Major Power Technology Co (ROCO:6720) Interest Coverage: 22.48 (As of Dec. 2025) — 68% Below Median

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ROCO:6720 Major Power Technology Co Ltd ROCO:6720
89 GF Score
Price NT$138.50
GF Value NT$117.30
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Major Power Technology Co Interest Coverage?

Major Power Technology Co ROCO:6720 -1.07% 89 Interest Coverage is 22.48 as of Dec. 2025, which is 68% below its 10-year median of 70.49. GuruFocus rates ROCO:6720 with a GF Score™ of 89/100 and a GF Value™ of NT$117.30 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 637 Semiconductors companies, Major Power Technology Co ranks better than 69.39% on this metric.

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. Major Power Technology Co's Operating Income for the three months ended in Dec. 2025 was NT$9.8 Mil. Major Power Technology Co's Interest Expense for the three months ended in Dec. 2025 was NT$-0.4 Mil. Major Power Technology Co's interest coverage for the quarter that ended in Dec. 2025 was 22.48. 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. Major Power Technology Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Major Power Technology Co's Interest Coverage or its related term are showing as below:

ROCO:6720' s Interest Coverage Range Over the Past 10 Years
Min: 21.42   Med: 70.49   Max: No Debt
Current: 72.65


ROCO:6720's Interest Coverage is ranked better than
69.39% of 637 companies
in the Semiconductors industry
Industry Median: 20.5 vs ROCO:6720: 72.65

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


Major Power Technology Co  (ROCO:6720) 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 .


Major Power Technology Co Interest Coverage Related Terms


Major Power Technology Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Major Power Technology 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.

Major Power Technology Co Interest Coverage Chart

Major Power Technology Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 57.62 0.00 21.42 68.32 72.65

Major Power Technology Co Quarterly Data
Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
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 79.24 117.42 108.62 43.91 22.48

ROCO:6720 vs NVDA, AVGO, MU: Interest Coverage Comparison

For the Semiconductors subindustry, Major Power Technology 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.


Major Power Technology Co Interest Coverage vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Major Power Technology Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Major Power Technology Co's Interest Coverage falls into.


ROCO:6720
89GF Score
Major Power Technology Co Ltd ROCO:6720
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Major Power Technology 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.

Major Power Technology Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Major Power Technology Co's Interest Expense was NT$-1.7 Mil. Its Operating Income was NT$121.1 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$29.2 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*121.102/-1.667
=72.65

Major Power Technology Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, Major Power Technology Co's Interest Expense was NT$-0.4 Mil. Its Operating Income was NT$9.8 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$29.2 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*9.801/-0.436
=22.48

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 22.48 mean?
Major Power Technology Co (ROCO:6720) has a Interest Coverage of 22.48 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Major Power Technology Co and its competitors. This is 68% below median its historical median of 70.49. Over the past decade, Major Power Technology Co's Interest Coverage has ranged from 21.42 to 10,000.00. According to the industry distribution chart, Major Power Technology Co ranks #195 out of 637 companies in the Semiconductors industry, placing it in the top 30.6%.
Is Major Power Technology Co's Interest Coverage too high?
Major Power Technology Co's current Interest Coverage of 22.48 is 68% below median its 10-year median of 70.49. Over the past 10 years, this metric has ranged from a low of 21.42 to a high of 10,000.00. The Semiconductors industry median Interest Coverage is 20.50. Major Power Technology Co's value of 22.48 is 9.7% above this industry median. Based on the distribution chart, Major Power Technology Co ranks #195 out of 637 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Major Power Technology Co has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Major Power Technology Co's Interest Coverage compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Major Power Technology Co ranks #195 out of 637 companies for Interest Coverage. This puts Major Power Technology Co in the upper half of its industry. The industry median Interest Coverage is 20.50. Major Power Technology Co's value of 22.48 is 9.7% above this benchmark. Historically, Major Power Technology Co's own Interest Coverage has ranged from 21.42 to 10,000.00 over the past decade. While the company's 10-year median is 70.49 vs. the industry median of 20.50, Major Power Technology Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.50, based on 637 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Major Power Technology Co's current Interest Coverage of 22.48 is 9.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Major Power Technology Co and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Major Power Technology Co's current Interest Coverage is 22.48, which is 68% below median its own 10-year median of 70.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Major Power Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Major Power Technology Co (ROCO:6720) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$117.30, compared to a current price of NT$138.50 — trading 18.1% above its estimated fair value. The current Interest Coverage is 22.48, which is 68% below median its 10-year median of 70.49 and 9.7% above the Semiconductors industry median of 20.50. Major Power Technology Co's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Major Power Technology Co (ROCO:6720), the current Interest Coverage is 22.48 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Major Power Technology Co (ROCO:6720) Overvalued in 2026?

Based on GuruFocus' analysis, Major Power Technology Co stock appears to be overvalued. The current stock price of NT$138.50 is trading 18.1% above its estimated GF Value™ of NT$117.30. GuruFocus considers Major Power Technology Co to be Modestly Overvalued.

Key valuation signals for ROCO:6720:

  • Interest Coverage: 22.48 (68% below median its 10-year median of 70.49)
  • GF Value™: NT$117.30 vs. price of NT$138.50 (18.1% above fair value)
  • GF Score™: 89/100 with 5 warning signs
  • Industry Position: 9.7% above the Semiconductors median (#195 of 637)

No single metric tells the full story. See the ROCO:6720 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Major Power Technology Co Business Description

Address No. 6-1, Duxing Road, 2nd Floor, Hsinchu Science Park, East District, Hsinchu, TWN, 30070
Major Power Technology Co Ltd is a Taiwan-based IC design company involved in the development of Hall sensor and analog Power management components. Its product offerings include Buck, Boost, and Hall IC.
89GF Score

Get the complete analysis for ROCO:6720

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$138.50
Price
NT$117.30
GF Value