Sembcorp Industries (SGX:U96) Interest Coverage : 2.65 (As of Dec. 2023)

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What is Sembcorp Industries 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. Sembcorp Industries's Operating Income for the six months ended in Dec. 2023 was S$519 Mil. Sembcorp Industries's Interest Expense for the six months ended in Dec. 2023 was S$-196 Mil. Sembcorp Industries's interest coverage for the quarter that ended in Dec. 2023 was 2.65. 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. Sembcorp Industries Ltd interest coverage is 2.89, which is low.

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

SGX:U96' s Interest Coverage Range Over the Past 10 Years
Min: 0.89 Med: 1.89 Max: 15.68
Current: 2.89

SGX:U96's Interest Coverage is ranked worse than
69.23% of 390 companies
in the Conglomerates industry
Industry Median: 5.28 vs SGX:U96: 2.89

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

Sembcorp Industries Interest Coverage Historical Data

The historical data trend for Sembcorp Industries'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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Sembcorp Industries Interest Coverage Chart

Sembcorp Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.78

1.23

1.94

2.51

2.89

Sembcorp Industries 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															1.68	2.63	2.43	3.12	2.65

Competitive Comparison of Sembcorp Industries's Interest Coverage

For the Conglomerates subindustry, Sembcorp Industries'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.

Sembcorp Industries's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Sembcorp Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sembcorp Industries's Interest Coverage falls into.

Sembcorp Industries 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.

Sembcorp Industries'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, Sembcorp Industries's Interest Expense was S$-397 Mil. Its Operating Income was S$1,147 Mil. And its Long-Term Debt & Capital Lease Obligation was S$6,265 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1147	/	-397
	=	2.89

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

Here, for the six months ended in Dec. 2023, Sembcorp Industries's Interest Expense was S$-196 Mil. Its Operating Income was S$519 Mil. And its Long-Term Debt & Capital Lease Obligation was S$6,265 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	519	/	-196
	=	2.65

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

Sembcorp Industries (SGX:U96) 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 .

Sembcorp Industries Interest Coverage Related Terms

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

Sembcorp Industries (SGX:U96) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Sembcorp Industries Ltd (SGX:U96) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SBOA:Germany

Address

30 Hill Street, Number 05-04, Singapore, SGP, 179360

Website

https://www.sembcorp.com

Sembcorp Industries Ltd is an investment holding company engaged in the production and supply of utility services, and handling and storage of petroleum products and chemicals. Its business is divided into four segments: Energy, Urban, and Others/Corporate. The company's service portfolio includes power generation, process steam production, wastewater treatment, integrated solutions for offshore and marine industry such as specialized shipbuilding, and repairs & upgrades, and development and marketing of commercial and residential spaces, among others. A vast majority of the company's income is generated by the energy segment, and the majority of the company's revenue is earned in Singapore and India together.

Sembcorp Industries (SGX:U96) Headlines

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