Boer Power Holdings (FRA:BOE) Interest Coverage : 2.31 (As of Dec. 2023)

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What is Boer Power Holdings 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. Boer Power Holdings's Operating Income for the six months ended in Dec. 2023 was €4.01 Mil. Boer Power Holdings's Interest Expense for the six months ended in Dec. 2023 was €-1.73 Mil. Boer Power Holdings's interest coverage for the quarter that ended in Dec. 2023 was 2.31. 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. Boer Power Holdings Ltd interest coverage is 1.61, which is low.

The historical rank and industry rank for Boer Power Holdings's Interest Coverage or its related term are showing as below:

FRA:BOE' s Interest Coverage Range Over the Past 10 Years
Min: 0.29 Med: 1.54 Max: 8.34
Current: 1.61

FRA:BOE's Interest Coverage is ranked worse than
94.57% of 129 companies
in the Industrial Distribution industry
Industry Median: 8.63 vs FRA:BOE: 1.61

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

Boer Power Holdings Interest Coverage Historical Data

The historical data trend for Boer Power Holdings'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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Boer Power Holdings Interest Coverage Chart

Boer Power Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.00

0.52

1.54

1.65

1.61

Boer Power Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															2.01	0.81	2.70	1.04	2.31

Competitive Comparison of Boer Power Holdings's Interest Coverage

For the Industrial Distribution subindustry, Boer Power Holdings'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.

Boer Power Holdings's Interest Coverage Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Boer Power Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Boer Power Holdings's Interest Coverage falls into.

Boer Power Holdings 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.

Boer Power Holdings'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, Boer Power Holdings's Interest Expense was €-3.90 Mil. Its Operating Income was €6.26 Mil. And its Long-Term Debt & Capital Lease Obligation was €14.50 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	6.26	/	-3.897
	=	1.61

Boer Power Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Boer Power Holdings's Interest Expense was €-1.73 Mil. Its Operating Income was €4.01 Mil. And its Long-Term Debt & Capital Lease Obligation was €14.50 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	4.01	/	-1.734
	=	2.31

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

Boer Power Holdings (FRA:BOE) 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 .

Boer Power Holdings Interest Coverage Related Terms

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

Boer Power Holdings (FRA:BOE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Boer Power Holdings Ltd (FRA:BOE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

01685:Hong Kong

Address

Luoyang Road, Yangshi Industrial Park, Huishan District, Jiangsu Province, Wuxi, CHN, 214187

Website

http://www.boerpower.com

Boer Power Holdings Ltd is engaged in designing, manufacturing, and sale of electrical distribution equipment, and provision of electrical distribution systems solution services in the PRC. The business has two segments - IEM Solutions, which include sale of electrical distribution systems, EPC projects, and sale of electricity and Components and Spare Parts Business segment, which include components and spare parts for application on electrical distribution equipment or the basic function units of the solutions and sells such components and spare parts to the customers. Maximum revenue is generated by the IEM solutions segment.

Boer Power Holdings (FRA:BOE) Headlines

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