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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. Arts Optical International Holdings's
Operating Income
for the
six
months ended in Dec. 2025 was HK$56 Mil. Arts Optical International Holdings's Interest Expense for the
six
months ended in Dec. 2025 was HK$-6 Mil.
Arts Optical International Holdings's interest coverage for the quarter that ended in Dec. 2025 was 9.87.
The higher the ratio, the stronger the company's financial strength is.
HKSE:01120'
s Interest Coverage Range Over the Past 10 Years
Min: 2.01 Med: 3.68 Max: 32.65
Current: 3.67
HKSE:01120's Interest Coverage is ranked worse than 81.34% of 461
companies
in the Medical Devices & Instruments industry
Industry Median: 16.37
vs HKSE:01120: 3.67
Arts Optical International Holdings (HKSE:01120) 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 .
Arts Optical International Holdings Interest Coverage Related Terms
Arts Optical International 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.
Arts Optical International Holdings Interest Coverage Chart
HKSE:01120 vs ISRG, BDX, RMD: Interest Coverage Comparison
For the Medical Instruments & Supplies subindustry, Arts Optical International 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.
Arts Optical International Holdings Interest Coverage vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Arts Optical International Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Arts Optical International Holdings's Interest Coverage falls into.
Arts Optical International Holdings 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:
* 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.
Arts Optical International Holdings (HKSE:01120) has a Interest Coverage of 9.87 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arts Optical International Holdings and its competitors. This is 168% above median its historical median of 3.68. Over the past decade, Arts Optical International Holdings' Interest Coverage has ranged from 2.01 to 32.65. According to the industry distribution chart, Arts Optical International Holdings ranks #375 out of 461 companies in the Medical Devices & Instruments industry, placing it in the top 81.3%.
Is Arts Optical International Holdings' Interest Coverage too high?
Arts Optical International Holdings' current Interest Coverage of 9.87 is 168% above median its 10-year median of 3.68. Over the past 10 years, this metric has ranged from a low of 2.01 to a high of 32.65. The Medical Devices & Instruments industry median Interest Coverage is 16.37. Arts Optical International Holdings' value of 9.87 is 39.7% below this industry median. Based on the distribution chart, Arts Optical International Holdings ranks #375 out of 461 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, Arts Optical International Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arts Optical International Holdings' Interest Coverage compare to ISRG and BDX?
According to the Medical Devices & Instruments industry distribution chart, Arts Optical International Holdings ranks #375 out of 461 companies for Interest Coverage. This places Arts Optical International Holdings in the lower half of its industry. The industry median Interest Coverage is 16.37. Arts Optical International Holdings' value of 9.87 is 39.7% below this benchmark. Historically, Arts Optical International Holdings' own Interest Coverage has ranged from 2.01 to 32.65 over the past decade. While the company's 10-year median is 3.68 vs. the industry median of 16.37, Arts Optical International Holdings has consistently been below the industry average. 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 Medical Devices & Instruments company?
The median Interest Coverage among Medical Devices & Instruments companies is 16.37, based on 461 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. Arts Optical International Holdings's current Interest Coverage of 9.87 is 39.7% below the industry median. 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 Arts Optical International Holdings and its competitors. For the Medical Devices & Instruments industry, the median Interest Coverage is 16.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arts Optical International Holdings's current Interest Coverage is 9.87, which is 168% above median its own 10-year median of 3.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arts Optical International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Arts Optical International Holdings (HKSE:01120) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.99, compared to a current price of HK$0.60 — trading 39.4% below its estimated fair value. The current Interest Coverage is 9.87, which is 168% above median its 10-year median of 3.68 and 39.7% below the Medical Devices & Instruments industry median of 16.37. Arts Optical International Holdings' overall GF Score™ is 43/100 with 5 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 Arts Optical International Holdings (HKSE:01120), the current Interest Coverage is 9.87 as of Dec. 2025. 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 Arts Optical International Holdings (HKSE:01120) Overvalued in 2026?
Based on GuruFocus' analysis, Arts Optical International Holdings stock appears to be undervalued.
The current stock price of HK$0.60 is trading 39.4% below its estimated GF Value™ of HK$0.99.
GuruFocus considers Arts Optical International Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01120:
Interest Coverage: 9.87 (168% above median its 10-year median of 3.68)
GF Value™: HK$0.99 vs. price of HK$0.60 (39.4% below fair value)
Industry Position: 39.7% below the Medical Devices & Instruments median (#375 of 461)
No single metric tells the full story. See the HKSE:01120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arts Optical International Holdings Ltd is an investment holding company. Through its subsidiaries, it is engaged in the manufacturing and trading of prescription frames, sunglasses, and optical lenses as well as property holding. It operates in three divisions: Original design manufacturing, Distribution, and Lens division. The group is organized into four segments, which are sales of optical products to customers located in Europe, the United States, Asia, and other regions, of which the majority of the revenue is generated from Europe.
43GF Score
Get the complete analysis for HKSE:01120
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