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Largan Precision Co (TPE:3008) Interest Coverage : 13,921.93 (As of Dec. 2024)


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What is Largan Precision 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. Largan Precision Co's Operating Income for the three months ended in Dec. 2024 was NT$8,325 Mil. Largan Precision Co's Interest Expense for the three months ended in Dec. 2024 was NT$-1 Mil. Largan Precision Co's interest coverage for the quarter that ended in Dec. 2024 was 13,921.93. 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. Largan Precision Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TPE:3008' s Interest Coverage Range Over the Past 10 Years
Min: No Debt   Med: 12646.35   Max: 9218210.67
Current: 19256.84


TPE:3008's Interest Coverage is ranked better than
99.81% of 1594 companies
in the Hardware industry
Industry Median: 13.17 vs TPE:3008: 19256.84

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


Largan Precision Co Interest Coverage Historical Data

The historical data trend for Largan Precision 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.

Largan Precision Co Interest Coverage Chart

Largan Precision 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 13,787.14 11,888.60 11,536.82 15,589.92 19,256.84

Largan Precision Co 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 35,340.79 20,510.88 16,117.29 36,503.40 13,921.93

Competitive Comparison of Largan Precision Co's Interest Coverage

For the Electronic Components subindustry, Largan Precision 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.


Largan Precision Co's Interest Coverage Distribution in the Hardware Industry

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

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


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Largan Precision 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.

Largan Precision 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, Largan Precision Co's Interest Expense was NT$-1 Mil. Its Operating Income was NT$24,033 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$40 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*24032.531/-1.248
=19,256.84

Largan Precision Co's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Largan Precision Co's Interest Expense was NT$-1 Mil. Its Operating Income was NT$8,325 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$40 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*8325.316/-0.598
=13,921.93

* 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.


Largan Precision Co  (TPE:3008) 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 .


Largan Precision Co Interest Coverage Related Terms

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


Largan Precision Co Business Description

Traded in Other Exchanges
N/A
Address
No. 11, Jingke Road, Nantun District, Taichung, TWN, 40852
Largan Precision is the leader in optical lens technology and the world's largest handset lensmaker by value. The company boasts almost 30 years of experience in the production of optical lenses, namely plastic aspherical lenses, which are widely used to manufacture smartphone cameras. It is a major supplier of high-end handset camera lenses to global smartphone brands such as Apple and Samsung. The firm also produces optical lenses for various applications such as for automobiles, digital cameras, and extended reality headsets. Largan was co-founded in 1987 by Scott Lin, whose son Adam Lin serves as the current CEO and chair. Largan is headquartered and mainly operates in Taichung City, Taiwan, and employs around 8,000 people.

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