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Taiwan Surface Mounting Technology (TPE:6278) Interest Coverage : 23.51 (As of Mar. 2025)


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What is Taiwan Surface Mounting Technology 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. Taiwan Surface Mounting Technology's Operating Income for the three months ended in Mar. 2025 was NT$939 Mil. Taiwan Surface Mounting Technology's Interest Expense for the three months ended in Mar. 2025 was NT$-40 Mil. Taiwan Surface Mounting Technology's interest coverage for the quarter that ended in Mar. 2025 was 23.51. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Taiwan Surface Mounting Technology's Interest Coverage or its related term are showing as below:

TPE:6278' s Interest Coverage Range Over the Past 10 Years
Min: 9.13   Med: 28.37   Max: 48.19
Current: 19.44


TPE:6278's Interest Coverage is ranked worse than
51.82% of 604 companies
in the Semiconductors industry
Industry Median: 20 vs TPE:6278: 19.44

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


Taiwan Surface Mounting Technology Interest Coverage Historical Data

The historical data trend for Taiwan Surface Mounting Technology'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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Taiwan Surface Mounting Technology Interest Coverage Chart

Taiwan Surface Mounting Technology 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 48.16 48.19 31.19 13.04 17.24

Taiwan Surface Mounting Technology 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 14.15 20.25 13.87 20.83 23.51

Competitive Comparison of Taiwan Surface Mounting Technology's Interest Coverage

For the Semiconductors subindustry, Taiwan Surface Mounting Technology'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.


Taiwan Surface Mounting Technology's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Taiwan Surface Mounting Technology's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Taiwan Surface Mounting Technology's Interest Coverage falls into.


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Taiwan Surface Mounting Technology 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.

Taiwan Surface Mounting Technology'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, Taiwan Surface Mounting Technology's Interest Expense was NT$-177 Mil. Its Operating Income was NT$3,048 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$2,629 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*3048.018/-176.843
=17.24

Taiwan Surface Mounting Technology's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Taiwan Surface Mounting Technology's Interest Expense was NT$-40 Mil. Its Operating Income was NT$939 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$2,728 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*939.205/-39.947
=23.51

* 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.


Taiwan Surface Mounting Technology  (TPE:6278) 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 .


Taiwan Surface Mounting Technology Interest Coverage Related Terms

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Taiwan Surface Mounting Technology Business Description

Traded in Other Exchanges
N/A
Address
No. 437, Taoying Road, Taoyuan District, Dalinli, Taoyuan, TWN, 330
Taiwan Surface Mounting Technology Corp is mainly engaged in the design, processing, manufacturing, and trading of TFT-LCD panels, general electronic information products, and PCB surface mount packaging. Geographically company generates a majority of its revenue from Mainland China followed by Taiwan, Asia, the United States, Europe, and others. Applications for the company's surface-mount technology include mobile phones, laptops, notebooks, televisions, digital cameras, power supply control boards, and inverter control boards. It also produces touch-panel control boards and micro projector control boards, along with backlighting bars for use in computers, televisions, and portable electronics.

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