Kim Heng (SGX:5G2) Interest Coverage : 4.64 (As of Dec. 2023)

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What is Kim Heng 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. Kim Heng's Operating Income for the six months ended in Dec. 2023 was S$8.1 Mil. Kim Heng's Interest Expense for the six months ended in Dec. 2023 was S$-1.8 Mil. Kim Heng's interest coverage for the quarter that ended in Dec. 2023 was 4.64. 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. Kim Heng Ltd interest coverage is 4.14, which is low.

The historical rank and industry rank for Kim Heng's Interest Coverage or its related term are showing as below:

SGX:5G2' s Interest Coverage Range Over the Past 10 Years
Min: 1.22 Med: 4.14 Max: 21.05
Current: 4.14

SGX:5G2's Interest Coverage is ranked worse than
63.77% of 759 companies
in the Oil & Gas industry
Industry Median: 6.56 vs SGX:5G2: 4.14

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

Kim Heng Interest Coverage Historical Data

The historical data trend for Kim Heng'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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Kim Heng Interest Coverage Chart

Kim Heng Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.22

1.65

4.54

4.14

Kim Heng Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															5.78	4.50	4.57	3.50	4.64

Competitive Comparison of Kim Heng's Interest Coverage

For the Oil & Gas Equipment & Services subindustry, Kim Heng'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.

Kim Heng's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Kim Heng's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kim Heng's Interest Coverage falls into.

Kim Heng 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.

Kim Heng'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, Kim Heng's Interest Expense was S$-3.1 Mil. Its Operating Income was S$12.9 Mil. And its Long-Term Debt & Capital Lease Obligation was S$33.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	12.89	/	-3.11
	=	4.14

Kim Heng's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Kim Heng's Interest Expense was S$-1.8 Mil. Its Operating Income was S$8.1 Mil. And its Long-Term Debt & Capital Lease Obligation was S$33.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	8.138	/	-1.754
	=	4.64

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

Kim Heng (SGX:5G2) 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 .

Kim Heng Interest Coverage Related Terms

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

Kim Heng (SGX:5G2) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Kim Heng Ltd (SGX:5G2) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 48 Penjuru Road, Singapore, SGP, 609152

Website

https://www.kimheng.com.sg

Kim Heng Ltd is an integrated offshore and marine value chain service provider. It is engaged in providing services like supply chain management which includes the provision of logistics, general shipping, and crew management, and provision of offshore supply vessels and heavy lift equipment, vessel sales, and newbuild which includes purchase and refurbishment of vessels for onselling, and heavy equipment sale and rental which includes leasing, sale, maintenance, import and export of heavy equipment, and providing equipment and machinery like a crawler, lorry, and mobile cranes. The operating segments are Offshore Rig Services and Supply Chain Management, and Vessel Sales and Newbuilds where offshore rig services contribute the majority of revenue.

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