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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. Majestic Dragon AeroTech Holdings's
Operating Income
for the
six
months ended in Mar. 2026 was HK$-8.9 Mil. Majestic Dragon AeroTech Holdings's Interest Expense for the
six
months ended in Mar. 2026 was HK$-0.1 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Majestic Dragon AeroTech Holdings's Interest Coverage or its related term are showing as below:
HKSE:00918'
s Interest Coverage Range Over the Past 10 Years
Min: 1.81 Med: 5.59 Max: 62.02
Current: 3.3
HKSE:00918's Interest Coverage is ranked worse than 60.48% of 744
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.36
vs HKSE:00918: 3.30
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 .
Majestic Dragon AeroTech Holdings Interest Coverage Related Terms
Majestic Dragon AeroTech Holdings Interest Coverage Historical Data
* 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.
HKSE:00918 vs RL, LEVI, VFC: Interest Coverage Comparison
For the Apparel Manufacturing subindustry, Majestic Dragon AeroTech 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.
Majestic Dragon AeroTech Holdings Interest Coverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Majestic Dragon AeroTech Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Majestic Dragon AeroTech Holdings's Interest Coverage falls into.
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:
Majestic Dragon AeroTech Holdings did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
Majestic Dragon AeroTech Holdings (HKSE:00918) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Majestic Dragon AeroTech Holdings and its competitors. Over the past decade, Majestic Dragon AeroTech Holdings' Interest Coverage has ranged from 1.81 to 62.02. According to the industry distribution chart, Majestic Dragon AeroTech Holdings ranks #450 out of 744 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 60.5%.
Is Majestic Dragon AeroTech Holdings' Interest Coverage too high?
Majestic Dragon AeroTech Holdings' current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 1.81 to a high of 62.02. Based on the distribution chart, Majestic Dragon AeroTech Holdings ranks #450 out of 744 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Majestic Dragon AeroTech Holdings has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Majestic Dragon AeroTech Holdings' Interest Coverage compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Majestic Dragon AeroTech Holdings ranks #450 out of 744 companies for Interest Coverage. This places Majestic Dragon AeroTech Holdings in the lower half of its industry. The industry median Interest Coverage is 5.36. Historically, Majestic Dragon AeroTech Holdings' own Interest Coverage has ranged from 1.81 to 62.02 over the past decade. 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 Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.36, based on 744 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. 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 Majestic Dragon AeroTech Holdings and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Majestic Dragon AeroTech Holdings's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Majestic Dragon AeroTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, Majestic Dragon AeroTech Holdings (HKSE:00918) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.30, compared to a current price of HK$2.35 — trading 681.7% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Majestic Dragon AeroTech Holdings' overall GF Score™ is 39/100 with 6 warning signs to review. 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 Majestic Dragon AeroTech Holdings (HKSE:00918), the current Interest Coverage is 0 (At Loss) as of Mar. 2026. 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.
Is Majestic Dragon AeroTech Holdings (HKSE:00918) Overvalued in 2026?
Based on GuruFocus' analysis, Majestic Dragon AeroTech Holdings stock appears to be overvalued.
The current stock price of HK$2.35 is trading 681.7% above its estimated GF Value™ of HK$0.30.
GuruFocus considers Majestic Dragon AeroTech Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00918:
Interest Coverage: 0 (At Loss)
GF Value™: HK$0.30 vs. price of HK$2.35 (681.7% above fair value)
No single metric tells the full story. See the HKSE:00918 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Majestic Dragon AeroTech Holdings Ltd along with its subsidiaries, is principally engaged in the wholesale of consumer products including timepieces and accessories, garment and sportswear products, property investment, and provision of marketing services. Its segment includes Wholesale business, Property investment, and Unmanned aerial vehicles business. Maximum revenue is generated from the Wholesale Business. Geographically, the company derives key revenue from Mainland China followed by the Middle East, Hong Kong, Africa and Taiwan.
39GF Score
Get the complete analysis for HKSE:00918
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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