OCK Group Bhd (XKLS:0172) Interest Coverage : 2.56 (As of Sep. 2023)

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What is OCK Group 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. OCK Group Bhd's Operating Income for the three months ended in Sep. 2023 was RM27.4 Mil. OCK Group Bhd's Interest Expense for the three months ended in Sep. 2023 was RM-10.7 Mil. OCK Group Bhd's interest coverage for the quarter that ended in Sep. 2023 was 2.56. 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. OCK Group Bhd interest coverage is 2.49, which is low.

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

XKLS:0172' s Interest Coverage Range Over the Past 10 Years
Min: 2.21 Med: 3.15 Max: 7.89
Current: 2.49

XKLS:0172's Interest Coverage is ranked worse than
69.1% of 288 companies
in the Telecommunication Services industry
Industry Median: 4.61 vs XKLS:0172: 2.49

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

OCK Group Bhd Interest Coverage Historical Data

The historical data trend for OCK Group 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.

* Premium members only.

OCK Group Bhd Interest Coverage Chart

OCK Group Bhd Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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3.01

2.24

2.21

2.43

2.62

OCK Group Bhd Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial															2.76	2.48	2.43	2.48	2.56

Competitive Comparison of OCK Group Bhd's Interest Coverage

For the Telecom Services subindustry, OCK Group 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.

OCK Group Bhd's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, OCK Group Bhd's Interest Coverage distribution charts can be found below:

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

OCK Group 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.

OCK Group Bhd's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, OCK Group Bhd's Interest Expense was RM-30.0 Mil. Its Operating Income was RM78.8 Mil. And its Long-Term Debt & Capital Lease Obligation was RM492.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	78.808	/	-30.043
	=	2.62

OCK Group Bhd's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, OCK Group Bhd's Interest Expense was RM-10.7 Mil. Its Operating Income was RM27.4 Mil. And its Long-Term Debt & Capital Lease Obligation was RM535.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	27.412	/	-10.721
	=	2.56

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

OCK Group Bhd (XKLS:0172) 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 .

OCK Group Bhd Interest Coverage Related Terms

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

OCK Group Bhd (XKLS:0172) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » OCK Group Bhd (XKLS:0172) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 18, Jalan Jurunilai U1/20, Seksyen U1, Hicom Glenmarie Industrial Park, Shah Alam, SGR, MYS, 40150

Website

https://www.ock.com.my

OCK Group Bhd provides telecommunications network services. The company is engaged in the provision of telecommunication services equipped with the ability to provide full turnkey services. The company operates in segments namely Telecommunication Network Services, Green Energy & Power Solutions, Trading, Mechanical & Electrical Engineering Services, and Investment Holding. The majority of the revenue is generated from the Telecommunication Network Services. The company also trades in telecommunication hardware and installation of materials such as antennas, feeder cables, and connectors. The company operates in Malaysia, China, Myanmar, Indonesia, Singapore, and Vietnam, out of which Malaysia accounts for the majority revenue.

OCK Group Bhd (XKLS:0172) Headlines

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