Guangdong Leadyo IC Testing Co (SHSE:688135) Interest Coverage : 0.66 (As of Mar. 2024)

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What is Guangdong Leadyo IC Testing 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. Guangdong Leadyo IC Testing Co's Operating Income for the three months ended in Mar. 2024 was ¥4.0 Mil. Guangdong Leadyo IC Testing Co's Interest Expense for the three months ended in Mar. 2024 was ¥-6.1 Mil. Guangdong Leadyo IC Testing Co's interest coverage for the quarter that ended in Mar. 2024 was 0.66. 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. Guangdong Leadyo IC Testing Co Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Guangdong Leadyo IC Testing Co's Interest Coverage or its related term are showing as below:

SHSE:688135' s Interest Coverage Range Over the Past 10 Years
Min: 0.89 Med: 29.67 Max: No Debt
Current: 0.89

SHSE:688135's Interest Coverage is ranked worse than
94.89% of 626 companies
in the Semiconductors industry
Industry Median: 19.355 vs SHSE:688135: 0.89

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

Guangdong Leadyo IC Testing Co Interest Coverage Historical Data

The historical data trend for Guangdong Leadyo IC Testing 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.

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Guangdong Leadyo IC Testing Co Interest Coverage Chart

Guangdong Leadyo IC Testing Co Annual Data

Trend

Dec13

Dec14

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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35.07

16.82

61.25

3.45

1.17

Guangdong Leadyo IC Testing Co 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															1.72	2.29	2.36	-	0.66

Competitive Comparison of Guangdong Leadyo IC Testing Co's Interest Coverage

For the Semiconductors subindustry, Guangdong Leadyo IC Testing 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.

Guangdong Leadyo IC Testing Co's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Guangdong Leadyo IC Testing Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Guangdong Leadyo IC Testing Co's Interest Coverage falls into.

Guangdong Leadyo IC Testing 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.

Guangdong Leadyo IC Testing 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, Guangdong Leadyo IC Testing Co's Interest Expense was ¥-18.4 Mil. Its Operating Income was ¥21.6 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥370.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	21.623	/	-18.448
	=	1.17

Guangdong Leadyo IC Testing Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Guangdong Leadyo IC Testing Co's Interest Expense was ¥-6.1 Mil. Its Operating Income was ¥4.0 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥416.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	4.024	/	-6.076
	=	0.66

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

Guangdong Leadyo IC Testing Co (SHSE:688135) 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 .

Guangdong Leadyo IC Testing Co Interest Coverage Related Terms

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Guangdong Leadyo IC Testing Co (SHSE:688135) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Guangdong Leadyo IC Testing Co Ltd (SHSE:688135) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 2, Xinfeng East 2nd Road, Wanjiang Street, Mowu, Guangdong Province, Dongguan, CHN, 523050

Website

http://www.leadyo.com

Guangdong Leadyo IC Testing Co Ltd is engaged in integrated circuit testing program development, 12-inch and 8-inch wafer testing services, finished chip testing services, and supporting services related to integrated circuit testing. It specializes in the semiconductor back-end processing step including the manufacture of integrated circuits of wafer testing, wafer thinning, wafer cutting, product testing and IC taping one-stop service, IC testing and provide software development, chip testing analysis, Load Board MPW production and engineering validation and Probe Card batch production, and other related services.

Executives

Yuan Jun	Director, core technical staff
Zhang Yi Feng	Directors, senior managers, core technical personn
Gu Shi Tao	Directors, senior managers, core technical personn
Zhang Li Ping	Supervisors
Qu Hao	Director
Lu Xu Kun	Core technical personnel
Zheng Chao Sheng	Core technical personnel
Deng Xian Xue	Supervisors
Xu Jie Feng	Supervisors
Huang Zhu	Director
Huang Jiang	Director

Guangdong Leadyo IC Testing Co (SHSE:688135) Headlines

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