Divfex Bhd (XKLS:0131) Interest Coverage : 109.17 (As of Mar. 2024)

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What is Divfex Bhd 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. Divfex Bhd's Operating Income for the three months ended in Mar. 2024 was RM1.97 Mil. Divfex Bhd's Interest Expense for the three months ended in Mar. 2024 was RM-0.02 Mil. Divfex Bhd's interest coverage for the quarter that ended in Mar. 2024 was 109.17. 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. Divfex Bhd has enough cash to cover all of its debt. Its financial situation is stable.

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

XKLS:0131' s Interest Coverage Range Over the Past 10 Years
Min: 0.57 Med: 4.81 Max: 336.17
Current: 336.17

XKLS:0131's Interest Coverage is ranked better than
77.66% of 1598 companies
in the Software industry
Industry Median: 29.27 vs XKLS:0131: 336.17

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

Divfex Bhd Interest Coverage Historical Data

The historical data trend for Divfex Bhd'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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Divfex Bhd Interest Coverage Chart

Divfex Bhd Annual Data

Trend

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Jun20

Jun21

Jun22

Jun23

Interest Coverage

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0.57

18.40

24.10

Divfex Bhd Quarterly Data
	Dec18	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															51.29	-	163.36	249.00	109.17

Competitive Comparison of Divfex Bhd's Interest Coverage

For the Information Technology Services subindustry, Divfex Bhd'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.

Divfex Bhd's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Divfex Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Divfex Bhd's Interest Coverage falls into.

Divfex Bhd 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.

Divfex Bhd's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Divfex Bhd's Interest Expense was RM-0.42 Mil. Its Operating Income was RM10.17 Mil. And its Long-Term Debt & Capital Lease Obligation was RM0.78 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	10.172	/	-0.422
	=	24.10

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

Here, for the three months ended in Mar. 2024, Divfex Bhd's Interest Expense was RM-0.02 Mil. Its Operating Income was RM1.97 Mil. And its Long-Term Debt & Capital Lease Obligation was RM0.72 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	1.965	/	-0.018
	=	109.17

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

Divfex Bhd (XKLS:0131) 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 .

Divfex Bhd Interest Coverage Related Terms

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

Divfex Bhd (XKLS:0131) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Divfex Bhd (XKLS:0131) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1, Persiaran Jalil 1, 2-05-01, Level 5, Ho Hup Tower, Bandar Bukit Jalil, Kuala Lumpur, SGR, MYS, 57000

Website

https://www.divfex.com

Divfex Bhd is an investment holding company. It has three operating segments. Information and Communication Technology, which includes the Provision of a comprehensive range of tele/data communication, network infrastructure industrial automation & network performance monitoring solutions, and related services. Food Manufacturing (discontinued) includes Food and contract manufacturing. Other segments comprise operations related to investment holding activities, distribution, and reselling of hardware and software, and related services. The majority of revenue is generated from the Information & Communication Technology segment. Geographically, The group operates in Malaysia.

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