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 Evergrande Group's
Operating Income
for the
six
months ended in Jun. 2023 was $100 Mil. China Evergrande Group's Interest Expense for the
six
months ended in Jun. 2023 was $-1,881 Mil.
China Evergrande Group's interest coverage for the quarter that ended in Jun. 2023 was 0.05.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for China Evergrande Group's Interest Coverage or its related term are showing as below:
EGRNF's Interest Coverage is not ranked *
in the Real Estate industry.
Industry Median: 4.24 * Ranked among companies with meaningful Interest Coverage only.
China Evergrande Group (OTCPK:EGRNF) 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 Evergrande Group Interest Coverage Related Terms
China Evergrande Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for China Evergrande 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.
China Evergrande Group Interest Coverage Competitor Comparison
For the Real Estate - Development subindustry, China Evergrande 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.
China Evergrande Group Interest Coverage vs Real Estate Industry
For the Real Estate industry and Real Estate sector, China Evergrande Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where China Evergrande Group's Interest Coverage falls into.
China Evergrande 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:
* 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.
China Evergrande Group (EGRNF) has a Interest Coverage of 0.05 as of Jun. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Evergrande Group and its competitors.
Is China Evergrande Group's Interest Coverage too high?
China Evergrande Group's current Interest Coverage is 0.05. The Real Estate industry median Interest Coverage is 4.24. China Evergrande Group's value of 0.05 is 98.8% below this industry median. Overall, China Evergrande Group has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does China Evergrande Group's Interest Coverage compare to competitors?
China Evergrande Group's Interest Coverage of 0.05 can be compared against companies in the Real Estate industry. The industry median Interest Coverage is 4.24. China Evergrande Group's value of 0.05 is 98.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Real Estate company?
The median Interest Coverage among Real Estate companies is 4.24, based on 1,295 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Evergrande Group's current Interest Coverage of 0.05 is 98.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Evergrande Group and its competitors. For the Real Estate industry, the median Interest Coverage is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Evergrande Group's current Interest Coverage is 0.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Evergrande Group stock overvalued right now?
China Evergrande Group (EGRNF) has a current Interest Coverage of 0.05. The current Interest Coverage is 0.05 and 98.8% below the Real Estate industry median of 4.24. China Evergrande Group's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For China Evergrande Group (EGRNF), the current Interest Coverage is 0.05 as of Jun. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
China Evergrande Group is engaged in the property development, property investment, property management, new energy vehicle business, cultural tourism business and health industry business principally in the People's Republic of China. The company is organized into four business segments: property development, property investment, property management and other businesses. Other businesses mainly include new energy vehicle business, cultural tourism business, health industry business and investment business.
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