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. LOTTE Fine Chemical Co's
Operating Income
for the
three
months ended in Mar. 2026 was ₩32,665 Mil. LOTTE Fine Chemical Co's Interest Expense for the
three
months ended in Mar. 2026 was ₩-584 Mil.
LOTTE Fine Chemical Co's interest coverage for the quarter that ended in Mar. 2026 was 55.96.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for LOTTE Fine Chemical Co's Interest Coverage or its related term are showing as below:
XKRX:004000'
s Interest Coverage Range Over the Past 10 Years
Min: 2.92 Med: 67.42 Max: 707.61
Current: 14.2
XKRX:004000's Interest Coverage is ranked better than 56.09% of 1232
companies
in the Chemicals industry
Industry Median: 10.18
vs XKRX:004000: 14.20
LOTTE Fine Chemical Co (XKRX:004000) 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 .
LOTTE Fine Chemical Co Interest Coverage Related Terms
LOTTE Fine Chemical Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for LOTTE Fine Chemical Co'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.
For the Chemicals subindustry, LOTTE Fine Chemical Co'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.
LOTTE Fine Chemical Co Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, LOTTE Fine Chemical Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where LOTTE Fine Chemical Co's Interest Coverage falls into.
LOTTE Fine Chemical Co 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:
* 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.
LOTTE Fine Chemical Co (XKRX:004000) has a Interest Coverage of 55.96 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on LOTTE Fine Chemical Co and its competitors. This is 17% below median its historical median of 67.42. Over the past decade, LOTTE Fine Chemical Co's Interest Coverage has ranged from 2.92 to 707.61. According to the industry distribution chart, LOTTE Fine Chemical Co ranks #541 out of 1232 companies in the Chemicals industry, placing it in the top 43.9%.
Is LOTTE Fine Chemical Co's Interest Coverage too high?
LOTTE Fine Chemical Co's current Interest Coverage of 55.96 is 17% below median its 10-year median of 67.42. Over the past 10 years, this metric has ranged from a low of 2.92 to a high of 707.61. The Chemicals industry median Interest Coverage is 10.18. LOTTE Fine Chemical Co's value of 55.96 is 449.7% above this industry median. Based on the distribution chart, LOTTE Fine Chemical Co ranks #541 out of 1232 companies in the Chemicals industry, which is above the industry midpoint. Overall, LOTTE Fine Chemical Co has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LOTTE Fine Chemical Co's Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, LOTTE Fine Chemical Co ranks #541 out of 1232 companies for Interest Coverage. This puts LOTTE Fine Chemical Co in the upper half of its industry. The industry median Interest Coverage is 10.18. LOTTE Fine Chemical Co's value of 55.96 is 449.7% above this benchmark. Historically, LOTTE Fine Chemical Co's own Interest Coverage has ranged from 2.92 to 707.61 over the past decade. While the company's 10-year median is 67.42 vs. the industry median of 10.18, LOTTE Fine Chemical Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,232 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LOTTE Fine Chemical Co's current Interest Coverage of 55.96 is 449.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on LOTTE Fine Chemical Co and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LOTTE Fine Chemical Co's current Interest Coverage is 55.96, which is 17% below median its own 10-year median of 67.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LOTTE Fine Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, LOTTE Fine Chemical Co (XKRX:004000) is currently considered Modestly Undervalued. The stock's GF Value™ is ₩49,935.81, compared to a current price of ₩43,350.00 — trading 13.2% below its estimated fair value. The current Interest Coverage is 55.96, which is 17% below median its 10-year median of 67.42 and 449.7% above the Chemicals industry median of 10.18. LOTTE Fine Chemical Co's overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For LOTTE Fine Chemical Co (XKRX:004000), the current Interest Coverage is 55.96 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LOTTE Fine Chemical Co (XKRX:004000) Overvalued in 2026?
Based on GuruFocus' analysis, LOTTE Fine Chemical Co stock appears to be undervalued.
The current stock price of ₩43,350.00 is trading 13.2% below its estimated GF Value™ of ₩49,935.81.
GuruFocus considers LOTTE Fine Chemical Co to be Modestly Undervalued.
Key valuation signals for XKRX:004000:
Interest Coverage: 55.96 (17% below median its 10-year median of 67.42)
GF Value™: ₩49,935.81 vs. price of ₩43,350.00 (13.2% below fair value)
Industry Position: 449.7% above the Chemicals median (#541 of 1232)
No single metric tells the full story. See the XKRX:004000 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LOTTE Fine Chemical Co Ltd manufactures and sells a variety of chemicals, and chemical-based products. The firm organizes itself into three segments based on product type. The chlorine/cellulose segment, which generates the majority of revenue, sells cellulose and caustic soda used to make products for the construction, cement, ceramics, paint, detergent, and personal care industries. The electronic materials segment sells toner for color laser printers, liquid crystal display materials, and lithium nickel cobalt manganese oxide, used in rechargeable batteries. The ammonia segment's products are used in the production of fertilizer, textiles, and pharmaceuticals. The majority of sales come from Asia.
90GF Score
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