New Oriental Education & Technology Group (New Oriental Education & Technology Group) Interest Coverage

: N/A (As of Nov. 2023)

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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. New Oriental Education & Technology Group's Operating Income for the three months ended in Nov. 2023 was $21 Mil. New Oriental Education & Technology Group's Interest Expense for the three months ended in Nov. 2023 was $0 Mil. GuruFocus does not calculate 's interest coverage with the available data. 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. New Oriental Education & Technology Group Inc has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for New Oriental Education & Technology Group's Interest Coverage or its related term are showing as below:

EDU's Interest Coverage is not ranked ^*
in the Education industry.
Industry Median: 14.295
* Ranked among companies with meaningful Interest Coverage only.

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

New Oriental Education & Technology Group Interest Coverage Historical Data

The historical data trend for New Oriental Education & Technology 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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New Oriental Education & Technology Group Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Interest Coverage

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190.19

86.23

22.09

268.81

New Oriental Education & Technology Group Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
Interest Coverage	Get a 7-Day Free Trial															N/A	N/A	N/A	N/A	N/A

Competitive Comparison

For the Education & Training Services subindustry, New Oriental Education & Technology 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.

New Oriental Education & Technology Group Interest Coverage Distribution

For the Education industry and Consumer Defensive sector, New Oriental Education & Technology Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where New Oriental Education & Technology Group's Interest Coverage falls into.

New Oriental Education & Technology 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.

New Oriental Education & Technology Group's Interest Coverage for the fiscal year that ended in May. 2023 is calculated as

Here, for the fiscal year that ended in May. 2023, New Oriental Education & Technology Group's Interest Expense was $-1 Mil. Its Operating Income was $190 Mil. And its Long-Term Debt & Capital Lease Obligation was $303 Mil.

Interest Coverage	=	-1	*	Operating Income (A: May. 2023 )	/	Interest Expense (A: May. 2023 )
	=	-1	*	190.046	/	-0.707
	=	268.81

New Oriental Education & Technology Group's Interest Coverage for the quarter that ended in Nov. 2023 is calculated as

Here, for the three months ended in Nov. 2023, New Oriental Education & Technology Group's Interest Expense was $0 Mil. Its Operating Income was $21 Mil. And its Long-Term Debt & Capital Lease Obligation was $344 Mil.

GuruFocus does not calculate New Oriental Education & Technology Group's interest coverage with the available data.

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

New Oriental Education & Technology Group (NYSE:EDU) 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 .

New Oriental Education & Technology Group Interest Coverage Related Terms

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New Oriental Education & Technology Group (New Oriental Education & Technology Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » New Oriental Education & Technology Group Inc (NYSE:EDU) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

EDUN:Mexico 09901:Hong Kong 0K75:UK N1U0:Germany E1DU34:Brazil

Address

No. 6 Hai Dian Zhong Street, Haidian District, Beijing, CHN, 100080

Website

https://www.neworiental.org

New Oriental is a leading private education provider in China. K-9 academic after-school tutoring used to account for 50%-60% of New Oriental's revenue before the regulatory crackdown in 2021. After terminating its K-9 academic after-school tutoring business, New Oriental has identified a few new initiatives such as nonacademic tutoring and intelligent learning systems and devices. The remaining businesses include high school academic after-school tutoring and overseas-related test preparation and consulting business. It also owns 55.7% of East Buy (HKG: 01797), a market leader in livestreaming e-commerce.