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Guoquan Food (Shanghai) Co (HKSE:02517) Interest Coverage : 59.13 (As of Dec. 2023)


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What is Guoquan Food (Shanghai) 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. Guoquan Food (Shanghai) Co's Operating Income for the six months ended in Dec. 2023 was HK$351 Mil. Guoquan Food (Shanghai) Co's Interest Expense for the six months ended in Dec. 2023 was HK$-6 Mil. Guoquan Food (Shanghai) Co's interest coverage for the quarter that ended in Dec. 2023 was 59.13. 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. Guoquan Food (Shanghai) Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Guoquan Food (Shanghai) Co's Interest Coverage or its related term are showing as below:

HKSE:02517' s Interest Coverage Range Over the Past 10 Years
Min: 59.13   Med: 78.17   Max: 97.21
Current: 59.13

HKSE:02517's Interest Coverage is ranked better than
80.35% of 1369 companies
in the Consumer Packaged Goods industry
Industry Median: 8.41 vs HKSE:02517: 59.13

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

Guoquan Food (Shanghai) Co Interest Coverage Historical Data

The historical data trend for Guoquan Food (Shanghai) 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.

* Premium members only.

Guoquan Food (Shanghai) Co Interest Coverage Chart

Guoquan Food (Shanghai) Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Interest Coverage
- - 97.21 59.13

Guoquan Food (Shanghai) Co Semi-Annual Data
Dec20 Dec21 Dec22 Dec23
Interest Coverage - - 97.21 59.13

Competitive Comparison of Guoquan Food (Shanghai) Co's Interest Coverage

For the Packaged Foods subindustry, Guoquan Food (Shanghai) 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.

Guoquan Food (Shanghai) Co's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Guoquan Food (Shanghai) Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Guoquan Food (Shanghai) Co's Interest Coverage falls into.


Guoquan Food (Shanghai) 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.

Guoquan Food (Shanghai) 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, Guoquan Food (Shanghai) Co's Interest Expense was HK$-6 Mil. Its Operating Income was HK$351 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$22 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*351.318/-5.941
=59.13

Guoquan Food (Shanghai) Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Guoquan Food (Shanghai) Co's Interest Expense was HK$-6 Mil. Its Operating Income was HK$351 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$22 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*351.318/-5.941
=59.13

* 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.

Guoquan Food (Shanghai) Co  (HKSE:02517) 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 .

Guoquan Food (Shanghai) Co Interest Coverage Related Terms

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

Guoquan Food (Shanghai) Co (HKSE:02517) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Guoquan Food (Shanghai) Co Ltd (HKSE:02517) » Definitions » Interest Coverage
Comparable Companies
Traded in Other Exchanges
N/A
Address
Lane 187, Xinghong Road, Room 802, No. 3, Minhang, Shanghai, CHN
Website
http://www.zzgqsh.com
Guoquan Food (Shanghai) Co Ltd is the leading and rapidly growing home meal products brand in China. It offers a variety of ready-to-eat, ready-to-heat, ready-to-cook and prepared ingredients, with a focus on at-home hotpot and barbecue products. With a carefully curated product portfolio and an extensive network of community-based stores, it enables consumers to enjoy meals at home with convenience, affordability and tastiness. Leveraging its robust supply chain and production capabilities, The company offers a wide variety of home meal products under the Guoquan Shihui brand through a nationwide network of 9,844 retail stores in China, serving diverse dining scenarios.

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