Sapura Industrial Bhd (XKLS:7811) Interest Coverage : 4.48 (As of Oct. 2023)

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What is Sapura Industrial 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. Sapura Industrial Bhd's Operating Income for the three months ended in Oct. 2023 was RM2.8 Mil. Sapura Industrial Bhd's Interest Expense for the three months ended in Oct. 2023 was RM-0.6 Mil. Sapura Industrial Bhd's interest coverage for the quarter that ended in Oct. 2023 was 4.48. The higher the ratio, the stronger the company's financial strength is.

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

XKLS:7811' s Interest Coverage Range Over the Past 10 Years
Min: 0.63 Med: 4.73 Max: 11.85
Current: 5.38

XKLS:7811's Interest Coverage is ranked worse than
59.23% of 1040 companies
in the Vehicles & Parts industry
Industry Median: 7.815 vs XKLS:7811: 5.38

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

Sapura Industrial Bhd Interest Coverage Historical Data

The historical data trend for Sapura Industrial 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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Sapura Industrial Bhd Interest Coverage Chart

Sapura Industrial Bhd Annual Data

Trend

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Interest Coverage

Get a 7-Day Free Trial

1.49

0.63

5.57

Sapura Industrial Bhd Quarterly Data
	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23
Interest Coverage	Get a 7-Day Free Trial															5.08	16.01	3.16	1.91	4.48

Competitive Comparison of Sapura Industrial Bhd's Interest Coverage

For the Auto Parts subindustry, Sapura Industrial 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.

Sapura Industrial Bhd's Interest Coverage Distribution in the Vehicles & Parts Industry

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

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

Sapura Industrial 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.

Sapura Industrial Bhd's Interest Coverage for the fiscal year that ended in Jan. 2023 is calculated as

Here, for the fiscal year that ended in Jan. 2023, Sapura Industrial Bhd's Interest Expense was RM-1.9 Mil. Its Operating Income was RM10.6 Mil. And its Long-Term Debt & Capital Lease Obligation was RM26.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2023 )	/	Interest Expense (A: Jan. 2023 )
	=	-1	*	10.581	/	-1.899
	=	5.57

Sapura Industrial Bhd's Interest Coverage for the quarter that ended in Oct. 2023 is calculated as

Here, for the three months ended in Oct. 2023, Sapura Industrial Bhd's Interest Expense was RM-0.6 Mil. Its Operating Income was RM2.8 Mil. And its Long-Term Debt & Capital Lease Obligation was RM22.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Oct. 2023 )	/	Interest Expense (Q: Oct. 2023 )
	=	-1	*	2.83	/	-0.632
	=	4.48

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

Sapura Industrial Bhd (XKLS:7811) 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 .

Sapura Industrial Bhd Interest Coverage Related Terms

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

Sapura Industrial Bhd (XKLS:7811) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Sapura Industrial Bhd (XKLS:7811) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Lot 2 & 4, Jalan P/11, Seksyen 10,, Kawasan Perindustrian Bangi,, Bandar Baru Bangi,, SGR, MYS, 43650

Website

https://www.sapuraindustrial.com.my

Sapura Industrial Bhd is an automotive components manufacturer. The company is organized into three business segments namely Manufacturing engaged in the manufacture and supply of products for the automotive, electronics, and electrical industries, and the manufacture of butt-weld fittings for oil and gas industries; Investment holding engaged in the holding of investments and provision of management services to subsidiaries; and Others engaged in trading of auto parts in the retail and after-sales market, providing computer-aided design and manufacture of sub-systems and systems for applications in production and testing and other dormant companies. The company earns the majority of its revenue from the Manufacturing segment. The company's operations are carried out solely in Malaysia.

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