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K Wah International Holdings (HKSE:00173) Interest Coverage : 2.58 (As of Dec. 2024)


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What is K Wah International 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. K Wah International Holdings's Operating Income for the six months ended in Dec. 2024 was HK$595 Mil. K Wah International Holdings's Interest Expense for the six months ended in Dec. 2024 was HK$-230 Mil. K Wah International Holdings's interest coverage for the quarter that ended in Dec. 2024 was 2.58. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:00173' s Interest Coverage Range Over the Past 10 Years
Min: 2.47   Med: 142.5   Max: 455.53
Current: 2.47


HKSE:00173's Interest Coverage is ranked worse than
63.01% of 1314 companies
in the Real Estate industry
Industry Median: 3.965 vs HKSE:00173: 2.47

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


K Wah International Holdings Interest Coverage Historical Data

The historical data trend for K Wah International 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.

* Premium members only.

K Wah International Holdings Interest Coverage Chart

K Wah International Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 163.90 121.10 34.80 4.40 2.47

K Wah International Holdings Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 26.49 11.98 2.44 2.36 2.58

Competitive Comparison of K Wah International Holdings's Interest Coverage

For the Real Estate - Development subindustry, K Wah International 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.


K Wah International Holdings's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, K Wah International Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where K Wah International Holdings's Interest Coverage falls into.


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K Wah International 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.

K Wah International Holdings'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, K Wah International Holdings's Interest Expense was HK$-442 Mil. Its Operating Income was HK$1,094 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$10,807 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*1093.762/-442.038
=2.47

K Wah International Holdings's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, K Wah International Holdings's Interest Expense was HK$-230 Mil. Its Operating Income was HK$595 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$10,807 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*595.129/-230.358
=2.58

* 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.


K Wah International Holdings  (HKSE:00173) 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 .


K Wah International Holdings Interest Coverage Related Terms

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


K Wah International Holdings Business Description

Traded in Other Exchanges
Address
191 Java Road, 29th Floor, K. Wah Centre, North Point, Hong Kong, HKG
K Wah International Holdings Ltd is engaged in property development and property investment in Hong Kong and the Mainland. It derives revenue through sales of properties, rental income, hotel operation income, interest income and dividend income. It operates in two geographical areas, namely Hong Kong and the Mainland, with the majority of the revenue being generated from the Mainland.
Executives
Lui Yiu Tung, Francis 2101 Beneficial owner
Lui Wai Yu, Paddy 2101 Beneficial owner
Lui Yiu Wah, Alexander 2101 Beneficial owner
Lui Che Woo 2101 Beneficial owner
Cwl Assets (ptc) Limited 2301 Trustee
Hsbc International Trustee Limited 2301 Trustee
Favor Right Investments Limited 2101 Beneficial owner
Lui Che Woo Foundation Limited 2101 Beneficial owner
Super Focus Company Limited 2101 Beneficial owner
Star Ii Limited 2201 Interest of corporation controlled by you
Premium Capital Profits Limited 2101 Beneficial owner

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