GST (Gai Tong Enterprise) Interest Coverage: 9.50 (As of Jun. 2025)


What is Gai Tong Enterprise Interest Coverage?

Gai Tong Enterprise GST Interest Coverage is 9.50 as of Jun. 2025.

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. Gai Tong Enterprise's Operating Income for the six months ended in Jun. 2025 was $0.36 Mil. Gai Tong Enterprise's Interest Expense for the six months ended in Jun. 2025 was $-0.04 Mil. Gai Tong Enterprise's interest coverage for the quarter that ended in Jun. 2025 was 9.50. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Gai Tong Enterprise's Interest Coverage or its related term are showing as below:


GST's Interest Coverage is not ranked *
in the Restaurants industry.
Industry Median: 6.45
* 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.

Gai Tong Enterprise  (NAS:GST) 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 .

Gai Tong Enterprise Interest Coverage Related Terms

Gai Tong Enterprise Interest Coverage Historical Data

* Premium members only.

The historical data trend for Gai Tong Enterprise'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.

Gai Tong Enterprise Interest Coverage Chart

Gai Tong Enterprise Annual Data
Trend Dec23 Dec24
Interest Coverage
5.51 9.42

Gai Tong Enterprise Semi-Annual Data
Dec23 Jun24 Dec24 Jun25
Interest Coverage N/A 4.65 14.78 9.50

GST vs : Interest Coverage Comparison

For the Restaurants subindustry, Gai Tong Enterprise'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.

Gai Tong Enterprise Interest Coverage vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Gai Tong Enterprise's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Gai Tong Enterprise's Interest Coverage falls into.


Gai Tong Enterprise 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.

Gai Tong Enterprise'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, Gai Tong Enterprise's Interest Expense was $-0.10 Mil. Its Operating Income was $0.98 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.06 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*0.98/-0.104
=9.42

Gai Tong Enterprise's Interest Coverage for the quarter that ended in Jun. 2025 is calculated as

Here, for the six months ended in Jun. 2025, Gai Tong Enterprise's Interest Expense was $-0.04 Mil. Its Operating Income was $0.36 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.04 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2025 )/Interest Expense (Q: Jun. 2025 )
=-1*0.361/-0.038
=9.50

* 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 9.50 mean?
Gai Tong Enterprise (GST) has a Interest Coverage of 9.50 as of Jun. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gai Tong Enterprise and its competitors.
Is Gai Tong Enterprise's Interest Coverage too high?
Gai Tong Enterprise's current Interest Coverage is 9.50. The Restaurants industry median Interest Coverage is 6.45. Gai Tong Enterprise's value of 9.50 is 47.3% above this industry median.
How does Gai Tong Enterprise's Interest Coverage compare to ?
Gai Tong Enterprise's Interest Coverage of 9.50 can be compared against companies in the Restaurants industry. The industry median Interest Coverage is 6.45. Gai Tong Enterprise's value of 9.50 is 47.3% above 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 Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 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. Gai Tong Enterprise's current Interest Coverage of 9.50 is 47.3% above 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 Gai Tong Enterprise and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gai Tong Enterprise's current Interest Coverage is 9.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gai Tong Enterprise stock overvalued right now?
Gai Tong Enterprise (GST) has a current Interest Coverage of 9.50. The current Interest Coverage is 9.50 and 47.3% above the Restaurants industry median of 6.45. 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 Gai Tong Enterprise (GST), the current Interest Coverage is 9.50 as of Jun. 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.

Gai Tong Enterprise Business Description

Comparable Companies
Address No. 2 Hart Avenue, 5th Floor, Kam Lung Commercial Centre, Kowloon, HKG
Ga Sai Tong Enterprise Ltd is a holding company with no business operations. The company operates through its subsidiaries engaged in restaurant operations that provide food and beverage to customers in Hong Kong.