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Cheung Kong Holdings Ltd (OTCPK:CHEUY)
Interest Coverage
0.00 (As of Dec. 2013)

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. Cheung Kong Holdings Ltd's Operating Income for the six months ended in Dec. 2013 was $1,828 Mil. Cheung Kong Holdings Ltd's Interest Expense for the six months ended in Dec. 2013 was $0 Mil. Cheung Kong Holdings Ltd's interest coverage for the quarter that ended in Dec. 2013 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

CHEUY' s 10-Year Interest Coverage Range
Min: 0   Max: 0
Current: 0

CHEUY's Interest Coverageis ranked lower than
145% of the 749 Companies
in the Global Real Estate - General industry.

( Industry Median: 10.97 vs. CHEUY: 0.00 )

Definition

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

Cheung Kong Holdings Ltd did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt is 0, or Interest Expense is positive, then

Cheung Kong Holdings Ltd had no debt.

Cheung Kong Holdings Ltd's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, Cheung Kong Holdings Ltd's Interest Expense was $0 Mil. Its Operating Income was $2,816 Mil. And its Long-Term Debt was $5,085 Mil.

Cheung Kong Holdings Ltd had no debt.

Cheung Kong Holdings Ltd's Interest Coverage for the quarter that ended in Dec. 2013 is calculated as

Here, for the six months ended in Dec. 2013, Cheung Kong Holdings Ltd's Interest Expense was $0 Mil. Its Operating Income was $1,828 Mil. And its Long-Term Debt was $5,085 Mil.

Cheung Kong Holdings Ltd had no debt.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The higher the ratio, the stronger the company’s financial strength is.


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.


Related Terms

Operating Income, Interest Expense, Financial Strength


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Cheung Kong Holdings Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
interest_coverage At LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt Loss

Cheung Kong Holdings Ltd Semi-Annual Data

Jun09Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13
interest_coverage 60.99At Loss98.41At Loss53.97At LossAt LossAt LossAt LossAt Loss
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