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Kato (Hong Kong) Holdings (HKSE:02189) Interest Coverage : 4.47 (As of Sep. 2024)


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What is Kato (Hong Kong) 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. Kato (Hong Kong) Holdings's Operating Income for the six months ended in Sep. 2024 was HK$37.8 Mil. Kato (Hong Kong) Holdings's Interest Expense for the six months ended in Sep. 2024 was HK$-8.5 Mil. Kato (Hong Kong) Holdings's interest coverage for the quarter that ended in Sep. 2024 was 4.47. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Kato (Hong Kong) Holdings's Interest Coverage or its related term are showing as below:

HKSE:02189' s Interest Coverage Range Over the Past 10 Years
Min: 4.28   Med: 17.08   Max: 768.78
Current: 4.28


HKSE:02189's Interest Coverage is ranked worse than
64.72% of 428 companies
in the Healthcare Providers & Services industry
Industry Median: 8.09 vs HKSE:02189: 4.28

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


Kato (Hong Kong) Holdings Interest Coverage Historical Data

The historical data trend for Kato (Hong Kong) 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.

* Premium members only.

Kato (Hong Kong) Holdings Interest Coverage Chart

Kato (Hong Kong) Holdings Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 14.70 16.71 14.90 17.08 4.74

Kato (Hong Kong) Holdings Semi-Annual Data
Mar16 Mar17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 17.57 16.69 5.61 4.04 4.47

Competitive Comparison of Kato (Hong Kong) Holdings's Interest Coverage

For the Medical Care Facilities subindustry, Kato (Hong Kong) 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.


Kato (Hong Kong) Holdings's Interest Coverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Kato (Hong Kong) Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kato (Hong Kong) Holdings's Interest Coverage falls into.


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Kato (Hong Kong) 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.

Kato (Hong Kong) Holdings's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, Kato (Hong Kong) Holdings's Interest Expense was HK$-12.1 Mil. Its Operating Income was HK$57.2 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$329.2 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2024 )/Interest Expense (A: Mar. 2024 )
=-1*57.24/-12.074
=4.74

Kato (Hong Kong) Holdings's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the six months ended in Sep. 2024, Kato (Hong Kong) Holdings's Interest Expense was HK$-8.5 Mil. Its Operating Income was HK$37.8 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$301.0 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*37.824/-8.46
=4.47

* 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.


Kato (Hong Kong) Holdings  (HKSE:02189) 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 .


Kato (Hong Kong) Holdings Interest Coverage Related Terms

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


Kato (Hong Kong) Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 3 Tsing Ling Path, 1st Floor, Tung Wai Court, Tuen Mun, New Territories, Hong Kong, HKG
Kato (Hong Kong) Holdings Ltd is an established operator of residential care homes and daycare services for the elderly in Hong Kong. The company offers a wide range of residential care services for the elderly including; the provision of accommodation, professional nursing and care-taking services, nutritional management, medical services, physiotherapy and occupational therapy services, individual care plans and recreational services; and the sale of healthcare and medical goods and the provision of add-on healthcare services to residents.
Executives
Wei Xiaoling 2202 Interest of your spouse
Sheung Fung Limited 2101 Beneficial owner
Shi Fung (ptc) Limited 2301 Trustee
Ngai Shi Shing Godfrey 2101 Beneficial owner
Ngai Ka Yee 2101 Beneficial owner
Wei Xiaoling 2202 Interest of your spouse
Lam Kong 2101 Beneficial owner
Kwong Kai To 2202 Interest of your spouse

Kato (Hong Kong) Holdings Headlines

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