Mongolia Energy (HKSE:00276) Interest Coverage : 1.22 (As of Sep. 2023)

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What is Mongolia Energy 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. Mongolia Energy's Operating Income for the six months ended in Sep. 2023 was HK$413 Mil. Mongolia Energy's Interest Expense for the six months ended in Sep. 2023 was HK$-339 Mil. Mongolia Energy's interest coverage for the quarter that ended in Sep. 2023 was 1.22. 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. Mongolia Energy Corp Ltds 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 Mongolia Energy's Interest Coverage or its related term are showing as below:

HKSE:00276' s Interest Coverage Range Over the Past 10 Years
Min: 0.06 Med: 0.32 Max: 1.42
Current: 0.87

HKSE:00276's Interest Coverage is ranked worse than
91.4% of 465 companies
in the Steel industry
Industry Median: 6.2 vs HKSE:00276: 0.87

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

Mongolia Energy Interest Coverage Historical Data

The historical data trend for Mongolia Energy'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.

Mongolia Energy Interest Coverage Chart

Mongolia Energy Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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0.28

0.39

0.32

0.84

1.42

Mongolia Energy Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial															1.36	0.34	2.40	0.48	1.22

Competitive Comparison of Mongolia Energy's Interest Coverage

For the Coking Coal subindustry, Mongolia Energy'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.

Mongolia Energy's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Mongolia Energy's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Mongolia Energy's Interest Coverage falls into.

Mongolia Energy 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.

Mongolia Energy's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Mongolia Energy's Interest Expense was HK$-599 Mil. Its Operating Income was HK$851 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$4,665 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	851.331	/	-599.206
	=	1.42

Mongolia Energy's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Mongolia Energy's Interest Expense was HK$-339 Mil. Its Operating Income was HK$413 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$4,601 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	412.666	/	-339.164
	=	1.22

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

Mongolia Energy (HKSE:00276) 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 .

Mongolia Energy Interest Coverage Related Terms

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

Mongolia Energy (HKSE:00276) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Mongolia Energy Corp Ltd (HKSE:00276) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MOAEF:USA NWW:Germany

Address

118 Connaught Road West, 17th Floor, Hong Kong, HKG

Website

http://www.mongolia-energy.com

Mongolia Energy Corp Ltd is an investment holding company. The company's principal business is coal mining and exploration which is operated by its indirect wholly-owned subsidiary in Mongolia. Its principal project is the Khushuut Coking Coal Project in Western Mongolia, it also has interest in the Gobi Altay and Olon Bulag project. The Khushuut Coal Mine is located approximately 1,350 km west of Ulaanbaatar in the Khovd Province of Western Mongolia. It is about 311 km from the Xinjiang Takeshiken border, connecting the Khushuut Road. The group is principally engaged in mining, processing and sale of coal in the PRC and Mongolia. Mongolia Energy derives all of its revenue from Coal mining. Geographically company derives a majority of its revenue from PRC.

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