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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. Dufu Liquor Group's
Operating Income
for the
six
months ended in Mar. 2026 was HK$-39.54 Mil. Dufu Liquor Group's Interest Expense for the
six
months ended in Mar. 2026 was HK$-1.16 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 Dufu Liquor Group's Interest Coverage or its related term are showing as below:
HKSE:00986's Interest Coverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 7.565 * Ranked among companies with meaningful Interest Coverage only.
Dufu Liquor Group (HKSE:00986) 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 .
Dufu Liquor Group Interest Coverage Related Terms
Dufu Liquor Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Dufu Liquor Group'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.
For the Luxury Goods subindustry, Dufu Liquor Group'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.
Dufu Liquor Group Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Dufu Liquor Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Dufu Liquor Group'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:
Dufu Liquor Group 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?
Dufu Liquor Group (HKSE:00986) 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 Dufu Liquor Group and its competitors. According to the industry distribution chart, Dufu Liquor Group ranks #999999 out of 830 companies in the Retail - Cyclical industry.
Is Dufu Liquor Group's Interest Coverage too high?
Dufu Liquor Group's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Dufu Liquor Group ranks #999999 out of 830 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Dufu Liquor Group has a GF Score™ of 31/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Dufu Liquor Group's Interest Coverage compare to TPR?
According to the Retail - Cyclical industry distribution chart, Dufu Liquor Group ranks #999999 out of 830 companies for Interest Coverage. This places Dufu Liquor Group in the lower half of its industry. The industry median Interest Coverage is 7.57. 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.57, based on 830 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 Dufu Liquor Group and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dufu Liquor Group'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 Dufu Liquor Group stock overvalued right now?
Based on GuruFocus' analysis, Dufu Liquor Group (HKSE:00986) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.50, compared to a current price of HK$0.26 — trading 48% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Dufu Liquor Group's overall GF Score™ is 31/100 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 Dufu Liquor Group (HKSE:00986), 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 Dufu Liquor Group (HKSE:00986) Overvalued in 2026?
Based on GuruFocus' analysis, Dufu Liquor Group stock appears to be undervalued.
The current stock price of HK$0.26 is trading 48% below its estimated GF Value™ of HK$0.50.
GuruFocus considers Dufu Liquor Group to be Possible Value Trap.
Key valuation signals for HKSE:00986:
Interest Coverage: 0 (At Loss)
GF Value™: HK$0.50 vs. price of HK$0.26 (48% below fair value)
No single metric tells the full story. See the HKSE:00986 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dufu Liquor Group Ltd Formerly China Environmental Energy Investment Ltd is an investment holding company engaged in the purchase and sale of gold and diamonds. The group's segments are the Design and marketing of jewelry and Money Lending. The design and marketing of jewelry segment generates maximum revenue and includes the design of jewelry, OEM, and sales and marketing of jewelry. The group has a business presence in Hong Kong, the PRC, and other countries.
31GF Score
Get the complete analysis for HKSE:00986
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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