E-House China Holdings (E-House China Holdings) Interest Coverage : 4.16 (As of Dec. 2015)

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What is E-House China Holdings 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. E-House China Holdings's Operating Income for the three months ended in Dec. 2015 was $14 Mil. E-House China Holdings's Interest Expense for the three months ended in Dec. 2015 was $-3 Mil. E-House China Holdings's interest coverage for the quarter that ended in Dec. 2015 was 4.16. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for E-House China Holdings's Interest Coverage or its related term are showing as below:

EJ's Interest Coverage is not ranked ^*
in the Real Estate industry.
Industry Median: 3.955
* 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.

E-House China Holdings Interest Coverage Historical Data

The historical data trend for E-House China Holdings'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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E-House China Holdings Interest Coverage Chart

E-House China Holdings Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

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No Debt

316.13

11.58

E-House China Holdings 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															22.85	-	3.78	2.70	4.16

Competitive Comparison of E-House China Holdings's Interest Coverage

For the Real Estate Services subindustry, E-House China Holdings'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.

E-House China Holdings's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, E-House China Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where E-House China Holdings's Interest Coverage falls into.

E-House China Holdings 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.

E-House China Holdings's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, E-House China Holdings's Interest Expense was $-11 Mil. Its Operating Income was $-5 Mil. And its Long-Term Debt & Capital Lease Obligation was $73 Mil.

E-House China Holdings did not have earnings to cover the interest expense.

E-House China Holdings's Interest Coverage for the quarter that ended in Dec. 2015 is calculated as

Here, for the three months ended in Dec. 2015, E-House China Holdings's Interest Expense was $-3 Mil. Its Operating Income was $14 Mil. And its Long-Term Debt & Capital Lease Obligation was $73 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2015 )	/	Interest Expense (Q: Dec. 2015 )
	=	-1	*	14.262	/	-3.431
	=	4.16

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

E-House China Holdings (NYSE:EJ) 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 .

E-House China Holdings Interest Coverage Related Terms

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E-House China Holdings (E-House China Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » E-House China Holdings Ltd (NYSE:EJ) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.ehousechina.com

E-House China Holdings Ltd was incorporated on August 27, 2004 in the Cayman Islands as an exempted company with limited liability under the Companies Law of the Cayman Islands. The Company, through its subsidiaries, provides services to the real estate industry, including online services, primary sales agency, secondary brokerage, information and consulting, promotional events, real estate advertising and real estate fund management services in the People's Republic of China ("PRC"). The Company's main business has traditionally been providing primary real estate agency services to real estate developers. It provides secondary real estate brokerage services, including brokerage services for both sales and rentals. Secondary real estate brokerage services accounted for 1.5% of its total revenues in 2013. As of December 31, 2013, it had a total of 53 stores, including 27 in Shanghai, 22 in Hangzhou, 3 in Hong Kong and 1 in Macau. Its real estate information and consulting services are tailored to meet the needs of developer clients at various stages of the project development and sales process and other clients with particular requests and needs. Real estate information and consulting services accounted 10.5% of its total revenues in 2013. It provides two levels of real estate information services relying upon its CRIC system: data subscription services, in which it market and sell, on a subscription basis, the use of its CRIC system; and data integration services, which provide periodic research reports and analysis that suit the specific needs and requirements of individual clients in addition to access to the CRIC system. Its consulting services include, land acquisition consulting, where the Company is retained by real estate developers as consultant or intermediary to advise on and facilitate the transfer of land development rights; project consulting, where it offers services to developers who have obtained land development rights, including project feasibility studies, analysis of the real estate transaction history of nearby development projects, marketing and advertising consulting, and development of comprehensive plans for their development projects. The Company has advertising arrangements with many Chinese national and regional consumer media outlets, including television stations, newspapers, industry publications and internet websites. It also advertises and distributes informational brochures, posters and flyers at various real estate conferences, exhibitions and trade shows. Its E-House Research and Training Institute frequently organizes seminars and workshops for real estate developers and other participants in the real estate industry. The Company created E-House Membership Club to attract real estate buyers. In the primary real estate agency services market, the Company's main competitors include World Union Real Estate Consultancy (China) Ltd., Hopefluent Group Holdings Limited, Centaline Group, SYSWIN Inc. a