Horizon Construction Development (FRA:B7H) Interest Coverage : 2.73 (As of Dec. 2024)

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What is Horizon Construction Development 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. Horizon Construction Development's Operating Income for the six months ended in Dec. 2024 was €152 Mil. Horizon Construction Development's Interest Expense for the six months ended in Dec. 2024 was €-56 Mil. Horizon Construction Development's interest coverage for the quarter that ended in Dec. 2024 was 2.73. 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. Horizon Construction Development Ltd interest coverage is 2.38, which is low.

The historical rank and industry rank for Horizon Construction Development's Interest Coverage or its related term are showing as below:

FRA:B7H' s Interest Coverage Range Over the Past 10 Years
Min: 1.92 Med: 2.38 Max: 2.9
Current: 2.38

FRA:B7H's Interest Coverage is ranked worse than
83.35% of 793 companies
in the Business Services industry
Industry Median: 13.32 vs FRA:B7H: 2.38

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

Horizon Construction Development Interest Coverage Historical Data

The historical data trend for Horizon Construction Development'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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Horizon Construction Development Interest Coverage Chart

Horizon Construction Development Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

2.90

2.34

1.92

2.42

2.38

Horizon Construction Development Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Interest Coverage	Get a 7-Day Free Trial			2.26	1.67	3.32	2.00	2.73

Competitive Comparison of Horizon Construction Development's Interest Coverage

For the Rental & Leasing Services subindustry, Horizon Construction Development'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.

Horizon Construction Development's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Horizon Construction Development's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Horizon Construction Development's Interest Coverage falls into.

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Horizon Construction Development 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.

Horizon Construction Development's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Horizon Construction Development's Interest Expense was €-106 Mil. Its Operating Income was €252 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,942 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	251.738	/	-105.699
	=	2.38

Horizon Construction Development's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Horizon Construction Development's Interest Expense was €-56 Mil. Its Operating Income was €152 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,942 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	151.517	/	-55.58
	=	2.73

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

Horizon Construction Development (FRA:B7H) 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 .

Horizon Construction Development Interest Coverage Related Terms

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

Horizon Construction Development Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Horizon Construction Development Ltd (FRA:B7H) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HRZCF:USA 09930:Hong Kong

Address

200 Xichang Road, No. 5, 6-610, Building 2, Minghai Center, Tianjin Pilot Free Trade Zone, Dongjiang Bonded Port Area, Tianjin, CHN

Website

http://www.hongxinjianfa.com

Horizon Construction Development Ltd is an equipment operation service provider. The Group is committed to providing one-stop comprehensive solutions of products and services for domestic and overseas clients in the construction and industrial sectors. The company has three reportable operating segments, Operating lease services, Engineering and technical services, and Asset management and other services. A majority of its revenue is generated from the Operating lease services segment which is engaged in leasing equipment and materials to customers and generating revenue mainly from rental fees payable by customers.

Horizon Construction Development Headlines

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