GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Tungray Technologies Inc (NAS:TRSG) » Definitions » Interest Coverage

TRSG (Tungray Technologies) Interest Coverage : 5.48 (As of Dec. 2023)


View and export this data going back to 2024. Start your Free Trial

What is Tungray Technologies 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. Tungray Technologies's Operating Income for the six months ended in Dec. 2023 was $1.00 Mil. Tungray Technologies's Interest Expense for the six months ended in Dec. 2023 was $-0.18 Mil. Tungray Technologies's interest coverage for the quarter that ended in Dec. 2023 was 5.48. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Tungray Technologies's Interest Coverage or its related term are showing as below:

TRSG' s Interest Coverage Range Over the Past 10 Years
Min: 5.35   Med: 15.84   Max: 89.25
Current: 6.15


TRSG's Interest Coverage is ranked worse than
68.43% of 2274 companies
in the Industrial Products industry
Industry Median: 13.985 vs TRSG: 6.15

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


Tungray Technologies Interest Coverage Historical Data

The historical data trend for Tungray Technologies'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.

Tungray Technologies Interest Coverage Chart

Tungray Technologies Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Interest Coverage
5.35 24.68 89.25 6.99

Tungray Technologies Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Interest Coverage Get a 7-Day Free Trial 38.03 26.17 N/A N/A 5.48

Competitive Comparison of Tungray Technologies's Interest Coverage

For the Metal Fabrication subindustry, Tungray Technologies'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.


Tungray Technologies's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Tungray Technologies's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tungray Technologies's Interest Coverage falls into.



Tungray Technologies 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.

Tungray Technologies'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, Tungray Technologies's Interest Expense was $-0.16 Mil. Its Operating Income was $1.13 Mil. And its Long-Term Debt & Capital Lease Obligation was $2.30 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*1.125/-0.161
=6.99

Tungray Technologies's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Tungray Technologies's Interest Expense was $-0.18 Mil. Its Operating Income was $1.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $2.30 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*1.003/-0.183
=5.48

* 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.


Tungray Technologies  (NAS:TRSG) 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 .


Tungray Technologies Interest Coverage Related Terms

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


Tungray Technologies Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Innovation Place Tower 4, No. 02-01, 31 Mandai Estate, Singapore, SGP, 729933
Tungray Technologies Inc is an engineer-to-order company that provides custom industrial manufacturing solutions to original equipment manufacturers in the semiconductor, printer, electronics, and home appliance industries. It predominantly generates revenue through the manufacture of custom industrial manufacturing solutions, direct drive and linear DC motors, and induction welding equipment. Geographically, the company generates a majority of its revenue from Singapore and the rest from China.