revenue from the rendering of services such as designing and maintaining semiconductor components, printed circuit boards, and providing after-sales services. It generates maximum revenue from the sale of wafer test boards. Geographically, the company generates maximum revenue from Taiwan, followed by the United States, China, and other regions.

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