Zippy Technology (TPE:2420) Interest Coverage: 32.67 (As of Dec. 2025) — 35% Above Median


TPE:2420 Zippy Technology Corp TPE:2420
73 GF Score
Price NT$60.80
GF Value NT$49.90
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Zippy Technology Interest Coverage?

Zippy Technology TPE:2420 73 Interest Coverage is 32.67 as of Dec. 2025, which is 35% above its 10-year median of 24.13. GuruFocus rates TPE:2420 with a GF Score™ of 73/100 and a GF Value™ of NT$49.90 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,320 Industrial Products companies, Zippy Technology ranks better than 62.2% on this metric.

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. Zippy Technology's Operating Income for the three months ended in Dec. 2025 was NT$189 Mil. Zippy Technology's Interest Expense for the three months ended in Dec. 2025 was NT$-6 Mil. Zippy Technology's interest coverage for the quarter that ended in Dec. 2025 was 32.67. The higher the ratio, the stronger the company's financial strength is.

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

TPE:2420' s Interest Coverage Range Over the Past 10 Years
Min: 14.37   Med: 24.13   Max: 42.47
Current: 27.13


TPE:2420's Interest Coverage is ranked better than
62.2% of 2320 companies
in the Industrial Products industry
Industry Median: 14.88 vs TPE:2420: 27.13

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


Zippy Technology  (TPE:2420) 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 .


Zippy Technology Interest Coverage Related Terms


Zippy Technology Interest Coverage Historical Data

* Premium members only.

The historical data trend for Zippy Technology'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.

Zippy Technology Interest Coverage Chart

Zippy Technology Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.47 38.17 22.81 25.36 27.13

Zippy Technology Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
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 18.89 23.72 29.09 23.16 32.67

TPE:2420 vs VRT, BE: Interest Coverage Comparison

For the Electrical Equipment & Parts subindustry, Zippy Technology'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.


Zippy Technology Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Zippy Technology's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Zippy Technology's Interest Coverage falls into.


TPE:2420
73GF Score
Zippy Technology Corp TPE:2420
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zippy Technology 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.

Zippy Technology's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Zippy Technology's Interest Expense was NT$-24 Mil. Its Operating Income was NT$638 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$962 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*638.456/-23.534
=27.13

Zippy Technology's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, Zippy Technology's Interest Expense was NT$-6 Mil. Its Operating Income was NT$189 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$962 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*189.098/-5.788
=32.67

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 32.67 mean?
Zippy Technology (TPE:2420) has a Interest Coverage of 32.67 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Zippy Technology and its competitors. This is 35% above median its historical median of 24.13. Over the past decade, Zippy Technology's Interest Coverage has ranged from 14.37 to 42.47. According to the industry distribution chart, Zippy Technology ranks #877 out of 2320 companies in the Industrial Products industry, placing it in the top 37.8%.
Is Zippy Technology's Interest Coverage too high?
Zippy Technology's current Interest Coverage of 32.67 is 35% above median its 10-year median of 24.13. Over the past 10 years, this metric has ranged from a low of 14.37 to a high of 42.47. The Industrial Products industry median Interest Coverage is 14.88. Zippy Technology's value of 32.67 is 119.6% above this industry median. Based on the distribution chart, Zippy Technology ranks #877 out of 2320 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Zippy Technology has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zippy Technology's Interest Coverage compare to VRT and BE?
According to the Industrial Products industry distribution chart, Zippy Technology ranks #877 out of 2320 companies for Interest Coverage. This puts Zippy Technology in the upper half of its industry. The industry median Interest Coverage is 14.88. Zippy Technology's value of 32.67 is 119.6% above this benchmark. Historically, Zippy Technology's own Interest Coverage has ranged from 14.37 to 42.47 over the past decade. While the company's 10-year median is 24.13 vs. the industry median of 14.88, Zippy Technology has consistently been above the industry average. 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.88, based on 2,320 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. Zippy Technology's current Interest Coverage of 32.67 is 119.6% above the industry median. 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 Zippy Technology and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zippy Technology's current Interest Coverage is 32.67, which is 35% above median its own 10-year median of 24.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zippy Technology stock overvalued right now?
Based on GuruFocus' analysis, Zippy Technology (TPE:2420) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$49.90, compared to a current price of NT$60.80 — trading 21.8% above its estimated fair value. The current Interest Coverage is 32.67, which is 35% above median its 10-year median of 24.13 and 119.6% above the Industrial Products industry median of 14.88. Zippy Technology's overall GF Score™ is 73/100 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 Zippy Technology (TPE:2420), the current Interest Coverage is 32.67 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 Zippy Technology (TPE:2420) Overvalued in 2026?

Based on GuruFocus' analysis, Zippy Technology stock appears to be overvalued. The current stock price of NT$60.80 is trading 21.8% above its estimated GF Value™ of NT$49.90. GuruFocus considers Zippy Technology to be Modestly Overvalued.

Key valuation signals for TPE:2420:

  • Interest Coverage: 32.67 (35% above median its 10-year median of 24.13)
  • GF Value™: NT$49.90 vs. price of NT$60.80 (21.8% above fair value)
  • GF Score™: 73/100 with 6 warning signs
  • Industry Position: 119.6% above the Industrial Products median (#877 of 2320)

No single metric tells the full story. See the TPE:2420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zippy Technology Business Description

Address No. 50, Minquan Road, 10th Floor, Xindian District, New Taipei City, TWN
Zippy Technology Corp is engaged in the designing, manufacturing and trading of micro switches, power supplies. Its products portfolio includes Water Proof Switches, Basic Micro Switches, Rotary Switches, Push Switches, Low Torque Switches, Slide Switches, Rocker Switches, Hook Switches, Slide DIP Switches, Diagnostic Micro Switches, CRPS Module, CRPS Redundant, PoE Module, 1U Redundant, 1U Redundant Module, Redundant-Slim Type, Redundant Module-Slim Type, 2U Redundant, N+1 Redundant, Mini Redundant, PS2 Redundant, FLEX, 1U Single, 2U Single, ATX-PS2, Open Frame, and Medical. Its segments include Power Supply Division, Switch Division, and others.
73GF Score

Get the complete analysis for TPE:2420

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$60.80
Price
NT$49.90
GF Value