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LB Aluminium Bhd (XKLS:9326) Interest Coverage : 9.82 (As of Jan. 2025)


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What is LB Aluminium 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. LB Aluminium Bhd's Operating Income for the three months ended in Jan. 2025 was RM33 Mil. LB Aluminium Bhd's Interest Expense for the three months ended in Jan. 2025 was RM-3 Mil. LB Aluminium Bhd's interest coverage for the quarter that ended in Jan. 2025 was 9.82. The higher the ratio, the stronger the company's financial strength is.

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

XKLS:9326' s Interest Coverage Range Over the Past 10 Years
Min: 0.72   Med: 5.38   Max: 7.73
Current: 7.73


XKLS:9326's Interest Coverage is ranked worse than
83.18% of 1320 companies
in the Metals & Mining industry
Industry Median: No Debt vs XKLS:9326: 7.73

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


LB Aluminium Bhd Interest Coverage Historical Data

The historical data trend for LB Aluminium 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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LB Aluminium Bhd Interest Coverage Chart

LB Aluminium Bhd Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.72 7.08 7.42 5.56 5.85

LB Aluminium Bhd Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 9.35 4.41 8.87 7.82 9.82

Competitive Comparison of LB Aluminium Bhd's Interest Coverage

For the Aluminum subindustry, LB Aluminium 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.


LB Aluminium Bhd's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, LB Aluminium Bhd's Interest Coverage distribution charts can be found below:

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


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LB Aluminium 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.

LB Aluminium Bhd's Interest Coverage for the fiscal year that ended in Apr. 2024 is calculated as

Here, for the fiscal year that ended in Apr. 2024, LB Aluminium Bhd's Interest Expense was RM-9 Mil. Its Operating Income was RM53 Mil. And its Long-Term Debt & Capital Lease Obligation was RM78 Mil.

Interest Coverage=-1* Operating Income (A: Apr. 2024 )/Interest Expense (A: Apr. 2024 )
=-1*53.176/-9.086
=5.85

LB Aluminium Bhd's Interest Coverage for the quarter that ended in Jan. 2025 is calculated as

Here, for the three months ended in Jan. 2025, LB Aluminium Bhd's Interest Expense was RM-3 Mil. Its Operating Income was RM33 Mil. And its Long-Term Debt & Capital Lease Obligation was RM84 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2025 )/Interest Expense (Q: Jan. 2025 )
=-1*32.866/-3.347
=9.82

* 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.


LB Aluminium Bhd  (XKLS:9326) 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 .


LB Aluminium Bhd Interest Coverage Related Terms

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


LB Aluminium Bhd Business Description

Traded in Other Exchanges
N/A
Address
Lot 11, Jalan Perusahaan 1, Kawasan Perusahaan Beranang, Semenyih, Beranang, SGR, MYS, 43700
LB Aluminium Bhd is engaged in the business of manufacturing, marketing, and trading aluminium extrusions. The company reports in two segments: aluminium and property development. Their product acts as a raw material for transport, construction, consumer goods, packaging as well as electrical engineering due to its lightweight, excellent conductor of electricity, and durability in nature. Some of its products and services include aluminium extrusion, aluminium sheets/coils, fitting and accessories, extrusion presses, and anodising. Its geographical segments include Malaysia, Singapore, North America, and Others.

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