Howkingtech International Holding (HKSE:02440) Interest Coverage : 96.98 (As of Jun. 2023)

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What is Howkingtech International Holding 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. Howkingtech International Holding's Operating Income for the six months ended in Jun. 2023 was HK$13.3 Mil. Howkingtech International Holding's Interest Expense for the six months ended in Jun. 2023 was HK$-0.1 Mil. Howkingtech International Holding's interest coverage for the quarter that ended in Jun. 2023 was 96.98. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Howkingtech International Holding Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Howkingtech International Holding's Interest Coverage or its related term are showing as below:

HKSE:02440' s Interest Coverage Range Over the Past 10 Years
Min: 12.52 Med: 104.27 Max: 204.45
Current: 202.23

HKSE:02440's Interest Coverage is ranked better than
94.85% of 291 companies
in the Telecommunication Services industry
Industry Median: 4.49 vs HKSE:02440: 202.23

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

Howkingtech International Holding Interest Coverage Historical Data

The historical data trend for Howkingtech International Holding'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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Howkingtech International Holding Interest Coverage Chart

Howkingtech International Holding Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

12.52

104.00

104.53

204.45

202.23

Howkingtech International Holding Semi-Annual Data
	Dec19	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial			N/A	36.77	-	96.98	340.88

Competitive Comparison of Howkingtech International Holding's Interest Coverage

For the Telecom Services subindustry, Howkingtech International Holding'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.

Howkingtech International Holding's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Howkingtech International Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Howkingtech International Holding's Interest Coverage falls into.

Howkingtech International Holding 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.

Howkingtech International Holding's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Howkingtech International Holding's Interest Expense was HK$-0.2 Mil. Its Operating Income was HK$50.1 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	50.09	/	-0.245
	=	204.45

Howkingtech International Holding's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the six months ended in Jun. 2023, Howkingtech International Holding's Interest Expense was HK$-0.1 Mil. Its Operating Income was HK$13.3 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	13.286	/	-0.137
	=	96.98

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

Howkingtech International Holding (HKSE:02440) 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 .

Howkingtech International Holding Interest Coverage Related Terms

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

Howkingtech International Holding (HKSE:02440) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Howkingtech International Holding Ltd (HKSE:02440) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 9, East Mozhou Road, Jiangning Economic and Technological Development Zone, Building B4, Nanjing, CHN

Website

http://www.howkingtech.com

Howkingtech International Holding Ltd is a provider for data transmission and processing services for IoT applications and telecommunication equipment in China, serving a broad range of industrial customers. It mainly provides customized data transmission and processing services to customers in manufacturing, municipal services and other industries in China, and research, develop and sell telecommunication equipment.

Executives

Wang Zheshi	2101 Beneficial owner
Chen Ping	2202 Interest of your spouse
Howkingtech Holding Limited	2101 Beneficial owner
Jin Yan	2201 Interest of corporation controlled by you
Ban Lifeng	2201 Interest of corporation controlled by you
Xie Xiongqing	2201 Interest of corporation controlled by you
Ye Xiang	2201 Interest of corporation controlled by you
Ding Di	2201 Interest of corporation controlled by you
Wu Chak Man	2101 Beneficial owner
Ning Bo Hui Xin Zhi Yuan Tou Zi Guan Li He Huo Qi Ye You Xian He Huo	2201 Interest of corporation controlled by you
Ning Bo Xin Hui Qian Hai Gu Quan Tou Zi You Xian Gong Si	2201 Interest of corporation controlled by you
Shang Hai Jin Yuan Zhang Fu Qi Ye Guan Li He Huo Qi Ye You Xian He Huo	2101 Beneficial owner
Shen Zhen Hui Xin Qian Hai Gu Quan Tou Zi Qi Ye You Xian He Huo	2201 Interest of corporation controlled by you

Howkingtech International Holding (HKSE:02440) Headlines

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