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Capital Securities (TPE:6005) Interest Coverage : 0.78 (As of Mar. 2025)


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What is Capital Securities 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. Capital Securities's Operating Income for the three months ended in Mar. 2025 was NT$561 Mil. Capital Securities's Interest Expense for the three months ended in Mar. 2025 was NT$-722 Mil. Capital Securities's interest coverage for the quarter that ended in Mar. 2025 was 0.78. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Capital Securities Corp interest coverage is 2.27, which is low.

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

TPE:6005' s Interest Coverage Range Over the Past 10 Years
Min: 0.62   Med: 3.64   Max: 38.09
Current: 2.27


TPE:6005's Interest Coverage is ranked worse than
80% of 455 companies
in the Capital Markets industry
Industry Median: 20.99 vs TPE:6005: 2.27

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


Capital Securities Interest Coverage Historical Data

The historical data trend for Capital Securities'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.

Capital Securities Interest Coverage Chart

Capital Securities 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 9.58 38.09 0.80 3.26 3.36

Capital Securities 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 5.59 4.53 2.31 1.37 0.78

Competitive Comparison of Capital Securities's Interest Coverage

For the Capital Markets subindustry, Capital Securities'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.


Capital Securities's Interest Coverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Capital Securities's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Capital Securities's Interest Coverage falls into.


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Capital Securities 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.

Capital Securities'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, Capital Securities's Interest Expense was NT$-2,915 Mil. Its Operating Income was NT$9,782 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$4,906 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*9781.563/-2915.41
=3.36

Capital Securities's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Capital Securities's Interest Expense was NT$-722 Mil. Its Operating Income was NT$561 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$10,889 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*561.218/-722.389
=0.78

* 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.


Capital Securities  (TPE:6005) 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 .


Capital Securities Interest Coverage Related Terms

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


Capital Securities Business Description

Traded in Other Exchanges
N/A
Address
No. 156, Minsheng East Road, 11th Floor, Section 3, Songshan District, Taipei, TWN, 10596
Capital Securities Corp is a Taiwan-based financial services company with brokerage underwriting dealing and derivative instrument. It operates into segment such as Brokerage segment that is engaged in brokerage trading, margin trading, and securities lending business. Corporate financing segment: Engaged in providing advisory on initial public offering or to register on the emerging or listed market, securities underwriting and sales, corporate finance, mergers and acquisitions. Dealing segment: Engaged in trading securities and related listed stock instruments on a proprietary basis. Derivative instrument segment: Engaged in the investment, consultancy and issuance of derivative instruments. Futures: Engaged in the business of domestic futures brokerage services.

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