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AMCO United Holding (HKSE:00630) Interest Coverage : 32.16 (As of Dec. 2024)


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What is AMCO United Holding 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. AMCO United Holding's Operating Income for the six months ended in Dec. 2024 was HK$1.61 Mil. AMCO United Holding's Interest Expense for the six months ended in Dec. 2024 was HK$-0.05 Mil. AMCO United Holding's interest coverage for the quarter that ended in Dec. 2024 was 32.16. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. AMCO United Holding Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for AMCO United Holding's Interest Coverage or its related term are showing as below:

HKSE:00630' s Interest Coverage Range Over the Past 10 Years
Min: 0.18   Med: 0.34   Max: No Debt
Current: 0.18


HKSE:00630's Interest Coverage is ranked worse than
98.83% of 426 companies
in the Conglomerates industry
Industry Median: 4.93 vs HKSE:00630: 0.18

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


AMCO United Holding Interest Coverage Historical Data

The historical data trend for AMCO United Holding'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.

AMCO United Holding Interest Coverage Chart

AMCO United Holding 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 - - - 0.34 0.18

AMCO United Holding 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 - - 9.82 - 32.16

Competitive Comparison of AMCO United Holding's Interest Coverage

For the Conglomerates subindustry, AMCO United Holding'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.


AMCO United Holding's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, AMCO United Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where AMCO United Holding's Interest Coverage falls into.


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AMCO United Holding 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.

AMCO United Holding'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, AMCO United Holding's Interest Expense was HK$-1.20 Mil. Its Operating Income was HK$0.22 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$30.90 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*0.221/-1.2
=0.18

AMCO United Holding's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, AMCO United Holding's Interest Expense was HK$-0.05 Mil. Its Operating Income was HK$1.61 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$30.90 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*1.608/-0.05
=32.16

* 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.


AMCO United Holding  (HKSE:00630) 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 .


AMCO United Holding Interest Coverage Related Terms

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


AMCO United Holding Business Description

Traded in Other Exchanges
N/A
Address
70 Queen’s Road Central, Unit 1104, Crawford House, Central, Hong Kong, HKG
AMCO United Holding Ltd is a Hong Kong-based investment holding company principally engaged in the manufacture and sale of medical equipment. The company operates its business through four segments: Medical Products Business; Plastic Products Business; Money Lending Business; and Securities Investment Business. It generates the majority of its revenue from the Medical Products Business segment. Geographically, it generates the majority of its revenue from the PRC.
Executives
Gong Hongwei 2101 Beneficial owner
Ireach Capital Fund 2102 Investment manager

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