Tang Palace (China) Holdings (HKSE:01181) Interest Coverage : 3.87 (As of Dec. 2023)

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What is Tang Palace (China) Holdings 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. Tang Palace (China) Holdings's Operating Income for the six months ended in Dec. 2023 was HK$22 Mil. Tang Palace (China) Holdings's Interest Expense for the six months ended in Dec. 2023 was HK$-6 Mil. Tang Palace (China) Holdings's interest coverage for the quarter that ended in Dec. 2023 was 3.87. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Tang Palace (China) Holdings's Interest Coverage or its related term are showing as below:

HKSE:01181' s Interest Coverage Range Over the Past 10 Years
Min: 7.29 Med: 162.68 Max: 675.86
Current: 13.03

HKSE:01181's Interest Coverage is ranked better than
67.31% of 260 companies
in the Restaurants industry
Industry Median: 6.945 vs HKSE:01181: 13.03

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

Tang Palace (China) Holdings Interest Coverage Historical Data

The historical data trend for Tang Palace (China) Holdings'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.

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Tang Palace (China) Holdings Interest Coverage Chart

Tang Palace (China) Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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10.97

7.29

13.44

13.03

Tang Palace (China) Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															12.68	-	-	21.36	3.87

Competitive Comparison of Tang Palace (China) Holdings's Interest Coverage

For the Restaurants subindustry, Tang Palace (China) 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.

Tang Palace (China) Holdings's Interest Coverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Tang Palace (China) Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tang Palace (China) Holdings's Interest Coverage falls into.

Tang Palace (China) 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:

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.

Tang Palace (China) Holdings's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Tang Palace (China) Holdings's Interest Expense was HK$-12 Mil. Its Operating Income was HK$154 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$188 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	153.592	/	-11.784
	=	13.03

Tang Palace (China) Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Tang Palace (China) Holdings's Interest Expense was HK$-6 Mil. Its Operating Income was HK$22 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$188 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	21.722	/	-5.609
	=	3.87

The higher the ratio, the stronger the company's Financial Strength is.

Tang Palace (China) Holdings (HKSE:01181) 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 .

Tang Palace (China) Holdings Interest Coverage Related Terms

Thank you for viewing the detailed overview of Tang Palace (China) Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Tang Palace (China) Holdings (HKSE:01181) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Tang Palace (China) Holdings Ltd (HKSE:01181) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TNGPF:USA

Address

No. 1 Science Museum Road, Unit 3, 10th Floor, Greenfield Tower, Concordia Plaza, Kowloon, HKG

Website

https://www.tanggong.cn

Tang Palace (China) Holdings Ltd is an investment holding company engaged in restaurant operations and food production. The primary production of the group is located in the People's Republic of China. It offers new dishes, seasonal foods, festive celebrations, basic sauce, food ingredient, and casual dining of different regional cuisines. The company has four operating segments - the Southern China region, the Eastern China region, the Northern China region, and the Western China region. Majority of its revenue is generated from the Eastern China segment. The company operates restaurants under the Soup Delice, Tang Palace, Tang's Cuisine, Tang Palace Seafood Restaurant, Canton Tea Room, Social Place, Pepper Lunch, and PappaRich, brands.

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