China Airlines (TPE:2610) Interest Coverage: 3.84 (As of Jun. 2026) — Near Median

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Director of Data and Quant Analytics at GuruFocus
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TPE:2610 China Airlines Ltd TPE:2610
87 GF Score
Price NT$19.90
GF Value NT$24.85
Valuation Modestly Undervalued
! 4 Warning Signs
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What is China Airlines Interest Coverage?

China Airlines TPE:2610 -1.00% 87 Interest Coverage is 3.84 as of Jun. 2026, which is 4% above its 10-year median of 3.71. GuruFocus rates TPE:2610 with a GF Score™ of 87/100 and a GF Value™ of NT$24.85 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 845 Transportation companies, China Airlines ranks better than 53.49% 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. China Airlines's Operating Income for the three months ended in Jun. 2026 was NT$2,665 Mil. China Airlines's Interest Expense for the three months ended in Jun. 2026 was NT$-694 Mil. China Airlines's interest coverage for the quarter that ended in Jun. 2026 was 3.84. The higher the ratio, the stronger the company's financial strength is.

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

TPE:2610' s Interest Coverage Range Over the Past 10 Years
Min: 0.71   Med: 3.71   Max: 6.86
Current: 6.32


TPE:2610's Interest Coverage is ranked better than
53.49% of 845 companies
in the Transportation industry
Industry Median: 5.82 vs TPE:2610: 6.32

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


China Airlines  (TPE:2610) 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 .


China Airlines Interest Coverage Related Terms


China Airlines Interest Coverage Historical Data

* Premium members only.

The historical data trend for China Airlines'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.

China Airlines Interest Coverage Chart

China Airlines 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 6.22 1.02 3.89 6.61 6.86

China Airlines Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 7.73 5.70 6.72 8.96 3.84

TPE:2610 vs DAL, UAL, LUV: Interest Coverage Comparison

For the Airlines subindustry, China Airlines'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.


China Airlines Interest Coverage vs Transportation Industry

For the Transportation industry and Industrials sector, China Airlines's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Airlines's Interest Coverage falls into.


TPE:2610
87GF Score
China Airlines Ltd TPE:2610
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China Airlines 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.

China Airlines'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, China Airlines's Interest Expense was NT$-3,037 Mil. Its Operating Income was NT$20,836 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$91,702 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*20836.218/-3037.042
=6.86

China Airlines's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, China Airlines's Interest Expense was NT$-694 Mil. Its Operating Income was NT$2,665 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$90,413 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*2665.275/-693.829
=3.84

* 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 3.84 mean?
China Airlines (TPE:2610) has a Interest Coverage of 3.84 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Airlines and its competitors. This is near median its historical median of 3.71. Over the past decade, China Airlines' Interest Coverage has ranged from 0.71 to 6.86. According to the industry distribution chart, China Airlines ranks #393 out of 845 companies in the Transportation industry, placing it in the top 46.5%.
Is China Airlines' Interest Coverage too high?
China Airlines' current Interest Coverage of 3.84 is near median its 10-year median of 3.71. Over the past 10 years, this metric has ranged from a low of 0.71 to a high of 6.86. The Transportation industry median Interest Coverage is 5.82. China Airlines' value of 3.84 is 34% below this industry median. Based on the distribution chart, China Airlines ranks #393 out of 845 companies in the Transportation industry, which is above the industry midpoint. Overall, China Airlines has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Airlines' Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, China Airlines ranks #393 out of 845 companies for Interest Coverage. This puts China Airlines in the upper half of its industry. The industry median Interest Coverage is 5.82. China Airlines' value of 3.84 is 34% below this benchmark. Historically, China Airlines' own Interest Coverage has ranged from 0.71 to 6.86 over the past decade. While the company's 10-year median is 3.71 vs. the industry median of 5.82, China Airlines has consistently been below 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 Transportation company?
The median Interest Coverage among Transportation companies is 5.82, based on 845 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. China Airlines's current Interest Coverage of 3.84 is 34% below 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 China Airlines and its competitors. For the Transportation industry, the median Interest Coverage is 5.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Airlines's current Interest Coverage is 3.84, which is near median its own 10-year median of 3.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Airlines stock overvalued right now?
Based on GuruFocus' analysis, China Airlines (TPE:2610) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$24.85, compared to a current price of NT$19.90 — trading 19.9% below its estimated fair value. The current Interest Coverage is 3.84, which is near median its 10-year median of 3.71 and 34% below the Transportation industry median of 5.82. China Airlines' overall GF Score™ is 87/100 with 4 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 China Airlines (TPE:2610), the current Interest Coverage is 3.84 as of Jun. 2026. 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 China Airlines (TPE:2610) Overvalued in 2026?

Based on GuruFocus' analysis, China Airlines stock appears to be undervalued. The current stock price of NT$19.90 is trading 19.9% below its estimated GF Value™ of NT$24.85. GuruFocus considers China Airlines to be Modestly Undervalued.

Key valuation signals for TPE:2610:

  • Interest Coverage: 3.84 (near median its 10-year median of 3.71)
  • GF Value™: NT$24.85 vs. price of NT$19.90 (19.9% below fair value)
  • GF Score™: 87/100 with 4 warning signs
  • Industry Position: 34% below the Transportation median (#393 of 845)

No single metric tells the full story. See the TPE:2610 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


China Airlines Business Description

Address No. 1, Hangzhan South Road, Dayuan District, Taoyuan, TWN
China Airlines Ltd provides air transportation services. The company is composed of its flight and non-flight segments. The flight segment is the core business of the firm and offers transport services primarily for passengers and cargo. A vast proportion of the companies revenue is generated from transporting passengers in its flight operating unit. The non-flight segment provides various services such as mail and ground solutions, data processing services to other airlines, aircraft maintenance, and aircraft leasing. It engages in air transportation services for passengers, cargo and others. The company's geographical segments include America, Northeast Asia, Southeast Asia, Europe, Australia, China, and Domestic.
87GF Score

Get the complete analysis for TPE:2610

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

NT$19.90
Price
NT$24.85
GF Value