Nexchip Semiconductor (SHSE:688249) Interest Coverage : 1.28 (As of Mar. 2024)

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What is Nexchip Semiconductor 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. Nexchip Semiconductor's Operating Income for the three months ended in Mar. 2024 was ¥177 Mil. Nexchip Semiconductor's Interest Expense for the three months ended in Mar. 2024 was ¥-138 Mil. Nexchip Semiconductor's interest coverage for the quarter that ended in Mar. 2024 was 1.28. 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. Nexchip Semiconductor Corp interest coverage is 1.4, which is low.

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

SHSE:688249' s Interest Coverage Range Over the Past 10 Years
Min: 0.59 Med: 8.49 Max: 8.87
Current: 1.4

SHSE:688249's Interest Coverage is ranked worse than
92.44% of 622 companies
in the Semiconductors industry
Industry Median: 20.52 vs SHSE:688249: 1.40

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

Nexchip Semiconductor Interest Coverage Historical Data

The historical data trend for Nexchip Semiconductor'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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Nexchip Semiconductor Interest Coverage Chart

Nexchip Semiconductor Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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8.87

8.49

0.59

Nexchip Semiconductor Quarterly Data
	Dec18	Dec19	Dec20	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial									-	2.12	0.38	3.14	1.28

Competitive Comparison of Nexchip Semiconductor's Interest Coverage

For the Semiconductors subindustry, Nexchip Semiconductor'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.

Nexchip Semiconductor's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Nexchip Semiconductor's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Nexchip Semiconductor's Interest Coverage falls into.

Nexchip Semiconductor 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.

Nexchip Semiconductor'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, Nexchip Semiconductor's Interest Expense was ¥-452 Mil. Its Operating Income was ¥266 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥11,510 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	266.056	/	-451.674
	=	0.59

Nexchip Semiconductor's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Nexchip Semiconductor's Interest Expense was ¥-138 Mil. Its Operating Income was ¥177 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥17,705 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	177.167	/	-138.467
	=	1.28

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

Nexchip Semiconductor (SHSE:688249) 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 .

Nexchip Semiconductor Interest Coverage Related Terms

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

Nexchip Semiconductor (SHSE:688249) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Nexchip Semiconductor Corp (SHSE:688249) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 88, West Feihe Road, Hefei Comprehensive Bonded Zone, Xinzhan District, Anhui Province, Hefei, CHN, 230011

Website

https://www.nexchip.com.cn

Nexchip Semiconductor Corp is the first 12-inch wafer foundry enterprise in Anhui Province. The company focuses on semiconductor wafer production and foundry services and is committed to contributing to the improvement of domestic independent and controllable integrated circuit manufacturing capabilities, providing customers with different 150-55nm process technologies, and will introduce more advanced process technologies in the future. It is engaged in Research and development, production and sales of integrated circuit-related products and supporting products.

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