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Nanfang Communication Holdings (HKSE:01617) Interest Coverage : 7.61 (As of Dec. 2024)


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What is Nanfang Communication 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. Nanfang Communication Holdings's Operating Income for the six months ended in Dec. 2024 was HK$31.2 Mil. Nanfang Communication Holdings's Interest Expense for the six months ended in Dec. 2024 was HK$-4.1 Mil. Nanfang Communication Holdings's interest coverage for the quarter that ended in Dec. 2024 was 7.61. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Nanfang Communication Holdings's Interest Coverage or its related term are showing as below:

HKSE:01617' s Interest Coverage Range Over the Past 10 Years
Min: 4.43   Med: 15.29   Max: 28.07
Current: 4.52


HKSE:01617's Interest Coverage is ranked worse than
73.2% of 1601 companies
in the Hardware industry
Industry Median: 13.13 vs HKSE:01617: 4.52

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


Nanfang Communication Holdings Interest Coverage Historical Data

The historical data trend for Nanfang Communication 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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Nanfang Communication Holdings Interest Coverage Chart

Nanfang Communication Holdings 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 - - - - 4.54

Nanfang Communication Holdings Semi-Annual Data
Dec14 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 - - 1.75 - 7.61

Competitive Comparison of Nanfang Communication Holdings's Interest Coverage

For the Communication Equipment subindustry, Nanfang Communication 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.


Nanfang Communication Holdings's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Nanfang Communication Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Nanfang Communication Holdings's Interest Coverage falls into.


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Nanfang Communication 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.

Nanfang Communication Holdings'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, Nanfang Communication Holdings's Interest Expense was HK$-6.4 Mil. Its Operating Income was HK$29.1 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$169.8 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*29.084/-6.408
=4.54

Nanfang Communication Holdings's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Nanfang Communication Holdings's Interest Expense was HK$-4.1 Mil. Its Operating Income was HK$31.2 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$169.8 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*31.233/-4.105
=7.61

* 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.


Nanfang Communication Holdings  (HKSE:01617) 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 .


Nanfang Communication Holdings Interest Coverage Related Terms

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


Nanfang Communication Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 1, Cencun Road, Luoyang Town, Wujin District, Jiangsu Province, Changzhou, CHN
Nanfang Communication Holdings Ltd manufactures and supplies a wide range of optical fiber cable components. The products of the company are used in different applications, such as mobile communication networks, internet networks, and fixed telephone networks in the telecommunications industry, and can be installed under different conditions. The company's products include optical fiber cables, layer-stranded optical fiber products, copper-made communication cables, and others. The company's operation is principally in the People's Republic of China.
Executives
Shi Ming 2101 Beneficial owner
Yu Rumin 2101 Beneficial owner
Pacific Mind Development Limited 2101 Beneficial owner
Ubs Tc (jersey) Ltd 2301 Trustee
Yu Jianguang 2202 Interest of your spouse
Yu Jinlai 2305 Beneficiary of a trust
Yu Ruping 2101 Beneficial owner
Zhu Qinying 2202 Interest of your spouse

Nanfang Communication Holdings Headlines

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