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True PCL (BKK:TRUE) Interest Coverage : 1.16 (As of Mar. 2024)


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What is True PCL 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. True PCL's Operating Income for the three months ended in Mar. 2024 was ฿5,961 Mil. True PCL's Interest Expense for the three months ended in Mar. 2024 was ฿-5,152 Mil. True PCL's interest coverage for the quarter that ended in Mar. 2024 was 1.16. 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. True Corp PCLs 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 True PCL's Interest Coverage or its related term are showing as below:

BKK:TRUE' s Interest Coverage Range Over the Past 10 Years
Min: 0.13   Med: 0.71   Max: 3.83
Current: 0.9


BKK:TRUE's Interest Coverage is ranked worse than
88.32% of 291 companies
in the Telecommunication Services industry
Industry Median: 4.47 vs BKK:TRUE: 0.90

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


True PCL Interest Coverage Historical Data

The historical data trend for True PCL'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.

True PCL Interest Coverage Chart

True PCL 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 0.71 0.68 0.77 0.13 N/A

True PCL Quarterly Data
Jun19 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 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 0.85 0.86 0.69 N/A 1.16

Competitive Comparison of True PCL's Interest Coverage

For the Telecom Services subindustry, True PCL'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.


True PCL's Interest Coverage Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where True PCL's Interest Coverage falls into.



True PCL 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.

True PCL'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, True PCL's Interest Expense was ฿0 Mil. Its Operating Income was ฿0 Mil. And its Long-Term Debt & Capital Lease Obligation was ฿379,182 Mil.

GuruFocus does not calculate True PCL's interest coverage with the available data.

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

Here, for the three months ended in Mar. 2024, True PCL's Interest Expense was ฿-5,152 Mil. Its Operating Income was ฿5,961 Mil. And its Long-Term Debt & Capital Lease Obligation was ฿373,510 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*5960.726/-5152.15
=1.16

* 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.


True PCL  (BKK:TRUE) 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 .


True PCL Interest Coverage Related Terms

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


True PCL (BKK:TRUE) Business Description

Traded in Other Exchanges
Address
18 True Tower, Ratchadaphisek Road, Huai Khwang, Bangkok, THA, 10310
True Corp PCL is a triple-play telecommunications company. It operates through three business segments: TrueOnline, TrueMove H, and TrueVisions. The majority of revenue is derived from TrueMove H, the company's mobile services product offering. The majority of the company's customer base in its mobile services division is considered prepaid. TrueOnline comprises the company's fixed-line telephone and public phone services, Internet, and business data services. TrueVisions is the group's pay-TV service. It is delivered via digital direct-to-home satellite and hybrid fibre-coaxial cable network platforms. It operates in a single geographical area, which is Thailand.