City Developments (City Developments) Interest Coverage

: 1.58 (As of Dec. 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. City Developments's Operating Income for the six months ended in Dec. 2023 was $295 Mil. City Developments's Interest Expense for the six months ended in Dec. 2023 was $-186 Mil. City Developments's interest coverage for the quarter that ended in Dec. 2023 was 1.58. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. City Developments Ltd interest coverage is 1.49, which is low.

The historical rank and industry rank for City Developments's Interest Coverage or its related term are showing as below:

CDEVY' s Interest Coverage Range Over the Past 10 Years
Min: 0.74 Med: 5.59 Max: 6.71
Current: 1.49

CDEVY's Interest Coverage is ranked worse than
77.66% of 1352 companies
in the Real Estate industry
Industry Median: 3.995 vs CDEVY: 1.49

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

City Developments Interest Coverage Historical Data

The historical data trend for City Developments'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.

City Developments Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.62

1.25

0.74

1.49

City Developments 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																2.54	1.08	0.52	1.36	1.58

Competitive Comparison

For the Real Estate - Development subindustry, City Developments'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.

City Developments Interest Coverage Distribution

For the Real Estate industry and Real Estate sector, City Developments's Interest Coverage distribution charts can be found below:

* The bar in red indicates where City Developments's Interest Coverage falls into.

City Developments 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.

City Developments'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, City Developments's Interest Expense was $-333 Mil. Its Operating Income was $496 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,277 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	495.677	/	-333.387
	=	1.49

City Developments's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, City Developments's Interest Expense was $-186 Mil. Its Operating Income was $295 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,277 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	294.726	/	-186.047
	=	1.58

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

City Developments (OTCPK:CDEVY) 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 .

City Developments Interest Coverage Related Terms

Thank you for viewing the detailed overview of City Developments's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

City Developments (City Developments) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » City Developments Ltd (OTCPK:CDEVY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

C70.PFD:Singapore C09:Singapore

Address

9 Raffles Place, No. 12-01 Republic Plaza, Singapore, SGP, 048619

Website

http://www.cdl.com.sg

City Developments, or CDL, is a listed property group of parent company Hong Leong Group. CDL's main businesses in property development and hotel operations makes up the majority of the group's operating profit. A portfolio of investment properties underpins recurring rental income and increasing income from investment properties is a key strategy for the group in the medium term. CDL's key geography is in Singapore with almost half of the group's total assets derived there. Its expansion into international markets is focused on the United Kingdom, China and Japan. CDL privatized its hotel operations, Millennium and Copthorne in 2019.

City Developments (City Developments) Headlines

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