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Gstarsoft Co (SHSE:688657) Interest Coverage : 0 (At Loss) (As of Mar. 2024)


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What is Gstarsoft 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 Operating Income by its Interest Expense. Gstarsoft Co's Operating Income for the three months ended in Mar. 2024 was ¥-1.1 Mil. Gstarsoft Co's Interest Expense for the three months ended in Mar. 2024 was ¥-0.0 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Gstarsoft Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

SHSE:688657' s Interest Coverage Range Over the Past 10 Years
Min: 766.32   Med: 1272.63   Max: 2489.61
Current: 1119.86


SHSE:688657's Interest Coverage is ranked better than
83.31% of 1606 companies
in the Software industry
Industry Median: 28.9 vs SHSE:688657: 1119.86

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


Gstarsoft Co Interest Coverage Historical Data

The historical data trend for Gstarsoft 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.

* Premium members only.

Gstarsoft Co Interest Coverage Chart

Gstarsoft Co Annual Data
Trend Dec12 Dec13 Dec14 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 1,163.24 766.32 1,255.56 1,364.79 1,289.69

Gstarsoft Co Quarterly Data
Dec12 Dec13 Jun14 Dec14 Jun15 Dec18 Dec19 Dec20 Mar21 Jun21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 861.22 1,763.56 1,373.82 1,284.89 -

Competitive Comparison of Gstarsoft Co's Interest Coverage

For the Software - Application subindustry, Gstarsoft 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.


Gstarsoft Co's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Gstarsoft Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Gstarsoft Co's Interest Coverage falls into.



Gstarsoft 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 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.

Gstarsoft 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, Gstarsoft Co's Interest Expense was ¥-0.0 Mil. Its Operating Income was ¥50.3 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥0.3 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*50.298/-0.039
=1,289.69

Gstarsoft Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Gstarsoft Co's Interest Expense was ¥-0.0 Mil. Its Operating Income was ¥-1.1 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥0.2 Mil.

Gstarsoft Co did not have earnings to cover the interest expense.

* 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.


Gstarsoft Co  (SHSE:688657) 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 .


Gstarsoft Co Interest Coverage Related Terms

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


Gstarsoft Co (SHSE:688657) Business Description

Traded in Other Exchanges
N/A
Address
No. 286, Dongping Street, Suzhou Industrial Park, Jiangsu, Suzhou, CHN, 215123
Gstarsoft Co Ltd Is engaged in research & development, promotion and sales of CAD-related software. It provides users with Haochen CAD, Haochen 3D, Products such as Haochen CAD Viewer and related services surrounding the aforementioned products.

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