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Langham Hospitality Investments and Langham Hospitality Investments (HKSE:01270) Interest Coverage : 1.46 (As of Dec. 2023)


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What is Langham Hospitality Investments and Langham Hospitality Investments 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. Langham Hospitality Investments and Langham Hospitality Investments's Operating Income for the six months ended in Dec. 2023 was HK$261.5 Mil. Langham Hospitality Investments and Langham Hospitality Investments's Interest Expense for the six months ended in Dec. 2023 was HK$-178.8 Mil. Langham Hospitality Investments and Langham Hospitality Investments's interest coverage for the quarter that ended in Dec. 2023 was 1.46. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Langham Hospitality Investments and Langham Hospitality Investments Ltd interest coverage is 1.54, which is low.

The historical rank and industry rank for Langham Hospitality Investments and Langham Hospitality Investments's Interest Coverage or its related term are showing as below:

HKSE:01270' s Interest Coverage Range Over the Past 10 Years
Min: 0.98   Med: 2.9   Max: 6.47
Current: 1.54


HKSE:01270's Interest Coverage is ranked worse than
80.53% of 601 companies
in the Travel & Leisure industry
Industry Median: 5.22 vs HKSE:01270: 1.54

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


Langham Hospitality Investments and Langham Hospitality Investments Interest Coverage Historical Data

The historical data trend for Langham Hospitality Investments and Langham Hospitality Investments'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.

Langham Hospitality Investments and Langham Hospitality Investments Interest Coverage Chart

Langham Hospitality Investments and Langham Hospitality Investments Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.35 0.98 1.84 2.27 1.54

Langham Hospitality Investments and Langham Hospitality Investments 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 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 2.11 3.22 1.67 1.64 1.46

Competitive Comparison of Langham Hospitality Investments and Langham Hospitality Investments's Interest Coverage

For the Lodging subindustry, Langham Hospitality Investments and Langham Hospitality Investments'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.


Langham Hospitality Investments and Langham Hospitality Investments's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Langham Hospitality Investments and Langham Hospitality Investments's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Langham Hospitality Investments and Langham Hospitality Investments's Interest Coverage falls into.



Langham Hospitality Investments and Langham Hospitality Investments 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.

Langham Hospitality Investments and Langham Hospitality Investments'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, Langham Hospitality Investments and Langham Hospitality Investments's Interest Expense was HK$-312.6 Mil. Its Operating Income was HK$480.7 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.1 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*480.739/-312.566
=1.54

Langham Hospitality Investments and Langham Hospitality Investments's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Langham Hospitality Investments and Langham Hospitality Investments's Interest Expense was HK$-178.8 Mil. Its Operating Income was HK$261.5 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.1 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*261.481/-178.8
=1.46

* 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.


Langham Hospitality Investments and Langham Hospitality Investments  (HKSE:01270) 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 .


Langham Hospitality Investments and Langham Hospitality Investments Interest Coverage Related Terms

Thank you for viewing the detailed overview of Langham Hospitality Investments and Langham Hospitality Investments's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Langham Hospitality Investments and Langham Hospitality Investments (HKSE:01270) Business Description

Traded in Other Exchanges
N/A
Address
23 Harbour Road, Great Eagle Centre, Suite 2702, 27th Floor, Wanchai, Hong Kong, HKG
Langham Hospitality Investments and Langham Hospitality Investments Ltd is a holdings company involved in the lodging industry. The company operates through three business segments, Langham, Cordis, and Eaton. Langham invests in a portfolio of hotels with a focus on the Asian market. The business segments, Langham, Cordis, and Eaton are individual hotels based in Hong Kong. Langham is involved with the food, meeting, and conference space offerings at each of these hotels. The company generates all of its revenue in Hong Kong.
Executives
Great Eagle Holdings Limited 2201 Interest of corporation controlled by you
Lo Ka Shui 2201 Interest of corporation controlled by you
Hsbc International Trustee Limited 2301 Trustee

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