Hiap Tong (SGX:5PO) Interest Coverage: 2.06 (As of Mar. 2026) — 17% Above Median

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Director of Data and Quant Analytics at GuruFocus
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What is Hiap Tong Interest Coverage?

Hiap Tong SGX:5PO Interest Coverage is 2.06 as of Mar. 2026, which is 17% above its 10-year median of 1.76. The stock has 5 warning signs investors should review. Among 811 Business Services companies, Hiap Tong ranks worse than 85.08% 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. Hiap Tong's Operating Income for the six months ended in Mar. 2026 was S$1.81 Mil. Hiap Tong's Interest Expense for the six months ended in Mar. 2026 was S$-0.88 Mil. Hiap Tong's interest coverage for the quarter that ended in Mar. 2026 was 2.06. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Hiap Tong Corp Ltd interest coverage is 2.12, which is low.

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

SGX:5PO' s Interest Coverage Range Over the Past 10 Years
Min: 0.17   Med: 1.76   Max: 9.06
Current: 2.12


SGX:5PO's Interest Coverage is ranked worse than
85.08% of 811 companies
in the Business Services industry
Industry Median: 13.52 vs SGX:5PO: 2.12

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


Hiap Tong  (SGX:5PO) 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 .


Hiap Tong Interest Coverage Related Terms


Hiap Tong Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hiap Tong'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.

Hiap Tong Interest Coverage Chart

Hiap Tong Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.23 9.06 2.74 1.73 2.56

Hiap Tong Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 2.74 0.64 1.58 2.16 2.06

SGX:5PO vs URI, SUNB, AER: Interest Coverage Comparison

For the Rental & Leasing Services subindustry, Hiap Tong'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.


Hiap Tong Interest Coverage vs Business Services Industry

For the Business Services industry and Industrials sector, Hiap Tong's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hiap Tong's Interest Coverage falls into.



Hiap Tong 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.

Hiap Tong's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Hiap Tong's Interest Expense was S$-1.87 Mil. Its Operating Income was S$4.79 Mil. And its Long-Term Debt & Capital Lease Obligation was S$16.51 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*4.785/-1.868
=2.56

Hiap Tong's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the six months ended in Mar. 2026, Hiap Tong's Interest Expense was S$-0.88 Mil. Its Operating Income was S$1.81 Mil. And its Long-Term Debt & Capital Lease Obligation was S$16.51 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*1.813/-0.878
=2.06

* 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 2.06 mean?
Hiap Tong (SGX:5PO) has a Interest Coverage of 2.06 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hiap Tong and its competitors. This is 17% above median its historical median of 1.76. Over the past decade, Hiap Tong's Interest Coverage has ranged from 0.17 to 9.06. According to the industry distribution chart, Hiap Tong ranks #690 out of 811 companies in the Business Services industry, placing it in the top 85.1%.
Is Hiap Tong's Interest Coverage too high?
Hiap Tong's current Interest Coverage of 2.06 is 17% above median its 10-year median of 1.76. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 9.06. The Business Services industry median Interest Coverage is 13.52. Hiap Tong's value of 2.06 is 84.8% below this industry median. Based on the distribution chart, Hiap Tong ranks #690 out of 811 companies in the Business Services industry, which is in the bottom quartile relative to peers.
How does Hiap Tong's Interest Coverage compare to URI and SUNB?
According to the Business Services industry distribution chart, Hiap Tong ranks #690 out of 811 companies for Interest Coverage. This places Hiap Tong in the lower half of its industry. The industry median Interest Coverage is 13.52. Hiap Tong's value of 2.06 is 84.8% below this benchmark. Historically, Hiap Tong's own Interest Coverage has ranged from 0.17 to 9.06 over the past decade. While the company's 10-year median is 1.76 vs. the industry median of 13.52, Hiap Tong has consistently been below 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 Business Services company?
The median Interest Coverage among Business Services companies is 13.52, based on 811 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. Hiap Tong's current Interest Coverage of 2.06 is 84.8% below 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 Hiap Tong and its competitors. For the Business Services industry, the median Interest Coverage is 13.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hiap Tong's current Interest Coverage is 2.06, which is 17% above median its own 10-year median of 1.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hiap Tong stock overvalued right now?
Based on GuruFocus' analysis, Hiap Tong (SGX:5PO) is currently considered Fairly Valued. The stock's GF Value™ is S$0.09, compared to a current price of S$0.10 — trading 10% above its estimated fair value. The current Interest Coverage is 2.06, which is 17% above median its 10-year median of 1.76 and 84.8% below the Business Services industry median of 13.52. 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 Hiap Tong (SGX:5PO), the current Interest Coverage is 2.06 as of Mar. 2026. 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.

Hiap Tong Business Description

Address 22 Soon lee Road, Singapore, SGP, 628082
Hiap Tong Corp Ltd is mainly involved in renting cranes, prime movers, heavy machinery, and equipment and trading cranes and heavy equipment. The company's products are used by the marine, petrochemical, and construction industries. It operates in two segments namely lifting and haulage services, and manpower services. The company also provides load test and drop test services for marine offshore and engineering industries. Its geographical segments include Singapore and Malaysia, of which the majority of the revenue comes from Singapore.