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Supreme Electronics Co (TPE:8112) Interest Coverage : 2.62 (As of Mar. 2024)


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What is Supreme Electronics 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. Supreme Electronics Co's Operating Income for the three months ended in Mar. 2024 was NT$1,289 Mil. Supreme Electronics Co's Interest Expense for the three months ended in Mar. 2024 was NT$-492 Mil. Supreme Electronics Co's interest coverage for the quarter that ended in Mar. 2024 was 2.62. The higher the ratio, the stronger the company's financial strength is.

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

TPE:8112' s Interest Coverage Range Over the Past 10 Years
Min: 2.53   Med: 3.48   Max: 9.89
Current: 3.46


TPE:8112's Interest Coverage is ranked worse than
80.07% of 612 companies
in the Semiconductors industry
Industry Median: 20.035 vs TPE:8112: 3.46

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


Supreme Electronics Co Interest Coverage Historical Data

The historical data trend for Supreme Electronics 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.

Supreme Electronics Co Interest Coverage Chart

Supreme Electronics 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 3.39 5.31 9.89 3.55 3.41

Supreme Electronics 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 1.77 3.35 3.59 4.40 2.62

Competitive Comparison of Supreme Electronics Co's Interest Coverage

For the Semiconductors subindustry, Supreme Electronics 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.


Supreme Electronics Co's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Supreme Electronics Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Supreme Electronics Co's Interest Coverage falls into.



Supreme Electronics 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.

Supreme Electronics 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, Supreme Electronics Co's Interest Expense was NT$-1,340 Mil. Its Operating Income was NT$4,563 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$3,709 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*4563.284/-1340.092
=3.41

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

Here, for the three months ended in Mar. 2024, Supreme Electronics Co's Interest Expense was NT$-492 Mil. Its Operating Income was NT$1,289 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$2,838 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*1288.659/-491.742
=2.62

* 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.


Supreme Electronics Co  (TPE:8112) 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 .


Supreme Electronics Co Interest Coverage Related Terms

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


Supreme Electronics Co (TPE:8112) Business Description

Traded in Other Exchanges
N/A
Address
No. 189 Gangqian Road, 7th Floor, Neihu District, Taipei City, TWN, 11494
Supreme Electronics Co Ltd is engaged in the import and export dealership of a variety of electronic products and components. It manufactures and sells electronic components to computer manufacturers. The products offered by the group include NAND flash & other memory, DRAM, TFT/LCD, Application Processor, System LSI, and other products, of which key revenue is generated from NAND flash & other memory products. Its geographical segments are Hong Kong & China, Taiwan, the United States, and other countries, of which most of the income is generated from Hong Kong & China.

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