Tung Ho Steel Enterprise (TPE:2006) Interest Coverage : 14.95 (As of Mar. 2024)

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What is Tung Ho Steel Enterprise 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. Tung Ho Steel Enterprise's Operating Income for the three months ended in Mar. 2024 was NT$1,406 Mil. Tung Ho Steel Enterprise's Interest Expense for the three months ended in Mar. 2024 was NT$-94 Mil. Tung Ho Steel Enterprise's interest coverage for the quarter that ended in Mar. 2024 was 14.95. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Tung Ho Steel Enterprise's Interest Coverage or its related term are showing as below:

TPE:2006' s Interest Coverage Range Over the Past 10 Years
Min: 5.86 Med: 15.6 Max: 47.27
Current: 14.17

TPE:2006's Interest Coverage is ranked better than
67.45% of 467 companies
in the Steel industry
Industry Median: 6.23 vs TPE:2006: 14.17

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

Tung Ho Steel Enterprise Interest Coverage Historical Data

The historical data trend for Tung Ho Steel Enterprise'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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Tung Ho Steel Enterprise Interest Coverage Chart

Tung Ho Steel Enterprise Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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7.11

23.64

47.27

17.18

13.78

Tung Ho Steel Enterprise 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															13.32	11.34	13.83	17.42	14.95

Competitive Comparison of Tung Ho Steel Enterprise's Interest Coverage

For the Steel subindustry, Tung Ho Steel Enterprise'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.

Tung Ho Steel Enterprise's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Tung Ho Steel Enterprise's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tung Ho Steel Enterprise's Interest Coverage falls into.

Tung Ho Steel Enterprise 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.

Tung Ho Steel Enterprise'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, Tung Ho Steel Enterprise's Interest Expense was NT$-435 Mil. Its Operating Income was NT$5,989 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$1,562 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	5989.178	/	-434.699
	=	13.78

Tung Ho Steel Enterprise's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Tung Ho Steel Enterprise's Interest Expense was NT$-94 Mil. Its Operating Income was NT$1,406 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$1,187 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	1406.38	/	-94.099
	=	14.95

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

Tung Ho Steel Enterprise (TPE:2006) 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 .

Tung Ho Steel Enterprise Interest Coverage Related Terms

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

Tung Ho Steel Enterprise (TPE:2006) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Tung Ho Steel Enterprise Corp (TPE:2006) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Chang-an East Road, 6th Floor, No. 9, Section 1, Taipei, TWN, 10441

Website

https://www.tunghosteel.com

Tung Ho Steel Enterprise Corp is a Taiwan-based company that is primarily engaged in the manufacturing and distribution of steel products. The company's product portfolio includes rebar, which is primarily applied in building projects, including high-rises, factories, public construction, and social welfare initiatives; steel section, which is used in buildings (steel structures) and other construction projects (bridges, ships, vehicles, and so on); and steel plate, which is broadly utilized in factories, logistics warehouses, office and residential buildings, bridges, and other buildings. Rebar and steel section account for the majority of the company's revenue. The company generates most of its sales from the Taiwan domestic market.

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