Spec Products (ROCO:7718) Interest Coverage : 41.84 (As of Dec. 2024)

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What is Spec Products 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. Spec Products's Operating Income for the three months ended in Dec. 2024 was NT$46 Mil. Spec Products's Interest Expense for the three months ended in Dec. 2024 was NT$-1 Mil. Spec Products's interest coverage for the quarter that ended in Dec. 2024 was 41.84. The higher the ratio, the stronger the company's financial strength is.

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

ROCO:7718' s Interest Coverage Range Over the Past 10 Years
Min: 9.58 Med: 21.45 Max: 63.38
Current: 51.31

ROCO:7718's Interest Coverage is ranked better than
70.88% of 2284 companies
in the Industrial Products industry
Industry Median: 15.855 vs ROCO:7718: 51.31

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

Spec Products Interest Coverage Historical Data

The historical data trend for Spec Products'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.

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Spec Products Interest Coverage Chart

Spec Products Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

9.58

21.45

20.30

27.73

63.38

Spec Products Quarterly Data
	Dec20	Dec21	Dec22	Jun23	Sep23	Dec23	Jun24	Sep24	Dec24
Interest Coverage	Get a 7-Day Free Trial				26.04	-	N/A	59.44	41.84

Competitive Comparison of Spec Products's Interest Coverage

For the Tools & Accessories subindustry, Spec Products'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.

Spec Products's Interest Coverage Distribution in the Industrial Products Industry

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

* The bar in red indicates where Spec Products's Interest Coverage falls into.

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Spec Products 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.

Spec Products'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, Spec Products's Interest Expense was NT$-4 Mil. Its Operating Income was NT$233 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$185 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	233.164	/	-3.679
	=	63.38

Spec Products's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Spec Products's Interest Expense was NT$-1 Mil. Its Operating Income was NT$46 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$185 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	45.649	/	-1.091
	=	41.84

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

Spec Products (ROCO:7718) 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 .

Spec Products Interest Coverage Related Terms

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

Spec Products Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Spec Products Corp (ROCO:7718) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

9F.-4, No. 358, Sec 1, Dongmen Road, East District, Tainan, TWN, 701002

Website

https://www.spec.com.tw

Spec Products Corp is a company which is Integrated Industrial Parts manufacturer and supplier where in they have exported more than ten thousand items made to customers' prints or samples per year to USA, Europe, Japan and China, including cold/ hot forging, turning, plastic ejection and stamping, etc from either on its own or sub-contracted factories.

Spec Products Headlines

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