Song Chuan Precision CoTPE:7788 -3.75%18 Interest Coverage is 4.56 as of Dec. 2025, which is 16% above its 10-year median of 3.93. GuruFocus rates TPE:7788 with a GF Score™ of 18/100. The stock has 3 warning signs investors should review. Among 2,325 Industrial Products companies, Song Chuan Precision Co ranks worse than 65.89% on this metric.
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. Song Chuan Precision Co's
Operating Income
for the
three
months ended in Dec. 2025 was NT$73 Mil. Song Chuan Precision Co's Interest Expense for the
three
months ended in Dec. 2025 was NT$-16 Mil.
Song Chuan Precision Co's interest coverage for the quarter that ended in Dec. 2025 was 4.56.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Song Chuan Precision Co's Interest Coverage or its related term are showing as below:
TPE:7788'
s Interest Coverage Range Over the Past 10 Years
Min: 2.31 Med: 3.93 Max: 7.16
Current: 7.16
TPE:7788's Interest Coverage is ranked worse than 65.89% of 2325
companies
in the Industrial Products industry
Industry Median: 14.8
vs TPE:7788: 7.16
Song Chuan Precision Co (TPE:7788) 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 .
Song Chuan Precision Co Interest Coverage Related Terms
Song Chuan Precision Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Song Chuan 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.
For the Electrical Equipment & Parts subindustry, Song Chuan 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.
Song Chuan Precision Co Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Song Chuan Precision Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Song Chuan Precision Co's Interest Coverage falls into.
Song Chuan 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:
* 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.
Song Chuan Precision Co (TPE:7788) has a Interest Coverage of 4.56 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Song Chuan Precision Co and its competitors. This is 16% above median its historical median of 3.93. Over the past decade, Song Chuan Precision Co's Interest Coverage has ranged from 2.31 to 7.16. According to the industry distribution chart, Song Chuan Precision Co ranks #1532 out of 2325 companies in the Industrial Products industry, placing it in the top 65.9%.
Is Song Chuan Precision Co's Interest Coverage too high?
Song Chuan Precision Co's current Interest Coverage of 4.56 is 16% above median its 10-year median of 3.93. Over the past 10 years, this metric has ranged from a low of 2.31 to a high of 7.16. The Industrial Products industry median Interest Coverage is 14.80. Song Chuan Precision Co's value of 4.56 is 69.2% below this industry median. Based on the distribution chart, Song Chuan Precision Co ranks #1532 out of 2325 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Song Chuan Precision Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Song Chuan Precision Co's Interest Coverage compare to VRT and BE?
According to the Industrial Products industry distribution chart, Song Chuan Precision Co ranks #1532 out of 2325 companies for Interest Coverage. This places Song Chuan Precision Co in the lower half of its industry. The industry median Interest Coverage is 14.80. Song Chuan Precision Co's value of 4.56 is 69.2% below this benchmark. Historically, Song Chuan Precision Co's own Interest Coverage has ranged from 2.31 to 7.16 over the past decade. While the company's 10-year median is 3.93 vs. the industry median of 14.80, Song Chuan Precision Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.80, based on 2,325 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Song Chuan Precision Co's current Interest Coverage of 4.56 is 69.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Song Chuan Precision Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Song Chuan Precision Co's current Interest Coverage is 4.56, which is 16% above median its own 10-year median of 3.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Song Chuan Precision Co stock overvalued right now?
Song Chuan Precision Co (TPE:7788) has a current Interest Coverage of 4.56. The current Interest Coverage is 4.56, which is 16% above median its 10-year median of 3.93 and 69.2% below the Industrial Products industry median of 14.80. Song Chuan Precision Co's overall GF Score™ is 18/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Song Chuan Precision Co (TPE:7788), the current Interest Coverage is 4.56 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Song Chuan Precision Co Ltd is engaged in the research and development, manufacturing, processing, and sales of electronic components such as relays and capacitors. Its product range includes PCB and plug-in automotive relays, PCB miniature power relays, Industrial and general purpose relays, and Safety relays. Its products are used in various applications such as home appliances, automotives, IT products, other applications. The company's segment includes Song Chung, Xiamen, America, Shanghai, and Other segment.
18GF Score
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