SINOPEC Engineering (Group) Co (HKSE:02386) Interest Coverage : 24.24 (As of Dec. 2023)

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What is SINOPEC Engineering (Group) Co 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. SINOPEC Engineering (Group) Co's Operating Income for the six months ended in Dec. 2023 was HK$1,062 Mil. SINOPEC Engineering (Group) Co's Interest Expense for the six months ended in Dec. 2023 was HK$-44 Mil. SINOPEC Engineering (Group) Co's interest coverage for the quarter that ended in Dec. 2023 was 24.24. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for SINOPEC Engineering (Group) Co's Interest Coverage or its related term are showing as below:

HKSE:02386' s Interest Coverage Range Over the Past 10 Years
Min: 11.17 Med: 20.02 Max: 38.19
Current: 24.09

HKSE:02386's Interest Coverage is ranked better than
70.68% of 1262 companies
in the Construction industry
Industry Median: 7.055 vs HKSE:02386: 24.09

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

SINOPEC Engineering (Group) Co Interest Coverage Historical Data

The historical data trend for SINOPEC Engineering (Group) Co'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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SINOPEC Engineering (Group) Co Interest Coverage Chart

SINOPEC Engineering (Group) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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16.26

22.87

19.05

20.99

24.09

SINOPEC Engineering (Group) Co 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															10.75	29.36	13.11	23.90	24.24

Competitive Comparison of SINOPEC Engineering (Group) Co's Interest Coverage

For the Engineering & Construction subindustry, SINOPEC Engineering (Group) Co'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.

SINOPEC Engineering (Group) Co's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, SINOPEC Engineering (Group) Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where SINOPEC Engineering (Group) Co's Interest Coverage falls into.

SINOPEC Engineering (Group) Co 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.

SINOPEC Engineering (Group) Co'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, SINOPEC Engineering (Group) Co's Interest Expense was HK$-79 Mil. Its Operating Income was HK$1,898 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$149 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1898.317	/	-78.8
	=	24.09

SINOPEC Engineering (Group) Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, SINOPEC Engineering (Group) Co's Interest Expense was HK$-44 Mil. Its Operating Income was HK$1,062 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$149 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1062.263	/	-43.823
	=	24.24

The higher the ratio, the stronger the company's Financial Strength is.

SINOPEC Engineering (Group) Co (HKSE:02386) 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 .

SINOPEC Engineering (Group) Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of SINOPEC Engineering (Group) Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

SINOPEC Engineering (Group) Co (HKSE:02386) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » SINOPEC Engineering (Group) Co Ltd (HKSE:02386) » Definitions » Interest Coverage

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SENGF:USA

Address

Shenggu Middle Road, No. 8 Building, Shenggu Home, Chaoyang District, Beijing, CHN, 100029

Website

http://www.segroup.cn

SINOPEC Engineering (Group) Co Ltd is a wholly owned subsidiary of the Sinopec Group, a Chinese company. The group provides integrated engineering services and technical patents for domestic and international refining and chemical engineering businesses. The group mainly contains four segments: engineering, consulting and licensing; engineering, procurement and construction (EPC) contracting; construction; and equipment manufacturing. The company generates most of its revenue from the EPC contracting segment. Geographically, the business presence of the group is primarily seen in China, Malaysia, Kuwait, and Saudi Arabia.

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