Hiap Teck Venture Bhd (XKLS:5072) Interest Coverage : 4.09 (As of Jan. 2024)

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What is Hiap Teck Venture 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. Hiap Teck Venture Bhd's Operating Income for the three months ended in Jan. 2024 was RM23 Mil. Hiap Teck Venture Bhd's Interest Expense for the three months ended in Jan. 2024 was RM-6 Mil. Hiap Teck Venture Bhd's interest coverage for the quarter that ended in Jan. 2024 was 4.09. The higher the ratio, the stronger the company's financial strength is.

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

XKLS:5072' s Interest Coverage Range Over the Past 10 Years
Min: 0.26 Med: 3.22 Max: 11.06
Current: 3.86

XKLS:5072's Interest Coverage is ranked worse than
62.66% of 466 companies
in the Steel industry
Industry Median: 5.995 vs XKLS:5072: 3.86

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

Hiap Teck Venture Bhd Interest Coverage Historical Data

The historical data trend for Hiap Teck Venture 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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Hiap Teck Venture Bhd Interest Coverage Chart

Hiap Teck Venture Bhd Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Interest Coverage

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3.08

1.26

9.96

11.06

0.26

Hiap Teck Venture Bhd Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage	Get a 7-Day Free Trial															0.33	4.93	4.07	2.47	4.09

Competitive Comparison of Hiap Teck Venture Bhd's Interest Coverage

For the Steel subindustry, Hiap Teck Venture 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.

Hiap Teck Venture Bhd's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Hiap Teck Venture Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hiap Teck Venture Bhd's Interest Coverage falls into.

Hiap Teck Venture 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.

Hiap Teck Venture Bhd's Interest Coverage for the fiscal year that ended in Jul. 2023 is calculated as

Here, for the fiscal year that ended in Jul. 2023, Hiap Teck Venture Bhd's Interest Expense was RM-21 Mil. Its Operating Income was RM5 Mil. And its Long-Term Debt & Capital Lease Obligation was RM3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jul. 2023 )	/	Interest Expense (A: Jul. 2023 )
	=	-1	*	5.416	/	-20.673
	=	0.26

Hiap Teck Venture Bhd's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Hiap Teck Venture Bhd's Interest Expense was RM-6 Mil. Its Operating Income was RM23 Mil. And its Long-Term Debt & Capital Lease Obligation was RM3 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	22.627	/	-5.534
	=	4.09

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

Hiap Teck Venture Bhd (XKLS:5072) 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 .

Hiap Teck Venture Bhd Interest Coverage Related Terms

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

Hiap Teck Venture Bhd (XKLS:5072) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Hiap Teck Venture Bhd (XKLS:5072) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Lot 6096, Jalan Haji Abdul Manan, Batu 5 1/2, Off Jalan Meru, Klang, SGR, MYS, 41050

Website

https://www.htgrp.com.my

Hiap Teck Venture Bhd is a Malaysia-based company. It has five segments. The Trading segment is involved in importing, exporting, general dealing, and leasing of steel products, hardware, and building materials; the Manufacturing segment is involved in manufacturing, selling, and renting pipes, hollow sections, scaffolding equipment, and other steel products; the Property and Investment segment is engaged in renting out property and investment holding; the Transportation segment includes a provision of transportation of goods by lorries; and the Mining and exploration segment consists of exploring, contracting and other activities related to the mining, processing, and sale of iron ore. It generates a vast majority of the revenues from the Trading segment within Malaysia.

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