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Lam Soon (Hong Kong) (HKSE:00411) Interest Coverage : 1,253.49 (As of Dec. 2024)


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What is Lam Soon (Hong Kong) 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. Lam Soon (Hong Kong)'s Operating Income for the six months ended in Dec. 2024 was HK$204 Mil. Lam Soon (Hong Kong)'s Interest Expense for the six months ended in Dec. 2024 was HK$-0 Mil. Lam Soon (Hong Kong)'s interest coverage for the quarter that ended in Dec. 2024 was 1,253.49. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Lam Soon (Hong Kong) Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Lam Soon (Hong Kong)'s Interest Coverage or its related term are showing as below:

HKSE:00411' s Interest Coverage Range Over the Past 10 Years
Min: 24.96   Med: 799.33   Max: 6259.27
Current: 934.9


HKSE:00411's Interest Coverage is ranked better than
93.89% of 1474 companies
in the Consumer Packaged Goods industry
Industry Median: 8.695 vs HKSE:00411: 934.90

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


Lam Soon (Hong Kong) Interest Coverage Historical Data

The historical data trend for Lam Soon (Hong Kong)'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.

Lam Soon (Hong Kong) Interest Coverage Chart

Lam Soon (Hong Kong) Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,565.06 1,387.27 848.36 236.63 750.30

Lam Soon (Hong Kong) 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 237.77 235.45 973.40 512.69 1,253.49

Competitive Comparison of Lam Soon (Hong Kong)'s Interest Coverage

For the Packaged Foods subindustry, Lam Soon (Hong Kong)'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.


Lam Soon (Hong Kong)'s Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Lam Soon (Hong Kong)'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where Lam Soon (Hong Kong)'s Interest Coverage falls into.


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Lam Soon (Hong Kong) 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.

Lam Soon (Hong Kong)'s Interest Coverage for the fiscal year that ended in Jun. 2024 is calculated as

Here, for the fiscal year that ended in Jun. 2024, Lam Soon (Hong Kong)'s Interest Expense was HK$-0 Mil. Its Operating Income was HK$191 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2024 )/Interest Expense (A: Jun. 2024 )
=-1*190.576/-0.254
=750.30

Lam Soon (Hong Kong)'s Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Lam Soon (Hong Kong)'s Interest Expense was HK$-0 Mil. Its Operating Income was HK$204 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$10 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*204.319/-0.163
=1,253.49

* 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.


Lam Soon (Hong Kong)  (HKSE:00411) 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 .


Lam Soon (Hong Kong) Interest Coverage Related Terms

Thank you for viewing the detailed overview of Lam Soon (Hong Kong)'s Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Lam Soon (Hong Kong) Business Description

Traded in Other Exchanges
N/A
Address
21 Dai Fu Street, Lam Soon Building, Tai Po Industrial Estate, Tai Po, New Territories, Hong Kong, HKG
Lam Soon (Hong Kong) Ltd is an investment holding company. It is engaged in the manufacturing of food and detergent products. The company's business segments, which are based on its activities are Food and Home Care. The food segment includes the manufacturing and distribution of food products including flour, edible oils, and vegetable fats. The Home Care segment includes the manufacturing and distribution of household cleaning products including liquid dishwashing detergent, laundry powder, liquid laundry detergent, fabric softener, floor cleaner, and industrial marble cleanser. It generates the majority of the revenue from the Food segment activities. It has operations in Hong Kong, and international countries, of which the majority of the revenue is derived from Mainland China.
Executives
Davos Investment Holdings Private Limited
Guoline Capital Assets Limited
Hong Leong Investment Holdings Pte. Ltd.
Kwek Leng Kee
Quek Leng Chan
Whang Sun Tze 2101 Beneficial owner

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