Shihlin Electric & Engineering (TPE:1503) Interest Coverage : 185.99 (As of Mar. 2024)

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What is Shihlin Electric & Engineering 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. Shihlin Electric & Engineering's Operating Income for the three months ended in Mar. 2024 was NT$963 Mil. Shihlin Electric & Engineering's Interest Expense for the three months ended in Mar. 2024 was NT$-5 Mil. Shihlin Electric & Engineering's interest coverage for the quarter that ended in Mar. 2024 was 185.99. 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. Shihlin Electric & Engineering Corp has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Shihlin Electric & Engineering's Interest Coverage or its related term are showing as below:

TPE:1503' s Interest Coverage Range Over the Past 10 Years
Min: 29.33 Med: 35.39 Max: 80.47
Current: 70.49

TPE:1503's Interest Coverage is ranked better than
77.5% of 2298 companies
in the Industrial Products industry
Industry Median: 13.69 vs TPE:1503: 70.49

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

Shihlin Electric & Engineering Interest Coverage Historical Data

The historical data trend for Shihlin Electric & Engineering'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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Shihlin Electric & Engineering Interest Coverage Chart

Shihlin Electric & Engineering Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

37.04

55.32

80.47

62.35

56.38

Shihlin Electric & Engineering Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															69.14	37.02	58.66	61.78	185.99

Competitive Comparison of Shihlin Electric & Engineering's Interest Coverage

For the Electrical Equipment & Parts subindustry, Shihlin Electric & Engineering'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.

Shihlin Electric & Engineering's Interest Coverage Distribution in the Industrial Products Industry

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

* The bar in red indicates where Shihlin Electric & Engineering's Interest Coverage falls into.

Shihlin Electric & Engineering 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.

Shihlin Electric & Engineering'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, Shihlin Electric & Engineering's Interest Expense was NT$-44 Mil. Its Operating Income was NT$2,467 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2467.436	/	-43.762
	=	56.38

Shihlin Electric & Engineering's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Shihlin Electric & Engineering's Interest Expense was NT$-5 Mil. Its Operating Income was NT$963 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$3 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	963.075	/	-5.178
	=	185.99

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

Shihlin Electric & Engineering (TPE:1503) 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 .

Shihlin Electric & Engineering Interest Coverage Related Terms

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

Shihlin Electric & Engineering (TPE:1503) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Shihlin Electric & Engineering Corp (TPE:1503) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 88, Zhongshan North Road, Section 6, 16th Floor, Taipei, TWN, 111

Website

https://www.seec.com.tw

Shihlin Electric & Engineering Corp is a Taiwan-based company The Group is engaged in the manufacture of heavy electrical equipment and machinery and automotive electrical equipment, devices, and related parts The company's product portfolio is categorized into five groups: automobile equipment systems, breaker switchgear and systems, heavy electric systems, and factory automation and system engineering products. The company operates production facilities in Taiwan, mainland China, and Vietnam.

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