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Yip's Chemical Holdings (HKSE:00408) Interest Coverage : 1.31 (As of Dec. 2024)


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What is Yip's Chemical 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. Yip's Chemical Holdings's Operating Income for the six months ended in Dec. 2024 was HK$40 Mil. Yip's Chemical Holdings's Interest Expense for the six months ended in Dec. 2024 was HK$-30 Mil. Yip's Chemical Holdings's interest coverage for the quarter that ended in Dec. 2024 was 1.31. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:00408' s Interest Coverage Range Over the Past 10 Years
Min: 0.42   Med: 5.05   Max: 12.78
Current: 0.78


HKSE:00408's Interest Coverage is ranked worse than
95.62% of 1187 companies
in the Chemicals industry
Industry Median: 9.67 vs HKSE:00408: 0.78

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


Yip's Chemical Holdings Interest Coverage Historical Data

The historical data trend for Yip's Chemical 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.

Yip's Chemical Holdings Interest Coverage Chart

Yip's Chemical 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 12.78 - - 0.42 0.78

Yip's Chemical 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 0.21 - 1.29 0.27 1.31

Competitive Comparison of Yip's Chemical Holdings's Interest Coverage

For the Specialty Chemicals subindustry, Yip's Chemical 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.


Yip's Chemical Holdings's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Yip's Chemical Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Yip's Chemical Holdings's Interest Coverage falls into.


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Yip's Chemical 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.

Yip's Chemical 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, Yip's Chemical Holdings's Interest Expense was HK$-62 Mil. Its Operating Income was HK$49 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$304 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*48.556/-62.416
=0.78

Yip's Chemical Holdings's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Yip's Chemical Holdings's Interest Expense was HK$-30 Mil. Its Operating Income was HK$40 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$304 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*39.86/-30.419
=1.31

* 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.


Yip's Chemical Holdings  (HKSE:00408) 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 .


Yip's Chemical Holdings Interest Coverage Related Terms

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


Yip's Chemical Holdings Business Description

Traded in Other Exchanges
Address
Nos. 77-79 Gloucester Road, 27th Floor, Fortis Tower, Wanchai, Hong Kong, HKG
Yip's Chemical Holdings Ltd produces petrochemical products. It has four segments, coatings, inks, lubricants, and properties. The Coatings, Inks, and Lubricants segments are in the manufacturing and trading of coatings, inks, and lubricants-related products. The Properties segment includes property investment and holding of the Group's properties not used for production plants, central administration office, and not used for other operating segments, including but not limited to properties for rental. It derives maximum revenue from Coatings Segment.
Executives
Fmr Llc 2201 Interest of corporation controlled by you
Yip Tsz Hin 2202 Interest of your spouse
Ip Chi Shing 2101 Beneficial owner
Ip Fung Kuen 2101 Beneficial owner
Fidelity Puritan Trust 2101 Beneficial owner

Yip's Chemical Holdings Headlines

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