The Hongkong and Shanghai Hotels (FRA:HSG) Interest Coverage : 1.86 (As of Dec. 2023)

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What is The Hongkong and Shanghai Hotels 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. The Hongkong and Shanghai Hotels's Operating Income for the six months ended in Dec. 2023 was €52.7 Mil. The Hongkong and Shanghai Hotels's Interest Expense for the six months ended in Dec. 2023 was €-28.4 Mil. The Hongkong and Shanghai Hotels's interest coverage for the quarter that ended in Dec. 2023 was 1.86. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for The Hongkong and Shanghai Hotels's Interest Coverage or its related term are showing as below:

FRA:HSG' s Interest Coverage Range Over the Past 10 Years
Min: 1.36 Med: 9.05 Max: 13.51
Current: 1.36

FRA:HSG's Interest Coverage is ranked worse than
80.96% of 604 companies
in the Travel & Leisure industry
Industry Median: 5.15 vs FRA:HSG: 1.36

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

The Hongkong and Shanghai Hotels Interest Coverage Historical Data

The historical data trend for The Hongkong and Shanghai Hotels'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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The Hongkong and Shanghai Hotels Interest Coverage Chart

The Hongkong and Shanghai Hotels Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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7.42

1.36

The Hongkong and Shanghai Hotels Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															2.90	-	0.93	0.71	1.86

Competitive Comparison of The Hongkong and Shanghai Hotels's Interest Coverage

For the Lodging subindustry, The Hongkong and Shanghai Hotels'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.

The Hongkong and Shanghai Hotels's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Hongkong and Shanghai Hotels's Interest Coverage falls into.

The Hongkong and Shanghai Hotels 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.

The Hongkong and Shanghai Hotels'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, The Hongkong and Shanghai Hotels's Interest Expense was €-49.8 Mil. Its Operating Income was €67.9 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,878.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	67.867	/	-49.785
	=	1.36

The Hongkong and Shanghai Hotels's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, The Hongkong and Shanghai Hotels's Interest Expense was €-28.4 Mil. Its Operating Income was €52.7 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,878.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	52.72	/	-28.415
	=	1.86

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

The Hongkong and Shanghai Hotels (FRA:HSG) 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 .

The Hongkong and Shanghai Hotels Interest Coverage Related Terms

Thank you for viewing the detailed overview of The Hongkong and Shanghai Hotels's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

The Hongkong and Shanghai Hotels (FRA:HSG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » The Hongkong and Shanghai Hotels Ltd (FRA:HSG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HKSHY:USA HKSHF:USA 00045:Hong Kong

Address

2 Ice House Street, 8th Floor, St. George’s Building, Central, Hong Kong, HKG

Website

https://www.hshgroup.com

The Hongkong and Shanghai Hotels Ltd is a hotel owner and operator, domiciled in Hong Kong. The company organises itself into three segments: hotels, commercial properties, and clubs and services. The hotel's segment, which contributes the vast majority of consolidated revenue, includes the company's hotel operations under The Peninsula brand in major cities across the globe, the most significant of which is The Peninsula Hong Kong. The commercial properties segment leases office buildings, residential apartments and retail spaces. Clubs and services operate golf courses, wholesales food, and provides laundry services. Geographically, domestic operations are the most significant contributor to company revenue, followed by Other Asia, and the U.S. and Europe.

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