GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » A-Tech Solution Co Ltd (XKRX:071670) » Definitions » Interest Coverage

A-Tech Solution Co (XKRX:071670) Interest Coverage : 1.34 (As of Dec. 2023)


View and export this data going back to 2009. Start your Free Trial

What is A-Tech Solution 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. A-Tech Solution Co's Operating Income for the three months ended in Dec. 2023 was ₩1,565 Mil. A-Tech Solution Co's Interest Expense for the three months ended in Dec. 2023 was ₩-1,165 Mil. A-Tech Solution Co's interest coverage for the quarter that ended in Dec. 2023 was 1.34. 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. A-Tech Solution 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 A-Tech Solution Co's Interest Coverage or its related term are showing as below:

XKRX:071670' s Interest Coverage Range Over the Past 10 Years
Min: 0.75   Med: 1.73   Max: 5.77
Current: 0.97


XKRX:071670's Interest Coverage is ranked worse than
95.04% of 2300 companies
in the Industrial Products industry
Industry Median: 13.505 vs XKRX:071670: 0.97

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


A-Tech Solution Co Interest Coverage Historical Data

The historical data trend for A-Tech Solution 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.

A-Tech Solution Co Interest Coverage Chart

A-Tech Solution 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 1.86 3.11 5.77 2.88 0.97

A-Tech Solution 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 4.27 0.36 1.41 0.69 1.34

Competitive Comparison of A-Tech Solution Co's Interest Coverage

For the Specialty Industrial Machinery subindustry, A-Tech Solution 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.


A-Tech Solution Co's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, A-Tech Solution Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where A-Tech Solution Co's Interest Coverage falls into.



A-Tech Solution 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.

A-Tech Solution 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, A-Tech Solution Co's Interest Expense was ₩-4,228 Mil. Its Operating Income was ₩4,099 Mil. And its Long-Term Debt & Capital Lease Obligation was ₩8,541 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*4099.194/-4228.359
=0.97

A-Tech Solution Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, A-Tech Solution Co's Interest Expense was ₩-1,165 Mil. Its Operating Income was ₩1,565 Mil. And its Long-Term Debt & Capital Lease Obligation was ₩8,541 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*1565.347/-1164.622
=1.34

* 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.


A-Tech Solution Co  (XKRX:071670) 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 .


A-Tech Solution Co Interest Coverage Related Terms

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


A-Tech Solution Co (XKRX:071670) Business Description

Traded in Other Exchanges
N/A
Address
277, Gajang-ro, Jeongnam-myeon, Gyeonggi-do, Hwadeong-si, KOR, 445-962
A-Tech Solution Co Ltd is engaged in manufacturing injection mold and press die products. Its products include TV, appliance & automobile mold, stamping die, and LED lighting products.

A-Tech Solution Co (XKRX:071670) Headlines

No Headlines