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China Leon Inspection Holding (HKSE:01586) Interest Coverage : 58.85 (As of Dec. 2024)


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What is China Leon Inspection Holding 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. China Leon Inspection Holding's Operating Income for the six months ended in Dec. 2024 was HK$97 Mil. China Leon Inspection Holding's Interest Expense for the six months ended in Dec. 2024 was HK$-2 Mil. China Leon Inspection Holding's interest coverage for the quarter that ended in Dec. 2024 was 58.85. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for China Leon Inspection Holding's Interest Coverage or its related term are showing as below:

HKSE:01586' s Interest Coverage Range Over the Past 10 Years
Min: 8.93   Med: 32.21   Max: 64.24
Current: 36.74


HKSE:01586's Interest Coverage is ranked better than
65.61% of 791 companies
in the Business Services industry
Industry Median: 12.97 vs HKSE:01586: 36.74

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


China Leon Inspection Holding Interest Coverage Historical Data

The historical data trend for China Leon Inspection Holding'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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China Leon Inspection Holding Interest Coverage Chart

China Leon Inspection Holding 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 26.58 45.12 34.03 37.01 36.74

China Leon Inspection Holding 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 39.01 54.49 27.71 27.70 58.85

Competitive Comparison of China Leon Inspection Holding's Interest Coverage

For the Specialty Business Services subindustry, China Leon Inspection Holding'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.


China Leon Inspection Holding's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, China Leon Inspection Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Leon Inspection Holding's Interest Coverage falls into.


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China Leon Inspection Holding 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.

China Leon Inspection Holding'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, China Leon Inspection Holding's Interest Expense was HK$-6 Mil. Its Operating Income was HK$209 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$58 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*209.02/-5.689
=36.74

China Leon Inspection Holding's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, China Leon Inspection Holding's Interest Expense was HK$-2 Mil. Its Operating Income was HK$97 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$58 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*97.162/-1.651
=58.85

* 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.


China Leon Inspection Holding  (HKSE:01586) 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 .


China Leon Inspection Holding Interest Coverage Related Terms

Thank you for viewing the detailed overview of China Leon Inspection Holding's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


China Leon Inspection Holding Business Description

Traded in Other Exchanges
N/A
Address
5 Canton Road, Suite 1015, 10th floor, Ocean Centre, Tsim Sha Tsui, Kowloon, Harbour, HKG
China Leon Inspection Holding Ltd is a coal testing inspection services provider. The business scope of the company includes Testing services, Surveying services, and witnessing and Ancillary services. Testing services focus on the quality assurance of coal; Surveying services include a draft survey to determine or verify the coal quantity, and it also provide witnessing services by observing testing and inspection activities conducted by the counterparties of its customers to detect dishonesty or abnormality.
Executives
Li Xiangli 2103 Interests held jointly with another person
Liu Yi 2101 Beneficial owner
Wei Yajuan 2202 Interest of your spouse
Zhang Aiying 2103 Interests held jointly with another person
Leon Cornerstone Investment Holding Limited 2101 Beneficial owner
Swan Stone Investment Holding Limited 2101 Beneficial owner
Hawk Flying Investment Holding Limited 2101 Beneficial owner
Liu Yi 2101 Beneficial owner
Liu Yi 2103 Interests held jointly with another person
Asian Equity Special Opportunities Portfolio Master Fund Limited 2101 Beneficial owner
Rays Capital Partners Limited 2102 Investment manager
Ruan David Ching Chi 2201 Interest of corporation controlled by you

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