Ares International (TPE:2471) Interest Coverage: 194.88 (As of Sep. 2025) — 12% Below Median

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TPE:2471 Ares International Corp TPE:2471
96 GF Score
Price NT$52.10
GF Value NT$62.99
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Ares International Interest Coverage?

Ares International TPE:2471 -1.33% 96 Interest Coverage is 194.88 as of Sep. 2025, which is 12% below its 10-year median of 221.59. GuruFocus rates TPE:2471 with a GF Score™ of 96/100 and a GF Value™ of NT$62.99 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,712 Software companies, Ares International ranks better than 74.07% 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. Ares International's Operating Income for the three months ended in Sep. 2025 was NT$49.5 Mil. Ares International's Interest Expense for the three months ended in Sep. 2025 was NT$-0.3 Mil. Ares International's interest coverage for the quarter that ended in Sep. 2025 was 194.88. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Ares International Corp has enough cash to cover all of its debt. Its financial situation is stable.

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

TPE:2471' s Interest Coverage Range Over the Past 10 Years
Min: 103.52   Med: 221.59   Max: No Debt
Current: 170.03


TPE:2471's Interest Coverage is ranked better than
74.07% of 1712 companies
in the Software industry
Industry Median: 24.57 vs TPE:2471: 170.03

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


Ares International  (TPE:2471) 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 .


Ares International Interest Coverage Related Terms


Ares International Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ares International'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.

Ares International Interest Coverage Chart

Ares International 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 288.57 178.93 240.87 144.64 202.30

Ares International Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25
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 239.69 553.82 3.54 130.06 194.88

TPE:2471 vs IBM, ACN, FISV: Interest Coverage Comparison

For the Information Technology Services subindustry, Ares International'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.


Ares International Interest Coverage vs Software Industry

For the Software industry and Technology sector, Ares International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ares International's Interest Coverage falls into.


TPE:2471
96GF Score
Ares International Corp TPE:2471
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ares International 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.

Ares International'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, Ares International's Interest Expense was NT$-0.6 Mil. Its Operating Income was NT$115.1 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$5.3 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*115.109/-0.569
=202.30

Ares International's Interest Coverage for the quarter that ended in Sep. 2025 is calculated as

Here, for the three months ended in Sep. 2025, Ares International's Interest Expense was NT$-0.3 Mil. Its Operating Income was NT$49.5 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$7.6 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2025 )/Interest Expense (Q: Sep. 2025 )
=-1*49.5/-0.254
=194.88

* 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 194.88 mean?
Ares International (TPE:2471) has a Interest Coverage of 194.88 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ares International and its competitors. This is 12% below median its historical median of 221.59. Over the past decade, Ares International's Interest Coverage has ranged from 103.52 to 10,000.00. According to the industry distribution chart, Ares International ranks #444 out of 1712 companies in the Software industry, placing it in the top 25.9%.
Is Ares International's Interest Coverage too high?
Ares International's current Interest Coverage of 194.88 is 12% below median its 10-year median of 221.59. Over the past 10 years, this metric has ranged from a low of 103.52 to a high of 10,000.00. The Software industry median Interest Coverage is 24.57. Ares International's value of 194.88 is 693.2% above this industry median. Based on the distribution chart, Ares International ranks #444 out of 1712 companies in the Software industry, which is above the industry midpoint. Overall, Ares International has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ares International's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Ares International ranks #444 out of 1712 companies for Interest Coverage. This puts Ares International in the upper half of its industry. The industry median Interest Coverage is 24.57. Ares International's value of 194.88 is 693.2% above this benchmark. Historically, Ares International's own Interest Coverage has ranged from 103.52 to 10,000.00 over the past decade. While the company's 10-year median is 221.59 vs. the industry median of 24.57, Ares International 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 a Software company?
The median Interest Coverage among Software companies is 24.57, based on 1,712 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. Ares International's current Interest Coverage of 194.88 is 693.2% 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 Ares International and its competitors. For the Software industry, the median Interest Coverage is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares International's current Interest Coverage is 194.88, which is 12% below median its own 10-year median of 221.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares International stock overvalued right now?
Based on GuruFocus' analysis, Ares International (TPE:2471) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$62.99, compared to a current price of NT$52.10 — trading 17.3% below its estimated fair value. The current Interest Coverage is 194.88, which is 12% below median its 10-year median of 221.59 and 693.2% above the Software industry median of 24.57. Ares International's overall GF Score™ is 96/100 with 2 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 Ares International (TPE:2471), the current Interest Coverage is 194.88 as of Sep. 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 Ares International (TPE:2471) Overvalued in 2026?

Based on GuruFocus' analysis, Ares International stock appears to be undervalued. The current stock price of NT$52.10 is trading 17.3% below its estimated GF Value™ of NT$62.99. GuruFocus considers Ares International to be Modestly Undervalued.

Key valuation signals for TPE:2471:

  • Interest Coverage: 194.88 (12% below median its 10-year median of 221.59)
  • GF Value™: NT$62.99 vs. price of NT$52.10 (17.3% below fair value)
  • GF Score™: 96/100 with 2 warning signs
  • Industry Position: 693.2% above the Software median (#444 of 1712)

No single metric tells the full story. See the TPE:2471 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ares International Business Description

Address Zhongshan North Road, 3rd Floor, No. 111, Section 2, Zhongshan District, Taipei, TWN, 104
Ares International Corp is a Taiwan-based company. The company is engaged in the design, sales, lease, maintenance, and technology consultation of computer equipment, internet, and related software, and analysis, design, modification, installation, and maintenance of application software. Its reporting segments include the Commercial segment, Financial business segment, and Project segment. The geographical regions in which the company operates are Asia, Taiwan, America, and Others.
96GF Score

Get the complete analysis for TPE:2471

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

NT$52.10
Price
NT$62.99
GF Value