Edaran Bhd (XKLS:5036) Interest Coverage : 2.00 (As of Mar. 2025)

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What is Edaran 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. Edaran Bhd's Operating Income for the three months ended in Mar. 2025 was RM4.4 Mil. Edaran Bhd's Interest Expense for the three months ended in Mar. 2025 was RM-2.2 Mil. Edaran Bhd's interest coverage for the quarter that ended in Mar. 2025 was 2.00. 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. Edaran Bhd interest coverage is 1.82, which is low.

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

XKLS:5036' s Interest Coverage Range Over the Past 10 Years
Min: 1.82 Med: 3.53 Max: 17.63
Current: 1.82

XKLS:5036's Interest Coverage is ranked worse than
90.79% of 1672 companies
in the Software industry
Industry Median: 26.095 vs XKLS:5036: 1.82

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

Edaran Bhd Interest Coverage Historical Data

The historical data trend for Edaran 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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Edaran Bhd Interest Coverage Chart

Edaran Bhd Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Interest Coverage

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17.63

11.17

3.23

3.65

3.53

Edaran 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															14.67	2.34	1.67	1.53	2.00

Competitive Comparison of Edaran Bhd's Interest Coverage

For the Information Technology Services subindustry, Edaran 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.

Edaran Bhd's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Edaran Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Edaran Bhd's Interest Coverage falls into.

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Edaran 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.

Edaran Bhd's Interest Coverage for the fiscal year that ended in Jun. 2024 is calculated as

Here, for the fiscal year that ended in Jun. 2024, Edaran Bhd's Interest Expense was RM-2.0 Mil. Its Operating Income was RM7.1 Mil. And its Long-Term Debt & Capital Lease Obligation was RM95.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2024 )	/	Interest Expense (A: Jun. 2024 )
	=	-1	*	7.144	/	-2.026
	=	3.53

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

Here, for the three months ended in Mar. 2025, Edaran Bhd's Interest Expense was RM-2.2 Mil. Its Operating Income was RM4.4 Mil. And its Long-Term Debt & Capital Lease Obligation was RM97.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	4.434	/	-2.218
	=	2.00

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

Edaran Bhd (XKLS:5036) 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 .

Edaran Bhd Interest Coverage Related Terms

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

Edaran Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Edaran Bhd (XKLS:5036) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jalan 4/76C, No. 2, Desa Pandan, Kuala Lumpur, SGR, MYS, 55100

Website

https://www.edaran.com

Edaran Bhd is an investment holding company. Along with its subsidiaries, it is engaged in the following reportable segments; Information technology and services, Telecommunications, Investment holding, and Lifestyle. Information technology includes provisioning, installation, commissioning, integration, and maintenance of information technology products and related services. The Telecommunication segment includes provisioning, installation, commissioning, and maintenance of power supply equipment for telecommunication systems and integration and maintenance of telecommunication equipment, and the Lifestyle segment involves lifestyle activities. The company derives its key revenue from the Information technology services segment. Geographically, all of its revenue is derived from Malaysia.

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