Samsung Heavy Industries Co (XKRX:010140) Interest Coverage : 1.53 (As of Dec. 2023)

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What is Samsung Heavy Industries 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. Samsung Heavy Industries Co's Operating Income for the three months ended in Dec. 2023 was ₩78,999 Mil. Samsung Heavy Industries Co's Interest Expense for the three months ended in Dec. 2023 was ₩-51,517 Mil. Samsung Heavy Industries Co's interest coverage for the quarter that ended in Dec. 2023 was 1.53. 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. Samsung Heavy Industries Co Ltd interest coverage is 1.31, which is low.

The historical rank and industry rank for Samsung Heavy Industries Co's Interest Coverage or its related term are showing as below:

XKRX:010140' s Interest Coverage Range Over the Past 10 Years
Min: 1.31 Med: 4.19 Max: 7.06
Current: 1.31

XKRX:010140's Interest Coverage is ranked worse than
90% of 210 companies
in the Aerospace & Defense industry
Industry Median: 6.855 vs XKRX:010140: 1.31

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

Samsung Heavy Industries Co Interest Coverage Historical Data

The historical data trend for Samsung Heavy Industries 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.

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Samsung Heavy Industries Co Interest Coverage Chart

Samsung Heavy Industries Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.31

Samsung Heavy Industries 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															-	0.50	1.41	1.64	1.53

Competitive Comparison of Samsung Heavy Industries Co's Interest Coverage

For the Aerospace & Defense subindustry, Samsung Heavy Industries 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.

Samsung Heavy Industries Co's Interest Coverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Samsung Heavy Industries Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Samsung Heavy Industries Co's Interest Coverage falls into.

Samsung Heavy Industries 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.

Samsung Heavy Industries 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, Samsung Heavy Industries Co's Interest Expense was ₩-178,582 Mil. Its Operating Income was ₩233,345 Mil. And its Long-Term Debt & Capital Lease Obligation was ₩615,085 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	233344.768	/	-178581.673
	=	1.31

Samsung Heavy Industries Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Samsung Heavy Industries Co's Interest Expense was ₩-51,517 Mil. Its Operating Income was ₩78,999 Mil. And its Long-Term Debt & Capital Lease Obligation was ₩615,085 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	78999.079	/	-51516.806
	=	1.53

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

Samsung Heavy Industries Co (XKRX:010140) 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 .

Samsung Heavy Industries Co Interest Coverage Related Terms

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

Samsung Heavy Industries Co (XKRX:010140) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Samsung Heavy Industries Co Ltd (XKRX:010140) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Samsung Life Insurance Seocho Tower, 1321-15, Seocho-Dong, Seoul, KOR, 137-955

Website

http://www.shi.samsung.co.kr

Samsung Heavy Industries Co Ltd is a South Korean-based shipbuilding and construction company. Its area of operations divides into Shipbuilding, Offshore Drilling and Production, and Power and Control Systems. SHI's Shipbuilding operation includes hull construction, block assembly, and outfitting. Offshore Drilling and Production division incorporates FPSO, drill ships, fixed offshore platforms, and floating offshore platforms. Its Power and Control Systems division develops and supplies automated navigation, ballast water processing system and LNG storage and supply, and regasification. Business operations of the company are functioned through China, America, Middle East, Africa, Europe and Asia.

Samsung Heavy Industries Co (XKRX:010140) Headlines

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