Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) Interest Coverage: 7.15 (As of Dec. 2025) — 86% Above Median

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HKSE:02408 Guangzhou Xiao Noodles Catering Management Co Ltd HKSE:02408
18 GF Score
Price HK$3.57
! 1 Warning Sign
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What is Guangzhou Xiao Noodles Catering Management Co Interest Coverage?

Guangzhou Xiao Noodles Catering Management Co HKSE:02408 -2.46% 18 Interest Coverage is 7.15 as of Dec. 2025, which is 86% above its 10-year median of 3.85. GuruFocus rates HKSE:02408 with a GF Score™ of 18/100. The stock has 1 warning sign investors should review. Among 261 Restaurants companies, Guangzhou Xiao Noodles Catering Management Co ranks worse than 50.57% on this metric.

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. Guangzhou Xiao Noodles Catering Management Co's Operating Income for the six months ended in Dec. 2025 was HK$129 Mil. Guangzhou Xiao Noodles Catering Management Co's Interest Expense for the six months ended in Dec. 2025 was HK$-18 Mil. Guangzhou Xiao Noodles Catering Management Co's interest coverage for the quarter that ended in Dec. 2025 was 7.15. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Guangzhou Xiao Noodles Catering Management Co's Interest Coverage or its related term are showing as below:

HKSE:02408' s Interest Coverage Range Over the Past 10 Years
Min: 3.7   Med: 3.85   Max: 6.46
Current: 6.46


HKSE:02408's Interest Coverage is ranked worse than
50.57% of 261 companies
in the Restaurants industry
Industry Median: 6.61 vs HKSE:02408: 6.46

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


Guangzhou Xiao Noodles Catering Management Co  (HKSE:02408) 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 .


Guangzhou Xiao Noodles Catering Management Co Interest Coverage Related Terms


Guangzhou Xiao Noodles Catering Management Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Guangzhou Xiao Noodles Catering Management 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.

Guangzhou Xiao Noodles Catering Management Co Interest Coverage Chart

Guangzhou Xiao Noodles Catering Management Co Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Interest Coverage
0.00 3.85 3.70 6.46

Guangzhou Xiao Noodles Catering Management Co Semi-Annual Data
Dec22 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial N/A 3.17 4.14 5.69 7.15

HKSE:02408 vs MCD, SBUX, YUM: Interest Coverage Comparison

For the Restaurants subindustry, Guangzhou Xiao Noodles Catering Management 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.


Guangzhou Xiao Noodles Catering Management Co Interest Coverage vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Guangzhou Xiao Noodles Catering Management Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Guangzhou Xiao Noodles Catering Management Co's Interest Coverage falls into.


HKSE:02408
18GF Score
Guangzhou Xiao Noodles Catering Management Co Ltd HKSE:02408
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Guangzhou Xiao Noodles Catering Management 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.

Guangzhou Xiao Noodles Catering Management Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Guangzhou Xiao Noodles Catering Management Co's Interest Expense was HK$-34 Mil. Its Operating Income was HK$220 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$755 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*220.006/-34.062
=6.46

Guangzhou Xiao Noodles Catering Management Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Guangzhou Xiao Noodles Catering Management Co's Interest Expense was HK$-18 Mil. Its Operating Income was HK$129 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$755 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*128.854/-18.03
=7.15

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 7.15 mean?
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) has a Interest Coverage of 7.15 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Guangzhou Xiao Noodles Catering Management Co and its competitors. This is 86% above median its historical median of 3.85. Over the past decade, Guangzhou Xiao Noodles Catering Management Co's Interest Coverage has ranged from 3.70 to 6.46. According to the industry distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #132 out of 261 companies in the Restaurants industry, placing it in the top 50.6%.
Is Guangzhou Xiao Noodles Catering Management Co's Interest Coverage too high?
Guangzhou Xiao Noodles Catering Management Co's current Interest Coverage of 7.15 is 86% above median its 10-year median of 3.85. Over the past 10 years, this metric has ranged from a low of 3.70 to a high of 6.46. The Restaurants industry median Interest Coverage is 6.61. Guangzhou Xiao Noodles Catering Management Co's value of 7.15 is 8.2% above this industry median. Based on the distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #132 out of 261 companies in the Restaurants industry, which is below the industry midpoint. Overall, Guangzhou Xiao Noodles Catering Management Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Guangzhou Xiao Noodles Catering Management Co's Interest Coverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #132 out of 261 companies for Interest Coverage. This places Guangzhou Xiao Noodles Catering Management Co in the lower half of its industry. The industry median Interest Coverage is 6.61. Guangzhou Xiao Noodles Catering Management Co's value of 7.15 is 8.2% above this benchmark. Historically, Guangzhou Xiao Noodles Catering Management Co's own Interest Coverage has ranged from 3.70 to 6.46 over the past decade. While the company's 10-year median is 3.85 vs. the industry median of 6.61, Guangzhou Xiao Noodles Catering Management Co has consistently been above the industry average. 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 Restaurants company?
The median Interest Coverage among Restaurants companies is 6.61, based on 261 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. Guangzhou Xiao Noodles Catering Management Co's current Interest Coverage of 7.15 is 8.2% above the industry median. 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 Guangzhou Xiao Noodles Catering Management Co and its competitors. For the Restaurants industry, the median Interest Coverage is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangzhou Xiao Noodles Catering Management Co's current Interest Coverage is 7.15, which is 86% above median its own 10-year median of 3.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangzhou Xiao Noodles Catering Management Co stock overvalued right now?
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) has a current Interest Coverage of 7.15. The current Interest Coverage is 7.15, which is 86% above median its 10-year median of 3.85 and 8.2% above the Restaurants industry median of 6.61. Guangzhou Xiao Noodles Catering Management Co's overall GF Score™ is 18/100 with 1 warning sign 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 Guangzhou Xiao Noodles Catering Management Co (HKSE:02408), the current Interest Coverage is 7.15 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.

Guangzhou Xiao Noodles Catering Management Co Business Description

Address No. 148 Xingang East Road, 1510-1511, 15th Floor, Guangzhou Banghua Global Trade Center, Haizhu District, Guangdong province, Guangzhou, CHN
Guangzhou Xiao Noodles Catering Management Co Ltd is a Chinese noodle restaurants operator in China and operates the Xiao Noodles brand domestically and overseas. It provides a diverse array of its Sichuan and Chongqing dishes throughout the day, encompassing breakfast, afternoon tea, and late-night snacks. The company operates self-operated restaurants and franchised restaurants in the Chinese Mainland, Hong Kong SAR and in Singapore. The self-operated restaurant operations generate revenue from dine-in service and delivery business; and franchised management generates revenue from royalty and franchising income and provision of service, and sales of food ingredients and restaurant supplies.
18GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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