Straits Trading Co (SGX:S20) Interest Coverage : 0.57 (As of Dec. 2023)

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What is Straits Trading 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. Straits Trading Co's Operating Income for the six months ended in Dec. 2023 was S$19.3 Mil. Straits Trading Co's Interest Expense for the six months ended in Dec. 2023 was S$-33.8 Mil. Straits Trading Co's interest coverage for the quarter that ended in Dec. 2023 was 0.57. 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. Straits Trading Co Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

SGX:S20' s Interest Coverage Range Over the Past 10 Years
Min: 0.78 Med: 0.98 Max: 2.9
Current: 0.78

SGX:S20's Interest Coverage is ranked worse than
97.99% of 1340 companies
in the Metals & Mining industry
Industry Median: No Debt vs SGX:S20: 0.78

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

Straits Trading Co Interest Coverage Historical Data

The historical data trend for Straits Trading 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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Straits Trading Co Interest Coverage Chart

Straits Trading Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

0.99

1.09

2.90

1.46

0.78

Straits Trading Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.97	2.94	0.35	0.95	0.57

Competitive Comparison of Straits Trading Co's Interest Coverage

For the Other Industrial Metals & Mining subindustry, Straits Trading 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.

Straits Trading Co's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Straits Trading Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Straits Trading Co's Interest Coverage falls into.

Straits Trading 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.

Straits Trading Co's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Straits Trading Co's Interest Expense was S$-74.3 Mil. Its Operating Income was S$57.7 Mil. And its Long-Term Debt & Capital Lease Obligation was S$1,334.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	57.717	/	-74.345
	=	0.78

Straits Trading Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Straits Trading Co's Interest Expense was S$-33.8 Mil. Its Operating Income was S$19.3 Mil. And its Long-Term Debt & Capital Lease Obligation was S$1,334.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	19.315	/	-33.788
	=	0.57

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

Straits Trading Co (SGX:S20) 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 .

Straits Trading Co Interest Coverage Related Terms

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

Straits Trading Co (SGX:S20) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Straits Trading Co Ltd (SGX:S20) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

W2F:Germany

Address

1 Wallich Street, No. 15-01, Guoco Tower, Singapore, SGP, 078881

Website

https://www.straitstrading.com.sg

Straits Trading Co Ltd is an investment company. The company operates in four business segments, Resources segment involved in the smelting of tin concentrates and tin bearing materials, the production of various grades of refined tin metal and the sale and delivery of refined tin metal and by-products, as well as investments in other metals and mineral resources. The Real Estate segment comprises s property investment, sales and leasing, property development, as well as property and real estate fund management. Its Hospitality business includes hotel ownership and hotel management under Far East Hospitality Holdings Pte. Ltd. It derives maximum revenue from the Resources segment. Geographically, it derives a majority of revenue from Malaysia.

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