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Homeinns Hotel Group (Homeinns Hotel Group) Interest Coverage : 40.30 (As of Sep. 2015)


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What is Homeinns Hotel Group 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. Homeinns Hotel Group's Operating Income for the three months ended in Sep. 2015 was $33.6 Mil. Homeinns Hotel Group's Interest Expense for the three months ended in Sep. 2015 was $-0.8 Mil. Homeinns Hotel Group's interest coverage for the quarter that ended in Sep. 2015 was 40.30. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Homeinns Hotel Group's Interest Coverage or its related term are showing as below:


HMIN's Interest Coverage is not ranked *
in the Travel & Leisure industry.
Industry Median: 5.14
* 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.


Homeinns Hotel Group Interest Coverage Historical Data

The historical data trend for Homeinns Hotel 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.

* Premium members only.

Homeinns Hotel Group Interest Coverage Chart

Homeinns Hotel Group Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.35 2.29 9.69 15.34 15.75

Homeinns Hotel Group Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 18.06 - 23.44 40.30 3.39

Competitive Comparison of Homeinns Hotel Group's Interest Coverage

For the Lodging subindustry, Homeinns Hotel 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.


Homeinns Hotel Group's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Homeinns Hotel Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Homeinns Hotel Group's Interest Coverage falls into.



Homeinns Hotel 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.

Homeinns Hotel Group's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, Homeinns Hotel Group's Interest Expense was $-6.7 Mil. Its Operating Income was $103.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $53.5 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2014 )/Interest Expense (A: Dec. 2014 )
=-1*103.52/-6.748
=15.34

Homeinns Hotel Group's Interest Coverage for the quarter that ended in Sep. 2015 is calculated as

Here, for the three months ended in Sep. 2015, Homeinns Hotel Group's Interest Expense was $-0.8 Mil. Its Operating Income was $33.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $47.7 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2015 )/Interest Expense (Q: Sep. 2015 )
=-1*33.568/-0.833
=40.30

* 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.


Homeinns Hotel Group  (NAS:HMIN) 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 .


Homeinns Hotel Group Interest Coverage Related Terms

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Homeinns Hotel Group (Homeinns Hotel Group) Business Description

Traded in Other Exchanges
N/A
Address
Homeinns Hotel Group was incorporated in the Cayman Islands on May 2006. The Company develops and operates economy hotels across China under its "Home Inn", "Yitel" and its recently acquired "Motel 168" brands. As of December 31, 2013, the Company had 2,180 hotels in operation, including 872 leased-and-operated hotels and 1,308 franchised-and-managed hotels, with approximately 256,555 rooms located in 287 cities across China, and an additional 161 hotels under development. It competes with other economy hotel chains, such as Jinjiang Star, 7 Days Inn, Han Ting, Green Tree Inn and Super 8, as well as various regional and local economy hotel chains.

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