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Winbond Electronics (TPE:2344) Interest Coverage : 0 (At Loss) (As of Dec. 2024)


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What is Winbond Electronics 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. Winbond Electronics's Operating Income for the three months ended in Dec. 2024 was NT$-773 Mil. Winbond Electronics's Interest Expense for the three months ended in Dec. 2024 was NT$-297 Mil. did not have earnings to cover the interest expense. 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. Winbond Electronics Corps 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 Winbond Electronics's Interest Coverage or its related term are showing as below:

TPE:2344' s Interest Coverage Range Over the Past 10 Years
Min: 0.43   Med: 19.85   Max: 172.69
Current: 0.43


TPE:2344's Interest Coverage is ranked worse than
97.88% of 612 companies
in the Semiconductors industry
Industry Median: 19.43 vs TPE:2344: 0.43

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


Winbond Electronics Interest Coverage Historical Data

The historical data trend for Winbond Electronics'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.

Winbond Electronics Interest Coverage Chart

Winbond Electronics 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 5.95 89.78 172.69 - 0.43

Winbond Electronics 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 - - 3.88 0.88 -

Competitive Comparison of Winbond Electronics's Interest Coverage

For the Semiconductors subindustry, Winbond Electronics'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.


Winbond Electronics's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Winbond Electronics's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Winbond Electronics's Interest Coverage falls into.


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Winbond Electronics 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.

Winbond Electronics'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, Winbond Electronics's Interest Expense was NT$-1,207 Mil. Its Operating Income was NT$519 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$32,932 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*519.059/-1206.792
=0.43

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

Here, for the three months ended in Dec. 2024, Winbond Electronics's Interest Expense was NT$-297 Mil. Its Operating Income was NT$-773 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$32,932 Mil.

Winbond Electronics 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.

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


Winbond Electronics  (TPE:2344) 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 .


Winbond Electronics Interest Coverage Related Terms

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


Winbond Electronics Business Description

Traded in Other Exchanges
N/A
Address
No. 8, Keya 1st Road, Daya District, Taichung, TWN
Winbond Electronics Corp is engaged in the design, development, manufacture, and marketing of very large scale integration (VLSI) integrated circuits (ICs) used in a variety of microelectronic applications. In addition, it offers customised memory solutions like Mobile RAM and Specialty DRAM, and core storage flash memory products. The company's operating segments are Customized Memory Solution product, Flash Memory product, and Logic IC product. Maximum revenue is generated from the Logic IC product segment, which engages mainly in the manufacturing, selling, researching, designing, and after-sales service of Logic IC products. Geographically, the company generates maximum revenue from Asia, followed by America, Europe, and Other regions.

Winbond Electronics Headlines

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