Luen Thai Holdings (FRA:LTJ) Interest Coverage: 1.59 (As of Dec. 2025) — 51% Below Median

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FRA:LTJ Luen Thai Holdings Ltd FRA:LTJ
43 GF Score
Price €0.02
GF Value €0.02
! 4 Warning Signs
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What is Luen Thai Holdings Interest Coverage?

Luen Thai Holdings FRA:LTJ 43 Interest Coverage is 1.59 as of Dec. 2025, which is 51% below its 10-year median of 3.26. GuruFocus rates FRA:LTJ with a GF Score™ of 43/100 and a GF Value™ of €0.02. The stock has 4 warning signs investors should review. Among 737 Manufacturing - Apparel & Accessories companies, Luen Thai Holdings ranks worse than 85.75% on this metric.

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. Luen Thai Holdings's Operating Income for the six months ended in Dec. 2025 was €6.6 Mil. Luen Thai Holdings's Interest Expense for the six months ended in Dec. 2025 was €-4.1 Mil. Luen Thai Holdings's interest coverage for the quarter that ended in Dec. 2025 was 1.59. The higher the ratio, the stronger the company's financial strength is.

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

FRA:LTJ' s Interest Coverage Range Over the Past 10 Years
Min: 0.39   Med: 3.26   Max: 15.92
Current: 1.19


FRA:LTJ's Interest Coverage is ranked worse than
85.75% of 737 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.22 vs FRA:LTJ: 1.19

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


Luen Thai Holdings  (FRA:LTJ) 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 .


Luen Thai Holdings Interest Coverage Related Terms


Luen Thai Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Luen Thai 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.

Luen Thai Holdings Interest Coverage Chart

Luen Thai Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.59 1.93 0.39 0.00 1.19

Luen Thai Holdings Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 0.10 0.00 0.00 0.82 1.59

FRA:LTJ vs RL, LEVI, VFC: Interest Coverage Comparison

For the Apparel Manufacturing subindustry, Luen Thai 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.


Luen Thai Holdings Interest Coverage vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Luen Thai Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Luen Thai Holdings's Interest Coverage falls into.


FRA:LTJ
43GF Score
Luen Thai Holdings Ltd FRA:LTJ
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Luen Thai 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.

Luen Thai Holdings's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Luen Thai Holdings's Interest Expense was €-8.6 Mil. Its Operating Income was €10.2 Mil. And its Long-Term Debt & Capital Lease Obligation was €19.2 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*10.211/-8.57
=1.19

Luen Thai Holdings's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Luen Thai Holdings's Interest Expense was €-4.1 Mil. Its Operating Income was €6.6 Mil. And its Long-Term Debt & Capital Lease Obligation was €19.2 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*6.578/-4.127
=1.59

* 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 1.59 mean?
Luen Thai Holdings (FRA:LTJ) has a Interest Coverage of 1.59 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Luen Thai Holdings and its competitors. This is 51% below median its historical median of 3.26. Over the past decade, Luen Thai Holdings' Interest Coverage has ranged from 0.39 to 15.92. According to the industry distribution chart, Luen Thai Holdings ranks #632 out of 737 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 85.8%.
Is Luen Thai Holdings' Interest Coverage too high?
Luen Thai Holdings' current Interest Coverage of 1.59 is 51% below median its 10-year median of 3.26. Over the past 10 years, this metric has ranged from a low of 0.39 to a high of 15.92. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.22. Luen Thai Holdings' value of 1.59 is 69.5% below this industry median. Based on the distribution chart, Luen Thai Holdings ranks #632 out of 737 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Luen Thai Holdings has a GF Score™ of 43/100, reflecting its overall financial health beyond just this single metric.
How does Luen Thai Holdings' Interest Coverage compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Luen Thai Holdings ranks #632 out of 737 companies for Interest Coverage. This places Luen Thai Holdings in the lower half of its industry. The industry median Interest Coverage is 5.22. Luen Thai Holdings' value of 1.59 is 69.5% below this benchmark. Historically, Luen Thai Holdings' own Interest Coverage has ranged from 0.39 to 15.92 over the past decade. While the company's 10-year median is 3.26 vs. the industry median of 5.22, Luen Thai Holdings has consistently been below the industry average. 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 Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.22, based on 737 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. Luen Thai Holdings's current Interest Coverage of 1.59 is 69.5% 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 Luen Thai Holdings and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luen Thai Holdings's current Interest Coverage is 1.59, which is 51% below median its own 10-year median of 3.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luen Thai Holdings stock overvalued right now?
Luen Thai Holdings (FRA:LTJ) has a current Interest Coverage of 1.59. The stock's GF Value™ is €0.02, compared to a current price of €0.02 — trading 5% above its estimated fair value. The current Interest Coverage is 1.59, which is 51% below median its 10-year median of 3.26 and 69.5% below the Manufacturing - Apparel & Accessories industry median of 5.22. Luen Thai Holdings' overall GF Score™ is 43/100 with 4 warning signs to review. 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 Luen Thai Holdings (FRA:LTJ), the current Interest Coverage is 1.59 as of Dec. 2025. 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.

Is Luen Thai Holdings (FRA:LTJ) Overvalued in 2026?

Based on GuruFocus' analysis, Luen Thai Holdings stock appears to be overvalued. The current stock price of €0.02 is trading 5% above its estimated GF Value™ of €0.02.

Key valuation signals for FRA:LTJ:

  • Interest Coverage: 1.59 (51% below median its 10-year median of 3.26)
  • GF Value™: €0.02 vs. price of €0.02 (5% above fair value)
  • GF Score™: 43/100 with 4 warning signs
  • Industry Position: 69.5% below the Manufacturing - Apparel & Accessories median (#632 of 737)

No single metric tells the full story. See the FRA:LTJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Luen Thai Holdings Business Description

Other Exchanges 00311:Hong Kong
Address 57 Hung To Road, Rooms 1001-1005, 10th Floor, Nanyang Plaza, Kwun Tong, Kowloon, Hong Kong, HKG
Luen Thai Holdings Ltd principally engaged in the manufacturing and trading of apparels and accessories. The Group has manufacturing plants in the People's Republic of China, Cambodia, the Philippines and Myanmar. The company has two operating segments, Apparel and Accessories. The company generates the majority of its revenue from the Apparel segment. The company has presence in United States, PRC (including Hong Kong and Macao), Europe (including the United Kingdom and Germany), South America (including Mexico and Chile), Canada, Japan, and Others. The company generates majority of revenue from United States.
43GF Score

Get the complete analysis for FRA:LTJ

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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