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Kuala Lumpur Kepong Bhd (XKLS:2445) Interest Coverage : 4.39 (As of Dec. 2023)


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What is Kuala Lumpur Kepong 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. Kuala Lumpur Kepong Bhd's Operating Income for the three months ended in Dec. 2023 was RM484 Mil. Kuala Lumpur Kepong Bhd's Interest Expense for the three months ended in Dec. 2023 was RM-110 Mil. Kuala Lumpur Kepong Bhd's interest coverage for the quarter that ended in Dec. 2023 was 4.39. The higher the ratio, the stronger the company's financial strength is.

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

XKLS:2445' s Interest Coverage Range Over the Past 10 Years
Min: 8.92   Med: 27.4   Max: 61.46
Current: 8.92


XKLS:2445's Interest Coverage is ranked worse than
52.48% of 1191 companies
in the Chemicals industry
Industry Median: 9.75 vs XKLS:2445: 8.92

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


Kuala Lumpur Kepong Bhd Interest Coverage Historical Data

The historical data trend for Kuala Lumpur Kepong 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.

Kuala Lumpur Kepong Bhd Interest Coverage Chart

Kuala Lumpur Kepong Bhd Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.16 27.56 61.46 27.24 10.68

Kuala Lumpur Kepong Bhd 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 6.91 5.77 1.79 - 4.39

Competitive Comparison of Kuala Lumpur Kepong Bhd's Interest Coverage

For the Specialty Chemicals subindustry, Kuala Lumpur Kepong 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.


Kuala Lumpur Kepong Bhd's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Kuala Lumpur Kepong Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kuala Lumpur Kepong Bhd's Interest Coverage falls into.



Kuala Lumpur Kepong 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.

Kuala Lumpur Kepong Bhd's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Kuala Lumpur Kepong Bhd's Interest Expense was RM-170 Mil. Its Operating Income was RM1,813 Mil. And its Long-Term Debt & Capital Lease Obligation was RM7,158 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2023 )/Interest Expense (A: Sep. 2023 )
=-1*1813.192/-169.746
=10.68

Kuala Lumpur Kepong Bhd's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Kuala Lumpur Kepong Bhd's Interest Expense was RM-110 Mil. Its Operating Income was RM484 Mil. And its Long-Term Debt & Capital Lease Obligation was RM7,469 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*483.502/-110.095
=4.39

* 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.


Kuala Lumpur Kepong Bhd  (XKLS:2445) 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 .


Kuala Lumpur Kepong Bhd Interest Coverage Related Terms

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


Kuala Lumpur Kepong Bhd (XKLS:2445) Business Description

Traded in Other Exchanges
Address
No. 1, Jalan S.P. Seenivasagam, Wisma Taiko, Ipoh, PRK, MYS, 30000
Kuala Lumpur Kepong Bhd harvests oil palm and rubber plantations in Southeast Asia. On top of utilizing the plantations, the company manufactures fatty acids and alcohols, oleochemicals, soaps, rubber gloves, and other specialty chemicals and is also engaged in the business of Property development. Its reportable segments include, Plantation, Manufacturing, Property Development , Investment Holding and Others. Majority of the revenue is generated from its manufacturing segment which is involved in manufacturing of oleochemicals, non-ionic surfactants and esters, rubber gloves, parquet flooring products, pharmaceutical products, storing and distribution of bulk liquid, refining of palm products, kernel crushing and trading of palm products.

Kuala Lumpur Kepong Bhd (XKLS:2445) Headlines

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