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CHOLF (China Oilfield Services) Interest Coverage : 7.71 (As of Sep. 2024)


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What is China Oilfield Services 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. China Oilfield Services's Operating Income for the three months ended in Sep. 2024 was $219 Mil. China Oilfield Services's Interest Expense for the three months ended in Sep. 2024 was $-28 Mil. China Oilfield Services's interest coverage for the quarter that ended in Sep. 2024 was 7.71. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for China Oilfield Services's Interest Coverage or its related term are showing as below:

CHOLF' s Interest Coverage Range Over the Past 10 Years
Min: 1.03   Med: 4.08   Max: 15.19
Current: 6.38


CHOLF's Interest Coverage is ranked better than
50.75% of 729 companies
in the Oil & Gas industry
Industry Median: 6.06 vs CHOLF: 6.38

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


China Oilfield Services Interest Coverage Historical Data

The historical data trend for China Oilfield Services'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.

China Oilfield Services Interest Coverage Chart

China Oilfield Services Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.08 6.08 4.05 3.65 5.07

China Oilfield Services Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 6.32 5.45 5.09 7.63 7.71

Competitive Comparison of China Oilfield Services's Interest Coverage

For the Oil & Gas Equipment & Services subindustry, China Oilfield Services'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.


China Oilfield Services's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, China Oilfield Services's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Oilfield Services's Interest Coverage falls into.



China Oilfield Services 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.

China Oilfield Services'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, China Oilfield Services's Interest Expense was $-136 Mil. Its Operating Income was $688 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,203 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*688.166/-135.766
=5.07

China Oilfield Services's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, China Oilfield Services's Interest Expense was $-28 Mil. Its Operating Income was $219 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,049 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*218.872/-28.374
=7.71

* 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.


China Oilfield Services  (OTCPK:CHOLF) 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 .


China Oilfield Services Interest Coverage Related Terms

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


China Oilfield Services Business Description

Traded in Other Exchanges
Address
201 Haiyou Avenue, Yanjiao Economic & Technological Development Zone, Hebei Province, Sanhe City, CHN, 065201
China Oilfield Services Ltd is engaged in the provision of oilfield services including drilling services, well services, marine support services, and geophysical acquisition and surveying services. It operates in four segments namely the drilling services segment offers oilfield drilling services, the well services segment offers logging and downhole services, the marine support services segment is engaged in the transportation of materials, supplies, and personnel to offshore facilities, moving and positioning drilling structures, and the geophysical acquisition and surveying services segment is engaged in the provision of offshore seismic data acquisition and marine surveying.