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Micro-Star International Co (TPE:2377) Interest Coverage : 107.41 (As of Dec. 2023)


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What is Micro-Star International 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. Micro-Star International Co's Operating Income for the three months ended in Dec. 2023 was NT$1,401 Mil. Micro-Star International Co's Interest Expense for the three months ended in Dec. 2023 was NT$-13 Mil. Micro-Star International Co's interest coverage for the quarter that ended in Dec. 2023 was 107.41. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Micro-Star International Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Micro-Star International Co's Interest Coverage or its related term are showing as below:

TPE:2377' s Interest Coverage Range Over the Past 10 Years
Min: 76.2   Med: 303.29   Max: 2144.11
Current: 319.2


TPE:2377's Interest Coverage is ranked better than
90% of 1590 companies
in the Hardware industry
Industry Median: 12.525 vs TPE:2377: 319.20

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


Micro-Star International Co Interest Coverage Historical Data

The historical data trend for Micro-Star International 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.

Micro-Star International Co Interest Coverage Chart

Micro-Star International Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 253.47 287.37 1,068.54 280.93 319.20

Micro-Star International Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 105.24 743.77 475.90 384.71 107.41

Competitive Comparison of Micro-Star International Co's Interest Coverage

For the Computer Hardware subindustry, Micro-Star International 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.


Micro-Star International Co's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Micro-Star International Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Micro-Star International Co's Interest Coverage falls into.



Micro-Star International 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.

Micro-Star International 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, Micro-Star International Co's Interest Expense was NT$-28 Mil. Its Operating Income was NT$8,828 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$360 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*8828.005/-27.657
=319.20

Micro-Star International Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Micro-Star International Co's Interest Expense was NT$-13 Mil. Its Operating Income was NT$1,401 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$360 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*1401.006/-13.044
=107.41

* 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.


Micro-Star International Co  (TPE:2377) 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 .


Micro-Star International Co Interest Coverage Related Terms

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


Micro-Star International Co (TPE:2377) Business Description

Traded in Other Exchanges
N/A
Address
No. 69, Lide Street, Zhonghe District, New Taipei, TWN, 235
Micro-Star International Co Ltd is a manufacturer and distributor of computer hardware products, particularly gaming laptops and hardware. Its other products include laptops, motherboards, graphics cards, all-in-one PCs, mobile workstations, barebone computers, servers, multimedia peripherals to vehicle infotainment solutions, smart cleaning robots, and Wi-Fi cameras.

Micro-Star International Co (TPE:2377) Headlines

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