Samsung Life Insurance Co (XKRX:032830) Interest Coverage : 2.47 (As of Dec. 2023)

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What is Samsung Life Insurance 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 EBIT by its Interest Expense. Samsung Life Insurance Co's EBIT for the three months ended in Dec. 2023 was ₩1,035,330 Mil. Samsung Life Insurance Co's Interest Expense for the three months ended in Dec. 2023 was ₩-419,933 Mil. Samsung Life Insurance Co's interest coverage for the quarter that ended in Dec. 2023 was 2.47. 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 Life Insurance Co Ltd interest coverage is 2.66, which is low.

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

XKRX:032830' s Interest Coverage Range Over the Past 10 Years
Min: 2.66 Med: 5.1 Max: 16.55
Current: 2.66

XKRX:032830's Interest Coverage is ranked worse than
86.46% of 325 companies
in the Insurance industry
Industry Median: 13.52 vs XKRX:032830: 2.66

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 Life Insurance Co Interest Coverage Historical Data

The historical data trend for Samsung Life Insurance 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 Life Insurance Co Interest Coverage Chart

Samsung Life Insurance Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3.24

5.41

4.33

3.18

2.66

Samsung Life Insurance 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															4.98	5.06	1.81	2.42	2.47

Competitive Comparison of Samsung Life Insurance Co's Interest Coverage

For the Insurance - Life subindustry, Samsung Life Insurance 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 Life Insurance Co's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Samsung Life Insurance Co's Interest Coverage distribution charts can be found below:

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

Samsung Life Insurance 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 EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT 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 Life Insurance 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 Life Insurance Co's Interest Expense was ₩-1,538,797 Mil. Its EBIT was ₩4,097,848 Mil. And its Long-Term Debt & Capital Lease Obligation was ₩19,617,536 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4097848	/	-1538797
	=	2.66

Samsung Life Insurance 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 Life Insurance Co's Interest Expense was ₩-419,933 Mil. Its EBIT was ₩1,035,330 Mil. And its Long-Term Debt & Capital Lease Obligation was ₩19,617,536 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1035330	/	-419933
	=	2.47

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

Samsung Life Insurance Co (XKRX:032830) 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 Life Insurance Co Interest Coverage Related Terms

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

Samsung Life Insurance Co (XKRX:032830) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Samsung Life Insurance Co Ltd (XKRX:032830) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Samsung Life Insurance Building, Jung-gu, SEOUL, KOR, 100-716

Website

http://www.samsunglife.com

Samsung Life is Korea's largest insurer. It has a market share of life-insurance premiums of 22%, compared with 12% each for its two biggest rivals. It owns 72% of listed Samsung Card and 30% of equity-method affiliate Samsung Securities. It also owns close to 15% of sister company Samsung Fire & Marine Insurance, Korea's largest nonlife insurer, and owns 8.5% of Samsung Electronics, a stake that is worth well in excess of its own market cap. It in turn is 49% owned by related shareholders: 10.4% by Jay Lee, 6.9% and 1.7%, respectively, by Jay Lee's sisters Boo-Jin and Seo-Hyun, 19.3% by Samsung C&T (the presumptive parent of the Samsung group), 5.9% by E-mart (a retailer whose largest shareholders are Jay Lee's aunt and cousin), and 4.7% by the Samsung Foundation of Culture.

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