Engtex Group Bhd (XKLS:5056) Interest Coverage : 2.73 (As of Mar. 2024)

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What is Engtex Group 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. Engtex Group Bhd's Operating Income for the three months ended in Mar. 2024 was RM20 Mil. Engtex Group Bhd's Interest Expense for the three months ended in Mar. 2024 was RM-7 Mil. Engtex Group Bhd's interest coverage for the quarter that ended in Mar. 2024 was 2.73. 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. Engtex Group Bhd interest coverage is 1.65, which is low.

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

XKLS:5056' s Interest Coverage Range Over the Past 10 Years
Min: 1.37 Med: 3.64 Max: 7.35
Current: 1.65

XKLS:5056's Interest Coverage is ranked worse than
94.57% of 129 companies
in the Industrial Distribution industry
Industry Median: 8.49 vs XKLS:5056: 1.65

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

Engtex Group Bhd Interest Coverage Historical Data

The historical data trend for Engtex Group 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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Engtex Group Bhd Interest Coverage Chart

Engtex Group Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.37

2.47

7.35

3.64

1.43

Engtex Group Bhd Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															1.91	1.11	1.47	1.28	2.73

Competitive Comparison of Engtex Group Bhd's Interest Coverage

For the Industrial Distribution subindustry, Engtex Group 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.

Engtex Group Bhd's Interest Coverage Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Engtex Group Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Engtex Group Bhd's Interest Coverage falls into.

Engtex Group 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.

Engtex Group Bhd's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Engtex Group Bhd's Interest Expense was RM-29 Mil. Its Operating Income was RM41 Mil. And its Long-Term Debt & Capital Lease Obligation was RM31 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	40.724	/	-28.57
	=	1.43

Engtex Group Bhd's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Engtex Group Bhd's Interest Expense was RM-7 Mil. Its Operating Income was RM20 Mil. And its Long-Term Debt & Capital Lease Obligation was RM32 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	20.341	/	-7.441
	=	2.73

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

Engtex Group Bhd (XKLS:5056) 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 .

Engtex Group Bhd Interest Coverage Related Terms

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

Engtex Group Bhd (XKLS:5056) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Engtex Group Bhd (XKLS:5056) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Lot 36, Jalan BRP 9/2B, Putra Industrial Park, Bukit Rahman Putra, Sungai Buloh, SGR, MYS, 47000

Website

https://www.engtex.com.my

Engtex Group Bhd is an investment holding company operating in four business segments; The wholesale and distribution segment Includes wholesale and distribution of pipes, valves, fittings, plumbing materials, steel-related products, general hardware products, and construction materials, Manufacturing segment Includes manufacturing and sale of steel and ductile iron pipes and fittings, valves, manhole covers, hydrants, industrial casting products, welded wire mesh, hard-drawn wire, bitumen products, and other steel-related products, Property development segment includes property development and investment activities, and the Hospitality segment Includes the provision of rooms, food and beverage, meeting and function rooms, and other hospitality services.

Engtex Group Bhd (XKLS:5056) Headlines

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