Kwong Luen Engineering Holdings (HKSE:01413) Interest Coverage : 24.35 (As of Sep. 2023)

Kwong Luen Engineering Holdings Interest Coverage Chart

Kwong Luen Engineering Holdings Semi-Annual Data
	Mar18	Mar19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial					141.00	-	7.28	-	24.35

Competitive Comparison of Kwong Luen Engineering Holdings's Interest Coverage

For the Engineering & Construction subindustry, Kwong Luen Engineering Holdings'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.

Kwong Luen Engineering Holdings's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Kwong Luen Engineering Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kwong Luen Engineering Holdings's Interest Coverage falls into.

Kwong Luen Engineering Holdings 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Kwong Luen Engineering Holdings'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, Kwong Luen Engineering Holdings's Interest Expense was HK$-0.7 Mil. Its Operating Income was HK$0.0 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$2.0 Mil.

Kwong Luen Engineering Holdings's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Kwong Luen Engineering Holdings's Interest Expense was HK$-0.4 Mil. Its Operating Income was HK$10.4 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1.7 Mil.

* 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.

Kwong Luen Engineering Holdings  (HKSE:01413) 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 .

Kwong Luen Engineering Holdings Interest Coverage Related Terms

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Kwong Luen Engineering Holdings (HKSE:01413) Business Description