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. Cathay Chemical Works's
Operating Income
for the
three
months ended in Dec. 2025 was NT$-14.8 Mil. Cathay Chemical Works's Interest Expense for the
three
months ended in Dec. 2025 was NT$-0.0 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Cathay Chemical Works's Interest Coverage or its related term are showing as below:
TPE:1713's Interest Coverage is not ranked *
in the Chemicals industry.
Industry Median: 10.18 * Ranked among companies with meaningful Interest Coverage only.
Cathay Chemical Works (TPE:1713) 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 .
Cathay Chemical Works Interest Coverage Related Terms
Cathay Chemical Works Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cathay Chemical Works'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.
TPE:1713 vs LIN, SHW, ECL: Interest Coverage Comparison
For the Specialty Chemicals subindustry, Cathay Chemical Works'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.
Cathay Chemical Works Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cathay Chemical Works's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cathay Chemical Works's Interest Coverage falls into.
Cathay Chemical Works 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:
Cathay Chemical Works did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
Cathay Chemical Works (TPE:1713) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cathay Chemical Works and its competitors. According to the industry distribution chart, Cathay Chemical Works ranks #999999 out of 1234 companies in the Chemicals industry.
Is Cathay Chemical Works' Interest Coverage too high?
Cathay Chemical Works' current Interest Coverage is 0 (At Loss). Based on the distribution chart, Cathay Chemical Works ranks #999999 out of 1234 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Cathay Chemical Works has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cathay Chemical Works' Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Cathay Chemical Works ranks #999999 out of 1234 companies for Interest Coverage. This places Cathay Chemical Works in the lower half of its industry. The industry median Interest Coverage is 10.18. 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,234 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. 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 Cathay Chemical Works and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Chemical Works's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Chemical Works stock overvalued right now?
Based on GuruFocus' analysis, Cathay Chemical Works (TPE:1713) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$42.87, compared to a current price of NT$49.10 — trading 14.5% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Cathay Chemical Works' overall GF Score™ is 76/100 with 6 warning signs to review. 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 Cathay Chemical Works (TPE:1713), the current Interest Coverage is 0 (At Loss) as of Dec. 2025. 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.
Is Cathay Chemical Works (TPE:1713) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Chemical Works stock appears to be overvalued.
The current stock price of NT$49.10 is trading 14.5% above its estimated GF Value™ of NT$42.87.
GuruFocus considers Cathay Chemical Works to be Modestly Overvalued.
Key valuation signals for TPE:1713:
Interest Coverage: 0 (At Loss)
GF Value™: NT$42.87 vs. price of NT$49.10 (14.5% above fair value)
No single metric tells the full story. See the TPE:1713 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Chemical Works Inc Company's mainly business is the manufacture and sale of sodium hydrosulfite, zinc oxide, sodium formaldehyde sulfoxylate, zinc dust and so on. It is the sole operating department. The company has presence in Taiwan, Asia, America, Europe, New Zealand and Australia. The majority of revenue comes from Taiwan.
76GF Score
Get the complete analysis for TPE:1713
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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