DRB-Hicom Bhd (XKLS:1619) Interest Coverage : 1.05 (As of Mar. 2025)

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What is DRB-Hicom Bhd 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. DRB-Hicom Bhd's Operating Income for the three months ended in Mar. 2025 was RM136 Mil. DRB-Hicom Bhd's Interest Expense for the three months ended in Mar. 2025 was RM-130 Mil. DRB-Hicom Bhd's interest coverage for the quarter that ended in Mar. 2025 was 1.05. 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. DRB-Hicom Bhds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for DRB-Hicom Bhd's Interest Coverage or its related term are showing as below:

XKLS:1619' s Interest Coverage Range Over the Past 10 Years
Min: 0.03 Med: 0.72 Max: 1.45
Current: 0.77

XKLS:1619's Interest Coverage is ranked worse than
94.24% of 1042 companies
in the Vehicles & Parts industry
Industry Median: 8.055 vs XKLS:1619: 0.77

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

DRB-Hicom Bhd Interest Coverage Historical Data

The historical data trend for DRB-Hicom Bhd'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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DRB-Hicom Bhd Interest Coverage Chart

DRB-Hicom Bhd Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

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1.45

0.03

0.86

0.84

0.54

DRB-Hicom Bhd 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															1.91	0.60	1.04	0.40	1.05

Competitive Comparison of DRB-Hicom Bhd's Interest Coverage

For the Auto Manufacturers subindustry, DRB-Hicom Bhd'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.

DRB-Hicom Bhd's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, DRB-Hicom Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where DRB-Hicom Bhd's Interest Coverage falls into.

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DRB-Hicom Bhd 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.

DRB-Hicom Bhd'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, DRB-Hicom Bhd's Interest Expense was RM-518 Mil. Its Operating Income was RM280 Mil. And its Long-Term Debt & Capital Lease Obligation was RM6,430 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	280.078	/	-517.593
	=	0.54

DRB-Hicom Bhd's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, DRB-Hicom Bhd's Interest Expense was RM-130 Mil. Its Operating Income was RM136 Mil. And its Long-Term Debt & Capital Lease Obligation was RM6,537 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	136.074	/	-130.177
	=	1.05

The higher the ratio, the stronger the company's Financial Strength is.

DRB-Hicom Bhd (XKLS:1619) 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 .

DRB-Hicom Bhd Interest Coverage Related Terms

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

DRB-Hicom Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » DRB-Hicom Bhd (XKLS:1619) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 2, Jalan Usahawan U1/8, Level 5, Wisma DRB-HICOM, Seksyen U1, Shah Alam, SGR, MYS, 40150

Website

https://www.drb-hicom.com

DRB-Hicom Bhd is an investment holding company. Along with its subsidiaries, the company operates in the following reportable segments: Automotive, Aerospace and Defence, Postal, Banking, Services, and Properties. It generates maximum revenue from the Automotive segment, which is engaged in manufacturing, assembly, vehicle importation, pre-delivery inspection, vehicle leasing, distribution and sale of motor vehicles, motorcycles, and related spare parts and services. Geographically, the company generates a majority of its revenue from its operations within Malaysia, and also has a presence in other markets.

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