Singapore Technologies Engineering (Singapore Technologies Engineering) Interest Coverage : 3.22 (As of Dec. 2023)

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What is Singapore Technologies Engineering 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. Singapore Technologies Engineering's Operating Income for the six months ended in Dec. 2023 was $294 Mil. Singapore Technologies Engineering's Interest Expense for the six months ended in Dec. 2023 was $-91 Mil. Singapore Technologies Engineering's interest coverage for the quarter that ended in Dec. 2023 was 3.22. 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. Singapore Technologies Engineering Ltd interest coverage is 3.5, which is low.

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

SGGKY' s Interest Coverage Range Over the Past 10 Years
Min: 3.5 Med: 13.27 Max: 15.06
Current: 3.5

SGGKY's Interest Coverage is ranked worse than
71.5% of 214 companies
in the Aerospace & Defense industry
Industry Median: 6.915 vs SGGKY: 3.50

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

Singapore Technologies Engineering Interest Coverage Historical Data

The historical data trend for Singapore Technologies Engineering'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.

Singapore Technologies Engineering Interest Coverage Chart

Singapore Technologies Engineering Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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15.04

11.31

13.55

4.43

3.50

Singapore Technologies Engineering Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															12.75	8.33	2.79	3.80	3.22

Competitive Comparison of Singapore Technologies Engineering's Interest Coverage

For the Aerospace & Defense subindustry, Singapore Technologies Engineering'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.

Singapore Technologies Engineering's Interest Coverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Singapore Technologies Engineering's Interest Coverage distribution charts can be found below:

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

Singapore Technologies Engineering 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.

Singapore Technologies Engineering'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, Singapore Technologies Engineering's Interest Expense was $-177 Mil. Its Operating Income was $620 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,661 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	619.67	/	-177.036
	=	3.50

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

Here, for the six months ended in Dec. 2023, Singapore Technologies Engineering's Interest Expense was $-91 Mil. Its Operating Income was $294 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,661 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	293.816	/	-91.348
	=	3.22

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

Singapore Technologies Engineering (OTCPK:SGGKY) 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 .

Singapore Technologies Engineering Interest Coverage Related Terms

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

Singapore Technologies Engineering (Singapore Technologies Engineering) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Singapore Technologies Engineering Ltd (OTCPK:SGGKY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SGGKF:USA S63:Singapore SJX:Germany

Address

1 Ang Mo Kio Electronics Park Road, No. 07-01, ST Engineering Hub, Singapore, SGP, 567710

Website

https://www.stengg.com

Singapore Technologies Engineering is a Singaporean government-linked commercial and defense engineering group. Its key businesses include aircraft maintenance, repair and overhaul services, in which it is the world's largest independent third-party provider. The company's fastest-growing activities involve applications to smart city solutions where it provides tolling solutions, traffic control systems, command and control dashboards, cybersecurity tools, and other related components. Around two thirds of the company's revenue comes from commercial clients while the remainder is defense.