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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. Guan Chao Holdings's
Operating Income
for the
six
months ended in Dec. 2025 was HK$-30 Mil. Guan Chao Holdings's Interest Expense for the
six
months ended in Dec. 2025 was HK$-7 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Guan Chao Holdings's Interest Coverage or its related term are showing as below:
HKSE:01872's Interest Coverage is not ranked *
in the Vehicles & Parts industry.
Industry Median: 8.46 * Ranked among companies with meaningful Interest Coverage only.
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 .
Guan Chao Holdings Interest Coverage Related Terms
Guan Chao Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Guan Chao 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.
HKSE:01872 vs CVNA, PAG, KMX: Interest Coverage Comparison
For the Auto & Truck Dealerships subindustry, Guan Chao 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.
Guan Chao Holdings Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Guan Chao Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Guan Chao Holdings's Interest Coverage falls into.
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:
Guan Chao Holdings did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Guan Chao Holdings (HKSE:01872) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Guan Chao Holdings and its competitors. According to the industry distribution chart, Guan Chao Holdings ranks #999999 out of 1066 companies in the Vehicles & Parts industry.
Is Guan Chao Holdings' Interest Coverage too high?
Guan Chao Holdings' current Interest Coverage is 0 (At Loss). Based on the distribution chart, Guan Chao Holdings ranks #999999 out of 1066 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Guan Chao Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guan Chao Holdings' Interest Coverage compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Guan Chao Holdings ranks #999999 out of 1066 companies for Interest Coverage. This places Guan Chao Holdings in the lower half of its industry. The industry median Interest Coverage is 8.46. 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.46, based on 1,066 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. 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 Guan Chao Holdings and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guan Chao Holdings's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guan Chao Holdings stock overvalued right now?
Based on GuruFocus' analysis, Guan Chao Holdings (HKSE:01872) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.39, compared to a current price of HK$3.90 — trading 900% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Guan Chao Holdings' overall GF Score™ is 52/100 with 6 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 Guan Chao Holdings (HKSE:01872), the current Interest Coverage is 0 (At Loss) 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 Guan Chao Holdings (HKSE:01872) Overvalued in 2026?
Based on GuruFocus' analysis, Guan Chao Holdings stock appears to be overvalued.
The current stock price of HK$3.90 is trading 900% above its estimated GF Value™ of HK$0.39.
GuruFocus considers Guan Chao Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01872:
Interest Coverage: 0 (At Loss)
GF Value™: HK$0.39 vs. price of HK$3.90 (900% above fair value)
No single metric tells the full story. See the HKSE:01872 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guan Chao Holdings Ltd is an investment holding company. The principal activities of the Group are sales of new parallel-import motor vehicles and pre-owned motor vehicles, provision of motor vehicle financing services and motor vehicle insurance agency services, sales of motor vehicle spare parts and accessories, and provision of motor vehicle leasing services. Its segment comprises Sales of motor vehicles and provision of related services; Rental income from operating lease of motor vehicles; Sales of spare parts and accessories; Sales of hair-care products; and manufacture and sales of lithium niobate crystals and lithium niobate thin films. The company generates the majority of its revenue from the sale of motor vehicles.
52GF Score
Get the complete analysis for HKSE:01872
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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