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Hot Chili (ASX:HCH) Interest Coverage : 0 (At Loss) (As of Dec. 2023)


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What is Hot Chili 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. Hot Chili's Operating Income for the six months ended in Dec. 2023 was A$-4.58 Mil. Hot Chili's Interest Expense for the six months ended in Dec. 2023 was A$-0.02 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


ASX:HCH's Interest Coverage is not ranked *
in the Metals & Mining industry.
Industry Median: No Debt
* 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.


Hot Chili Interest Coverage Historical Data

The historical data trend for Hot Chili'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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Hot Chili Interest Coverage Chart

Hot Chili Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Interest Coverage
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Hot Chili Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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Competitive Comparison of Hot Chili's Interest Coverage

For the Copper subindustry, Hot Chili'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.


Hot Chili's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Hot Chili's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hot Chili's Interest Coverage falls into.



Hot Chili 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.

Hot Chili's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Hot Chili's Interest Expense was A$-0.05 Mil. Its Operating Income was A$-5.67 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.21 Mil.

Hot Chili did not have earnings to cover the interest expense.

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

Here, for the six months ended in Dec. 2023, Hot Chili's Interest Expense was A$-0.02 Mil. Its Operating Income was A$-4.58 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.14 Mil.

Hot Chili did not have earnings to cover the interest expense.

* 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.


Hot Chili  (ASX:HCH) 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 .


Hot Chili Interest Coverage Related Terms

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


Hot Chili (ASX:HCH) Business Description

Traded in Other Exchanges
Address
768 Canning Highway, First Floor, Applecross, WA, AUS, 6153
Hot Chili Ltd is a mineral exploration company with assets in Chile. It aims to build shareholder value through the growth and development of its high-quality Costa Fuego copper-gold project located in a low elevation, accessible region of northern Chile. With substantial mineral resources and an active drill program testing new targets, Hot Chili provides substantial leverage to the copper price due to the size, quality and location of its resource base. Costa Fuego has an indicated resource of 2.8Mt Cu, 2.6Moz Au and 67kt of Mo (in 725Mt) and inferred resource of 0.6 Mt Cu, 1.2 Moz Au and 13kt Mo (in 202Mt).

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