Vanachai Group PCL (BKK:VNG) Interest Coverage : 2.26 (As of Dec. 2023)

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What is Vanachai Group PCL 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. Vanachai Group PCL's Operating Income for the three months ended in Dec. 2023 was ฿244 Mil. Vanachai Group PCL's Interest Expense for the three months ended in Dec. 2023 was ฿-108 Mil. Vanachai Group PCL's interest coverage for the quarter that ended in Dec. 2023 was 2.26. The higher the ratio, the stronger the company's financial strength is.

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

BKK:VNG' s Interest Coverage Range Over the Past 10 Years
Min: 1.13 Med: 5.57 Max: 13.62
Current: 1.13

BKK:VNG's Interest Coverage is ranked worse than
82.18% of 202 companies
in the Forest Products industry
Industry Median: 6.15 vs BKK:VNG: 1.13

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

Vanachai Group PCL Interest Coverage Historical Data

The historical data trend for Vanachai Group PCL'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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Vanachai Group PCL Interest Coverage Chart

Vanachai Group PCL Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

5.57

3.30

1.13

Vanachai Group PCL Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	-	1.59	1.99	2.26

Competitive Comparison of Vanachai Group PCL's Interest Coverage

For the Lumber & Wood Production subindustry, Vanachai Group PCL'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.

Vanachai Group PCL's Interest Coverage Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Vanachai Group PCL's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Vanachai Group PCL's Interest Coverage falls into.

Vanachai Group PCL 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.

Vanachai Group PCL'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, Vanachai Group PCL's Interest Expense was ฿-422 Mil. Its Operating Income was ฿479 Mil. And its Long-Term Debt & Capital Lease Obligation was ฿5,146 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	478.719	/	-422.449
	=	1.13

Vanachai Group PCL's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Vanachai Group PCL's Interest Expense was ฿-108 Mil. Its Operating Income was ฿244 Mil. And its Long-Term Debt & Capital Lease Obligation was ฿5,146 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	244.405	/	-108.316
	=	2.26

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

Vanachai Group PCL (BKK:VNG) 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 .

Vanachai Group PCL Interest Coverage Related Terms

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

Vanachai Group PCL (BKK:VNG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Vanachai Group PCL (BKK:VNG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

2/1 Wongsawang Road, Wongsawang, Bangsue, Bangkok, THA, 10800

Website

https://www.vanachai.com

Vanachai Group PCL is a building materials company that manufactures and distributes wood-based products. The company's primary products include board panels, particle boards, and wood substitutes. The company creates wood-based goods such as particleboards, medium density fiberboards (MDF boards), Doorskin and melamine laminated particleboards, which are distributed to both domestic and international markets. Vanachai also sells finished products that include melamine doors, door frames, resins, formaldehyde adhesives, and finished flooring. The company generates the vast majority of its revenue in Thailand.