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Cheng Loong (TPE:1904) Interest Coverage : 1.73 (As of Dec. 2024)


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What is Cheng Loong 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. Cheng Loong's Operating Income for the three months ended in Dec. 2024 was NT$445 Mil. Cheng Loong's Interest Expense for the three months ended in Dec. 2024 was NT$-257 Mil. Cheng Loong's interest coverage for the quarter that ended in Dec. 2024 was 1.73. 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. Cheng Loong Corp interest coverage is 1.54, which is low.

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

TPE:1904' s Interest Coverage Range Over the Past 10 Years
Min: 1.54   Med: 4.64   Max: 15.38
Current: 1.54


TPE:1904's Interest Coverage is ranked worse than
75.61% of 205 companies
in the Forest Products industry
Industry Median: 5.2 vs TPE:1904: 1.54

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


Cheng Loong Interest Coverage Historical Data

The historical data trend for Cheng Loong'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.

* Premium members only.

Cheng Loong Interest Coverage Chart

Cheng Loong Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.06 15.38 3.56 2.20 1.54

Cheng Loong Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 3.69 1.65 2.28 0.56 1.73

Competitive Comparison of Cheng Loong's Interest Coverage

For the Paper & Paper Products subindustry, Cheng Loong'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.


Cheng Loong's Interest Coverage Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Cheng Loong's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cheng Loong's Interest Coverage falls into.


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Cheng Loong 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.

Cheng Loong'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, Cheng Loong's Interest Expense was NT$-1,012 Mil. Its Operating Income was NT$1,558 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$22,697 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*1557.694/-1012.488
=1.54

Cheng Loong's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Cheng Loong's Interest Expense was NT$-257 Mil. Its Operating Income was NT$445 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$22,697 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*444.844/-257.388
=1.73

* 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.


Cheng Loong  (TPE:1904) 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 .


Cheng Loong Interest Coverage Related Terms

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


Cheng Loong Business Description

Traded in Other Exchanges
N/A
Address
No. 1, Section 1, Min Sheng Road, Banqiao District, New Taipei, TWN
Cheng Loong Corp manufactures and sells a variety of paper products. The company is engaged in the manufacturing and sale of paper products, materials for paper products, corrugated cartons, and related products. It is also engaged in building commercial and residential premises for rent and sale in partnership with construction companies. The company generates a majority of its revenue from its paper products business. Its geographical segments are Taiwan which generates key revenue, China, and other parts of Southeast Asia.

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