Texchem Resources Bhd (XKLS:8702) Interest Coverage : 1.92 (As of Mar. 2025)

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What is Texchem Resources 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. Texchem Resources Bhd's Operating Income for the three months ended in Mar. 2025 was RM10 Mil. Texchem Resources Bhd's Interest Expense for the three months ended in Mar. 2025 was RM-5 Mil. Texchem Resources Bhd's interest coverage for the quarter that ended in Mar. 2025 was 1.92. 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. Texchem Resources Bhd interest coverage is 1.88, which is low.

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

XKLS:8702' s Interest Coverage Range Over the Past 10 Years
Min: 0.8 Med: 1.89 Max: 4.12
Current: 1.88

XKLS:8702's Interest Coverage is ranked worse than
77.46% of 426 companies
in the Conglomerates industry
Industry Median: 5.065 vs XKLS:8702: 1.88

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

Texchem Resources Bhd Interest Coverage Historical Data

The historical data trend for Texchem Resources 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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Texchem Resources Bhd Interest Coverage Chart

Texchem Resources Bhd Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

Get a 7-Day Free Trial

1.21

4.12

3.60

0.80

1.64

Texchem Resources 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															0.90	1.53	1.65	2.37	1.92

Competitive Comparison of Texchem Resources Bhd's Interest Coverage

For the Conglomerates subindustry, Texchem Resources 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.

Texchem Resources Bhd's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Texchem Resources Bhd's Interest Coverage distribution charts can be found below:

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

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Texchem Resources 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.

Texchem Resources 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, Texchem Resources Bhd's Interest Expense was RM-21 Mil. Its Operating Income was RM34 Mil. And its Long-Term Debt & Capital Lease Obligation was RM196 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	34.143	/	-20.809
	=	1.64

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

Here, for the three months ended in Mar. 2025, Texchem Resources Bhd's Interest Expense was RM-5 Mil. Its Operating Income was RM10 Mil. And its Long-Term Debt & Capital Lease Obligation was RM208 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	10.027	/	-5.229
	=	1.92

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

Texchem Resources Bhd (XKLS:8702) 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 .

Texchem Resources Bhd Interest Coverage Related Terms

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

Texchem Resources Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Texchem Resources Bhd (XKLS:8702) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

39 Jalan Sultan Ahmad Shah, Level 18, Menara Boustead Penang, George Town, PNG, MYS, 10050

Website

https://www.texchemgroup.com

Texchem Resources Bhd is an investment holding company. The group has five business divisions namely industrial, Polymer Engineering, Food, Venture Business and Restaurant. The products under industrial segments are plastic resins, rubber/latex chemicals, PVC resins and additives, adhesive chemicals, food ingredients, dyestuff and textile auxiliaries. The polymer division designs new polymer solutions and designs for industries such as data storage industry, semiconductor, consumer electronics and electrical, telecommunications and life science industry. The restaurant division operates restaurant brands such as sushi king, Miraku, and Hoshino Coffee. The Malaysian market contributes majority to the company's revenue.

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