China Specialty Glass AG (FRA:8GS) Interest Coverage: 10.90 (As of Jun. 2014)


What is China Specialty Glass AG Interest Coverage?

China Specialty Glass AG FRA:8GS Interest Coverage is 10.90 as of Jun. 2014.

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 Specialty Glass AG's Operating Income for the three months ended in Jun. 2014 was €10.2 Mil. China Specialty Glass AG's Interest Expense for the three months ended in Jun. 2014 was €-0.9 Mil. China Specialty Glass AG's interest coverage for the quarter that ended in Jun. 2014 was 10.90. The higher the ratio, the stronger the company's financial strength is.

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


FRA:8GS's Interest Coverage is not ranked *
in the Business Services industry.
Industry Median: 12.98
* 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.

China Specialty Glass AG  (FRA:8GS) 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 Specialty Glass AG Interest Coverage Related Terms

China Specialty Glass AG Interest Coverage Historical Data

* Premium members only.

The historical data trend for China Specialty Glass AG'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 Specialty Glass AG Interest Coverage Chart

China Specialty Glass AG Annual Data
Trend Dec10 Dec11 Dec12 Dec13
Interest Coverage
No Debt 164.06 10.75 7.15

China Specialty Glass AG Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 9.46 17.07 0.00 7.96 10.90

FRA:8GS vs DTII, VCON, UUU: Interest Coverage Comparison

For the Security & Protection Services subindustry, China Specialty Glass AG'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 Specialty Glass AG Interest Coverage vs Business Services Industry

For the Business Services industry and Industrials sector, China Specialty Glass AG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Specialty Glass AG's Interest Coverage falls into.


China Specialty Glass AG 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 Specialty Glass AG's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, China Specialty Glass AG's Interest Expense was €-5.2 Mil. Its Operating Income was €37.3 Mil. And its Long-Term Debt & Capital Lease Obligation was €41.7 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2013 )/Interest Expense (A: Dec. 2013 )
=-1*37.3/-5.216
=7.15

China Specialty Glass AG's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the three months ended in Jun. 2014, China Specialty Glass AG's Interest Expense was €-0.9 Mil. Its Operating Income was €10.2 Mil. And its Long-Term Debt & Capital Lease Obligation was €34.4 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2014 )/Interest Expense (Q: Jun. 2014 )
=-1*10.168/-0.933
=10.90

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 10.90 mean?
China Specialty Glass AG (FRA:8GS) has a Interest Coverage of 10.90 as of Jun. 2014. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Specialty Glass AG and its competitors.
Is China Specialty Glass AG's Interest Coverage too high?
China Specialty Glass AG's current Interest Coverage is 10.90. The Business Services industry median Interest Coverage is 12.98. China Specialty Glass AG's value of 10.90 is 16% below this industry median.
How does China Specialty Glass AG's Interest Coverage compare to DTII and VCON?
China Specialty Glass AG's Interest Coverage of 10.90 can be compared against companies in the Business Services industry. The industry median Interest Coverage is 12.98. China Specialty Glass AG's value of 10.90 is 16% 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 Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 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 Specialty Glass AG's current Interest Coverage of 10.90 is 16% 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 Specialty Glass AG and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Specialty Glass AG's current Interest Coverage is 10.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Specialty Glass AG stock overvalued right now?
China Specialty Glass AG (FRA:8GS) has a current Interest Coverage of 10.90. The current Interest Coverage is 10.90 and 16% below the Business Services industry median of 12.98. 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 Specialty Glass AG (FRA:8GS), the current Interest Coverage is 10.90 as of Jun. 2014. 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 Specialty Glass AG Business Description

Address An den Romerhuegeln 1, Grunwald, DEU, 82031
China Specialty Glass AG is a glass manufacturer in China. It develops, produces and sells specialty glass under its Hing Wah brand. It operates into three business segments namely automotive security glass; bank security glass and construction glass.