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Cheng Uei Precision Industry Co (TPE:2392) Interest Coverage : 3.19 (As of Mar. 2025)


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What is Cheng Uei Precision Industry Co 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 Uei Precision Industry Co's Operating Income for the three months ended in Mar. 2025 was NT$983 Mil. Cheng Uei Precision Industry Co's Interest Expense for the three months ended in Mar. 2025 was NT$-308 Mil. Cheng Uei Precision Industry Co's interest coverage for the quarter that ended in Mar. 2025 was 3.19. 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 Uei Precision Industry Co Ltd interest coverage is 3.98, which is low.

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

TPE:2392' s Interest Coverage Range Over the Past 10 Years
Min: 0.42   Med: 4.19   Max: 8.38
Current: 3.98


TPE:2392's Interest Coverage is ranked worse than
76.64% of 1601 companies
in the Hardware industry
Industry Median: 13.09 vs TPE:2392: 3.98

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 Uei Precision Industry Co Interest Coverage Historical Data

The historical data trend for Cheng Uei Precision Industry Co'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 Uei Precision Industry Co Interest Coverage Chart

Cheng Uei Precision Industry Co 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 6.74 5.58 8.38 4.78 3.59

Cheng Uei Precision Industry Co Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 0.17 2.56 7.20 3.34 3.19

Competitive Comparison of Cheng Uei Precision Industry Co's Interest Coverage

For the Electronic Components subindustry, Cheng Uei Precision Industry Co'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 Uei Precision Industry Co's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Cheng Uei Precision Industry Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cheng Uei Precision Industry Co's Interest Coverage falls into.


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Cheng Uei Precision Industry Co 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 Uei Precision Industry Co'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 Uei Precision Industry Co's Interest Expense was NT$-980 Mil. Its Operating Income was NT$3,521 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$46,294 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*3520.831/-979.747
=3.59

Cheng Uei Precision Industry Co's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Cheng Uei Precision Industry Co's Interest Expense was NT$-308 Mil. Its Operating Income was NT$983 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$30,341 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*983.123/-307.81
=3.19

* 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 Uei Precision Industry Co  (TPE:2392) 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 Uei Precision Industry Co Interest Coverage Related Terms

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


Cheng Uei Precision Industry Co Business Description

Traded in Other Exchanges
N/A
Address
No.18, Zhongshan Road, Tucheng District, New Taipei City, TWN, 236
Cheng Uei Precision Industry Co Ltd is a technology company that designs, manufactures, and sells connectors, power management devices, cable assemblies, and battery packs. Its main clients are producers of communications devices, computers, and consumer electronics. Its product portfolio consists of cables, connectors, accessories, battery packs, power modules, wireless and Bluetooth products, camera modules, audio products, wearable devices, and gaming products. The company's reportable operating segments include Systems and peripheral products, which derive maximum revenue, 3C component, 3C product retail, Energy service management, and Others. Geographically, it derives maximum revenue from America, followed by Taiwan, China, Vietnam, Hong Kong, India, and other regions.

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