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EDA Group Holdings (HKSE:02505) Interest Coverage : 2.81 (As of Dec. 2024)


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What is EDA Group 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. EDA Group Holdings's Operating Income for the six months ended in Dec. 2024 was HK$49 Mil. EDA Group Holdings's Interest Expense for the six months ended in Dec. 2024 was HK$-18 Mil. EDA Group Holdings's interest coverage for the quarter that ended in Dec. 2024 was 2.81. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for EDA Group Holdings's Interest Coverage or its related term are showing as below:

HKSE:02505' s Interest Coverage Range Over the Past 10 Years
Min: 4.06   Med: 4.85   Max: 8.76
Current: 4.07


HKSE:02505's Interest Coverage is ranked worse than
62.6% of 837 companies
in the Transportation industry
Industry Median: 6.13 vs HKSE:02505: 4.07

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


EDA Group Holdings Interest Coverage Historical Data

The historical data trend for EDA Group 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.

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EDA Group Holdings Interest Coverage Chart

EDA Group Holdings Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Interest Coverage
N/A 4.85 8.76 4.06

EDA Group Holdings Semi-Annual Data
Dec21 Dec22 Jun23 Dec23 Jun24 Dec24
Interest Coverage Get a 7-Day Free Trial N/A 7.08 10.66 7.62 2.81

Competitive Comparison of EDA Group Holdings's Interest Coverage

For the Integrated Freight & Logistics subindustry, EDA Group 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.


EDA Group Holdings's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, EDA Group Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where EDA Group Holdings's Interest Coverage falls into.


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EDA Group 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.

EDA Group Holdings's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, EDA Group Holdings's Interest Expense was HK$-24 Mil. Its Operating Income was HK$96 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$722 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*96.334/-23.735
=4.06

EDA Group Holdings's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, EDA Group Holdings's Interest Expense was HK$-18 Mil. Its Operating Income was HK$49 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$722 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*49.416/-17.576
=2.81

* 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.


EDA Group Holdings  (HKSE:02505) 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 .


EDA Group Holdings Interest Coverage Related Terms

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EDA Group Holdings Business Description

Traded in Other Exchanges
N/A
Address
Xin’an Street, 21/F, Block A, Xingdong Community, Daoxing Science and Technology Innovation Centre, Bao’an District, Shenzhen, CHN
EDA Group Holdings Ltd is a one-stop end-to-end supply chain solutions provider for e-commerce vendors, empowering the fast-growing B2C export e-commerce industry in the PRC. It offers supply chain solutions that encompass cross-border logistics, overseas warehousing and fulfillment delivery services that are integrated into EDA Cloud, its self-developed cloud platform which houses a comprehensive range of digital supply management tools.
Executives
Sovereign Fiduciaries (hong Kong) Limited 2301 Trustee
Ubs Trustees (b.v.i.) Limited 2301 Trustee
Ls Didi Network Technology Limited 2101 Beneficial owner
Skyline Investment International Limited 2201 Interest of corporation controlled by you
Edaurora Holdings Limited 2305 Beneficiary of a trust
Eda Shine International Limited 2101 Beneficial owner
Liu Yong 2501 Other
Zuo Manlun 2501 Other
Xi Xi Development Limited 2201 Interest of corporation controlled by you
Wong Luen Hei 2307 Founder of a discretionary trust who can infl
Tang Jia Jia 2501 Other
Samanea China Holdings Limited 2501 Other
Qian Yu Cheng 2501 Other
New Fortune Star Limited 2201 Interest of corporation controlled by you
Luo Jianfeng 2501 Other

EDA Group Holdings Headlines

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