Microprogram Information Co (ROCO:7721) Interest Coverage : 90.78 (As of Dec. 2024)

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What is Microprogram Information 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. Microprogram Information Co's Operating Income for the six months ended in Dec. 2024 was NT$72.7 Mil. Microprogram Information Co's Interest Expense for the six months ended in Dec. 2024 was NT$-0.8 Mil. Microprogram Information Co's interest coverage for the quarter that ended in Dec. 2024 was 90.78. 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. Microprogram Information Co has enough cash to cover all of its debt. Its financial situation is stable.

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

ROCO:7721' s Interest Coverage Range Over the Past 10 Years
Min: 2.51 Med: 78.9 Max: 126.39
Current: 126.39

ROCO:7721's Interest Coverage is ranked better than
70.79% of 1674 companies
in the Software industry
Industry Median: 26.06 vs ROCO:7721: 126.39

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

Microprogram Information Co Interest Coverage Historical Data

The historical data trend for Microprogram Information 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.

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Microprogram Information Co Interest Coverage Chart

Microprogram Information Co Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

N/A

2.51

78.90

126.39

Microprogram Information Co Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Interest Coverage	Get a 7-Day Free Trial			13.12	19.04	126.40	174.33	90.78

Competitive Comparison of Microprogram Information Co's Interest Coverage

For the Software - Infrastructure subindustry, Microprogram Information 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.

Microprogram Information Co's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Microprogram Information Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Microprogram Information Co's Interest Coverage falls into.

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Microprogram Information 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.

Microprogram Information 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, Microprogram Information Co's Interest Expense was NT$-1.4 Mil. Its Operating Income was NT$176.4 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$112.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	176.435	/	-1.396
	=	126.39

Microprogram Information Co's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Microprogram Information Co's Interest Expense was NT$-0.8 Mil. Its Operating Income was NT$72.7 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$112.3 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	72.711	/	-0.801
	=	90.78

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

Microprogram Information Co (ROCO:7721) 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 .

Microprogram Information Co Interest Coverage Related Terms

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

Microprogram Information Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Microprogram Information Co (ROCO:7721) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

7th Floor, No. 402, Zhengshi Road, Xitun District, Taichung, TWN, 407

Website

https://www.program.com.tw

Microprogram Information Co is a company that provides industrial IoT technology services and is committed to allowing their clients to have a better and sustainable life. They focus on the three major areas of electronic payment, wireless sensing and cloud data. Through user research, vertical integration of software and hardware technologies, terminal sensor devices, mobile apps, cloud service platforms and core technologies of big data analysis, we assist transportation and finance, retail, manufacturing, bicycle and other industries to innovate and upgrade. They assist you from definition of requirements, concept creation, product development, to service optimization, using the advantages of software and hardware integration technology.

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