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Far EasTone Telecommunications Co (TPE:4904) Interest Coverage : 20.10 (As of Mar. 2025)


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What is Far EasTone Telecommunications 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. Far EasTone Telecommunications Co's Operating Income for the three months ended in Mar. 2025 was NT$4,382 Mil. Far EasTone Telecommunications Co's Interest Expense for the three months ended in Mar. 2025 was NT$-218 Mil. Far EasTone Telecommunications Co's interest coverage for the quarter that ended in Mar. 2025 was 20.10. The higher the ratio, the stronger the company's financial strength is.

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

TPE:4904' s Interest Coverage Range Over the Past 10 Years
Min: 15.73   Med: 21.96   Max: 34.78
Current: 17.98


TPE:4904's Interest Coverage is ranked better than
78.91% of 294 companies
in the Telecommunication Services industry
Industry Median: 4.715 vs TPE:4904: 17.98

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


Far EasTone Telecommunications Co Interest Coverage Historical Data

The historical data trend for Far EasTone Telecommunications 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.

Far EasTone Telecommunications Co Interest Coverage Chart

Far EasTone Telecommunications 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 16.31 15.73 20.17 17.86 16.77

Far EasTone Telecommunications 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 15.21 17.07 17.22 17.66 20.10

Competitive Comparison of Far EasTone Telecommunications Co's Interest Coverage

For the Telecom Services subindustry, Far EasTone Telecommunications 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.


Far EasTone Telecommunications Co's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Far EasTone Telecommunications Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Far EasTone Telecommunications Co's Interest Coverage falls into.


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Far EasTone Telecommunications 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.

Far EasTone Telecommunications 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, Far EasTone Telecommunications Co's Interest Expense was NT$-941 Mil. Its Operating Income was NT$15,786 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$50,548 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*15786.374/-941.35
=16.77

Far EasTone Telecommunications Co's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Far EasTone Telecommunications Co's Interest Expense was NT$-218 Mil. Its Operating Income was NT$4,382 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$42,639 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*4381.906/-218.01
=20.10

* 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.


Far EasTone Telecommunications Co  (TPE:4904) 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 .


Far EasTone Telecommunications Co Interest Coverage Related Terms

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Far EasTone Telecommunications Co Business Description

Traded in Other Exchanges
N/A
Address
No. 207, Tun-Hwa South Road, 28th Floor, Section 2, Taipei, TWN
Far EasTone Telecommunications Co Ltd is a telecommunications company. It provides mobile telecommunications services (including voice and internet services), international simple resale services, digital value-added services, sale of cellular phone equipment and accessories and enterprise information and communication integration services, etc. The company operating segments are Mobile services business, Fixed-line services business, Sales business. The company generates the vast majority of its revenue in Taiwan.

Far EasTone Telecommunications Co Headlines

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