Changzhou Evergreen Technology Co (SZSE:001324) Interest Coverage : 87.87 (As of Mar. 2024)

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What is Changzhou Evergreen Technology 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. Changzhou Evergreen Technology Co's Operating Income for the three months ended in Mar. 2024 was ¥10.5 Mil. Changzhou Evergreen Technology Co's Interest Expense for the three months ended in Mar. 2024 was ¥-0.1 Mil. Changzhou Evergreen Technology Co's interest coverage for the quarter that ended in Mar. 2024 was 87.87. 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. Changzhou Evergreen Technology Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

SZSE:001324' s Interest Coverage Range Over the Past 10 Years
Min: 19.74 Med: 40.09 Max: 602.54
Current: 51.42

SZSE:001324's Interest Coverage is ranked better than
88.89% of 819 companies
in the Transportation industry
Industry Median: 5.44 vs SZSE:001324: 51.42

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

Changzhou Evergreen Technology Co Interest Coverage Historical Data

The historical data trend for Changzhou Evergreen Technology 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.

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Changzhou Evergreen Technology Co Interest Coverage Chart

Changzhou Evergreen Technology Co Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

20.28

32.78

602.54

47.39

58.14

Changzhou Evergreen Technology Co Quarterly Data
	Dec18	Dec19	Dec20	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial									802.69	51.70	548.08	9.57	87.87

Competitive Comparison of Changzhou Evergreen Technology Co's Interest Coverage

For the Railroads subindustry, Changzhou Evergreen Technology 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.

Changzhou Evergreen Technology Co's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Changzhou Evergreen Technology Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Changzhou Evergreen Technology Co's Interest Coverage falls into.

Changzhou Evergreen Technology 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.

Changzhou Evergreen Technology 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, Changzhou Evergreen Technology Co's Interest Expense was ¥-1.1 Mil. Its Operating Income was ¥66.5 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥3.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	66.458	/	-1.143
	=	58.14

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

Here, for the three months ended in Mar. 2024, Changzhou Evergreen Technology Co's Interest Expense was ¥-0.1 Mil. Its Operating Income was ¥10.5 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥3.3 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	10.456	/	-0.119
	=	87.87

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

Changzhou Evergreen Technology Co (SZSE:001324) 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 .

Changzhou Evergreen Technology Co Interest Coverage Related Terms

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

Changzhou Evergreen Technology Co (SZSE:001324) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Changzhou Evergreen Technology Co Ltd (SZSE:001324) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 300, Hehai West Road, Xinbei District, Jiangsu, Changzhou, CHN, 213125

Website

https://www.cetrail.com

Changzhou Evergreen Technology Co Ltd is a high-tech enterprise based on the development and application of sandwich composite materials, mainly providing supporting products and integrated solutions for the interior decoration of rail transit vehicles and building interior and exterior decoration. The company has participated in the formulation of many national and industry standards such as aluminum honeycomb panels and stone honeycomb panels, creating Many industry-leading application cases are the leading enterprises in the development and industrial application of sandwich composite materials in China.

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