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Power Master Energy Co (ROCO:6839) Interest Coverage : 1.19 (As of Dec. 2023)


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What is Power Master Energy Co 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. Power Master Energy Co's Operating Income for the six months ended in Dec. 2023 was NT$45 Mil. Power Master Energy Co's Interest Expense for the six months ended in Dec. 2023 was NT$-38 Mil. Power Master Energy Co's interest coverage for the quarter that ended in Dec. 2023 was 1.19. 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. Power Master Energy Co Ltd interest coverage is 1.66, which is low.

The historical rank and industry rank for Power Master Energy Co's Interest Coverage or its related term are showing as below:

ROCO:6839' s Interest Coverage Range Over the Past 10 Years
Min: 1.66   Med: 3   Max: 5.17
Current: 1.66


ROCO:6839's Interest Coverage is ranked worse than
90.59% of 627 companies
in the Semiconductors industry
Industry Median: 19.46 vs ROCO:6839: 1.66

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


Power Master Energy Co Interest Coverage Historical Data

The historical data trend for Power Master Energy 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.

* Premium members only.

Power Master Energy Co Interest Coverage Chart

Power Master Energy Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial 2.44 5.17 2.49 3.51 1.66

Power Master Energy Co Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.26 5.76 1.70 2.48 1.19

Competitive Comparison of Power Master Energy Co's Interest Coverage

For the Solar subindustry, Power Master Energy 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.


Power Master Energy Co's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Power Master Energy Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Power Master Energy Co's Interest Coverage falls into.



Power Master Energy 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:

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.

Power Master Energy Co'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, Power Master Energy Co's Interest Expense was NT$-59 Mil. Its Operating Income was NT$98 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$1,385 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*97.804/-59.011
=1.66

Power Master Energy Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Power Master Energy Co's Interest Expense was NT$-38 Mil. Its Operating Income was NT$45 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$1,385 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*44.937/-37.705
=1.19

* 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.


Power Master Energy Co  (ROCO:6839) 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 .


Power Master Energy Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Power Master Energy Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Power Master Energy Co (ROCO:6839) Business Description

Traded in Other Exchanges
N/A
Address
3, Zhongzheng Road, 8th Floor, No. 651, Xinzhuang District, New Taipei City, TWN
Power Master Energy Co Ltd Formerly Power Master II Holdings Co Ltd is a professional solar power system provider in Taiwan. The business scope is divided into the four main axes of the solar power systems: Engineering Contract EPC, Power Plant Investment, Maintenance Operation Management, and Energy Storage System. It also develops solar photovoltaic components such as modules, brackets, and inverters.

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