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Towngas Smart Energy Co (HKSE:01083) Interest Coverage : 2.77 (As of Dec. 2024)


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What is Towngas Smart Energy Co 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. Towngas Smart Energy Co's Operating Income for the six months ended in Dec. 2024 was HK$1,015 Mil. Towngas Smart Energy Co's Interest Expense for the six months ended in Dec. 2024 was HK$-366 Mil. Towngas Smart Energy Co's interest coverage for the quarter that ended in Dec. 2024 was 2.77. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Towngas Smart Energy Co's Interest Coverage or its related term are showing as below:

HKSE:01083' s Interest Coverage Range Over the Past 10 Years
Min: 2.17   Med: 4.27   Max: 5.75
Current: 2.73


HKSE:01083's Interest Coverage is ranked worse than
62.33% of 430 companies
in the Utilities - Regulated industry
Industry Median: 3.61 vs HKSE:01083: 2.73

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


Towngas Smart Energy Co Interest Coverage Historical Data

The historical data trend for Towngas Smart Energy Co'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.

Towngas Smart Energy Co Interest Coverage Chart

Towngas Smart Energy Co 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 4.39 3.67 2.17 2.23 2.73

Towngas Smart Energy Co 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 1.83 2.09 2.38 2.68 2.77

Competitive Comparison of Towngas Smart Energy Co's Interest Coverage

For the Utilities - Regulated Gas subindustry, Towngas Smart Energy Co'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.


Towngas Smart Energy Co's Interest Coverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Towngas Smart Energy Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Towngas Smart Energy Co's Interest Coverage falls into.


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Towngas Smart Energy Co 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.

Towngas Smart Energy Co'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, Towngas Smart Energy Co's Interest Expense was HK$-720 Mil. Its Operating Income was HK$1,965 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$11,857 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*1964.712/-720.378
=2.73

Towngas Smart Energy Co's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Towngas Smart Energy Co's Interest Expense was HK$-366 Mil. Its Operating Income was HK$1,015 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$11,857 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*1014.653/-365.641
=2.77

* 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.


Towngas Smart Energy Co  (HKSE:01083) 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 .


Towngas Smart Energy Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Towngas Smart Energy Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Towngas Smart Energy Co Business Description

Traded in Other Exchanges
Address
363 Java Road, North Point, 23rd Floor, Hong Kong, HKG
Towngas Smart Energy Co Ltd is an investment holding company engaged in the sales of piped gas and other types of energy, the construction of gas pipelines, the sale of gas appliances and related products, and other value-added services in the People's Republic of China. It has four operating segments; Sales of piped gas and energy including Sales of piped gas (mainly natural gas) and other types of energy, Gas connection include Construction of gas pipeline networks under gas connection contracts, Renewable energy business includes Sales of renewable energy (mainly photovoltaic power) and other related energy and services and Extended business including Sales of gas-related household appliances and related products, and other related value-added services.
Executives
Lee Ka Kit 2501 Other
Lee Shau Kee 2201 Interest of corporation controlled by you
Henderson Development Limited 2201 Interest of corporation controlled by you
Planwise Properties Limited 2101 Beneficial owner
Towngas Investment Company Limited 2201 Interest of corporation controlled by you
Faxson Investment Limited 2201 Interest of corporation controlled by you
Towngas International Company Limited 2201 Interest of corporation controlled by you
Hong Kong & China Gas (china) Limited 2101 Beneficial owner
The Hong Kong And China Gas Company Limited 2201 Interest of corporation controlled by you
Rimmer (cayman) Limited 2301 Trustee
Riddick (cayman) Limited 2301 Trustee
Hopkins (cayman) Limited 2201 Interest of corporation controlled by you
Henderson Land Development Company Limited 2201 Interest of corporation controlled by you
Industrial And Commercial Bank Of China Limited 2201 Interest of corporation controlled by you
Tang Kok Yew 2201 Interest of corporation controlled by you

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