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Eurocharm Holdings Co (TPE:5288) Interest Coverage : 51.04 (As of Mar. 2024)


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What is Eurocharm Holdings 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. Eurocharm Holdings Co's Operating Income for the three months ended in Mar. 2024 was NT$267 Mil. Eurocharm Holdings Co's Interest Expense for the three months ended in Mar. 2024 was NT$-5 Mil. Eurocharm Holdings Co's interest coverage for the quarter that ended in Mar. 2024 was 51.04. The higher the ratio, the stronger the company's financial strength is.

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

TPE:5288' s Interest Coverage Range Over the Past 10 Years
Min: 16.65   Med: 94.85   Max: 705.24
Current: 21.73


TPE:5288's Interest Coverage is ranked better than
72.68% of 399 companies
in the Conglomerates industry
Industry Median: 5.11 vs TPE:5288: 21.73

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


Eurocharm Holdings Co Interest Coverage Historical Data

The historical data trend for Eurocharm Holdings 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.

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Eurocharm Holdings Co Interest Coverage Chart

Eurocharm Holdings Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 51.27 36.13 34.37 21.43 16.65

Eurocharm Holdings Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 13.66 10.29 24.95 30.58 51.04

Competitive Comparison of Eurocharm Holdings Co's Interest Coverage

For the Conglomerates subindustry, Eurocharm Holdings 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.


Eurocharm Holdings Co's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Eurocharm Holdings Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Eurocharm Holdings Co's Interest Coverage falls into.



Eurocharm Holdings 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.

Eurocharm Holdings Co's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Eurocharm Holdings Co's Interest Expense was NT$-66 Mil. Its Operating Income was NT$1,093 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$394 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*1093.245/-65.668
=16.65

Eurocharm Holdings Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Eurocharm Holdings Co's Interest Expense was NT$-5 Mil. Its Operating Income was NT$267 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$368 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*267.421/-5.239
=51.04

* 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.


Eurocharm Holdings Co  (TPE:5288) 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 .


Eurocharm Holdings Co Interest Coverage Related Terms

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


Eurocharm Holdings Co (TPE:5288) Business Description

Traded in Other Exchanges
N/A
Address
No. 15, Lane 315, XinShu Road, XinZhuang District, New Taipei City, TWN, 242
Eurocharm Holdings Co Ltd is a metalworking supplier which is engaged in manufacturing as well as selling motorcycle and auto equipment parts, medical equipment, machine parts, and providing assembling services. The company has its base in Taiwan but is also spread from Europe to North America. Its products include Motorcycle Parts, Automotive Parts, Recreational Vehicle Parts, Medical and Healthcare Equipment. The firm generates revenue in the form of a contract-based model with the customer.

Eurocharm Holdings Co (TPE:5288) Headlines

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