Wang On Group (HKSE:01222) Interest Coverage : 0 (At Loss) (As of Sep. 2023)

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What is Wang On Group 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. Wang On Group's Operating Income for the six months ended in Sep. 2023 was HK$-15 Mil. Wang On Group's Interest Expense for the six months ended in Sep. 2023 was HK$-173 Mil. did not have earnings to cover the interest expense. 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. Wang On Group 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 Wang On Group's Interest Coverage or its related term are showing as below:

HKSE:01222' s Interest Coverage Range Over the Past 10 Years
Min: 0.08 Med: 3.21 Max: 40.89
Current: 0.08

HKSE:01222's Interest Coverage is ranked worse than
99.74% of 392 companies
in the Conglomerates industry
Industry Median: 5.08 vs HKSE:01222: 0.08

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

Wang On Group Interest Coverage Historical Data

The historical data trend for Wang On Group'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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Wang On Group Interest Coverage Chart

Wang On Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

6.30

3.21

0.38

0.17

0.36

Wang On Group 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															0.34	-	0.48	0.26	-

Competitive Comparison of Wang On Group's Interest Coverage

For the Conglomerates subindustry, Wang On Group'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.

Wang On Group's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Wang On Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Wang On Group's Interest Coverage falls into.

Wang On Group 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.

Wang On Group'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, Wang On Group's Interest Expense was HK$-288 Mil. Its Operating Income was HK$103 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$3,070 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	103.274	/	-288.359
	=	0.36

Wang On Group's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Wang On Group's Interest Expense was HK$-173 Mil. Its Operating Income was HK$-15 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$2,939 Mil.

Wang On Group did not have earnings to cover the interest expense.

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

Wang On Group (HKSE:01222) 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 .

Wang On Group Interest Coverage Related Terms

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

Wang On Group (HKSE:01222) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Wang On Group Ltd (HKSE:01222) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

39 Wang Kwong Road, Suite 3202, 32nd Floor, Skyline Tower, Kowloon Bay, Kowloon, Hong Kong, HKG

Website

https://www.wangon.com

Wang On Group Ltd is an investment holding company engaged in property development businesses. It operates in five business segments. The Property Development segment is engaged in the development of properties. The Property Investment segment is engaged in investment in industrial and commercial premises and residential units for rental or for sale. The Fresh markets segment is engaged in the management and sub-licensing of fresh markets and butchery business. The Pharmaceutical segment engages in the production and sale of pharmaceutical and health food products. The Treasury management segment engages in the provision of finance and investments in debt and other securities which earn interest income.

Wang On Group (HKSE:01222) Headlines

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