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Tan Chong Motor Holdings Bhd (XKLS:4405) Interest Coverage : 1.09 (As of Mar. 2025)


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What is Tan Chong Motor Holdings 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. Tan Chong Motor Holdings Bhd's Operating Income for the three months ended in Mar. 2025 was RM20 Mil. Tan Chong Motor Holdings Bhd's Interest Expense for the three months ended in Mar. 2025 was RM-19 Mil. Tan Chong Motor Holdings Bhd's interest coverage for the quarter that ended in Mar. 2025 was 1.09. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Tan Chong Motor Holdings Bhd's Interest Coverage or its related term are showing as below:


XKLS:4405's Interest Coverage is not ranked *
in the Vehicles & Parts industry.
Industry Median: 8.055
* Ranked among companies with meaningful Interest Coverage only.

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


Tan Chong Motor Holdings Bhd Interest Coverage Historical Data

The historical data trend for Tan Chong Motor Holdings 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.

* Premium members only.

Tan Chong Motor Holdings Bhd Interest Coverage Chart

Tan Chong Motor Holdings Bhd 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 - 1.13 0.52 - -

Tan Chong Motor Holdings 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 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 - - - - 1.09

Competitive Comparison of Tan Chong Motor Holdings Bhd's Interest Coverage

For the Auto Manufacturers subindustry, Tan Chong Motor Holdings 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.


Tan Chong Motor Holdings Bhd's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Tan Chong Motor Holdings Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tan Chong Motor Holdings Bhd's Interest Coverage falls into.


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Tan Chong Motor Holdings 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.

Tan Chong Motor Holdings 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, Tan Chong Motor Holdings Bhd's Interest Expense was RM-71 Mil. Its Operating Income was RM-138 Mil. And its Long-Term Debt & Capital Lease Obligation was RM375 Mil.

Tan Chong Motor Holdings Bhd did not have earnings to cover the interest expense.

Tan Chong Motor Holdings Bhd's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Tan Chong Motor Holdings Bhd's Interest Expense was RM-19 Mil. Its Operating Income was RM20 Mil. And its Long-Term Debt & Capital Lease Obligation was RM361 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*20.406/-18.764
=1.09

* 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.


Tan Chong Motor Holdings Bhd  (XKLS:4405) 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 .


Tan Chong Motor Holdings Bhd Interest Coverage Related Terms

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


Tan Chong Motor Holdings Bhd Business Description

Traded in Other Exchanges
N/A
Address
62-68 Jalan Sultan Azlan Shah, Wilayah Persekutuan, Kuala Lumpur, MYS, 51200
Tan Chong Motor Holdings Bhd is an automotive manufacturer based in Malaysia. It conducts its business through three segments, namely, Vehicle assembly, manufacturing, distribution and after-sales services segment, Financial Services, and other operations. The Vehicles assembly, manufacturing, distribution and after-sales services segment is its core business and is a majority revenue generator. It is focused on the assembly and distribution of passenger and commercial vehicles, automotive workshop services, distribution of automotive spare parts, and the manufacturing of automotive parts. The Financial Services segment provides hire purchase financing, personal loans, and insurance agency services, and the other operations segment is engaged in property and investment holding activities.

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