Shanxi Installation Group Co (HKSE:02520) Interest Coverage: 1.56 (As of Dec. 2025) — Near Median

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HKSE:02520 Shanxi Installation Group Co Ltd HKSE:02520
30 GF Score
Price HK$2.30
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What is Shanxi Installation Group Co Interest Coverage?

Shanxi Installation Group Co HKSE:02520 30 Interest Coverage is 1.56 as of Dec. 2025, which is 5% below its 10-year median of 1.65. GuruFocus rates HKSE:02520 with a GF Score™ of 30/100. The stock has 12 warning signs investors should review. Among 1,366 Construction companies, Shanxi Installation Group Co ranks worse than 89.24% 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. Shanxi Installation Group Co's Operating Income for the six months ended in Dec. 2025 was HK$334 Mil. Shanxi Installation Group Co's Interest Expense for the six months ended in Dec. 2025 was HK$-214 Mil. Shanxi Installation Group Co's interest coverage for the quarter that ended in Dec. 2025 was 1.56. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Shanxi Installation Group Co Ltd interest coverage is 1.33, which is low.

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

HKSE:02520' s Interest Coverage Range Over the Past 10 Years
Min: 1.26   Med: 1.65   Max: 4.29
Current: 1.33


HKSE:02520's Interest Coverage is ranked worse than
89.24% of 1366 companies
in the Construction industry
Industry Median: 7.97 vs HKSE:02520: 1.33

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


Shanxi Installation Group Co  (HKSE:02520) 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 .


Shanxi Installation Group Co Interest Coverage Related Terms


Shanxi Installation Group Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Shanxi Installation 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.

Shanxi Installation Group Co Interest Coverage Chart

Shanxi Installation Group Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 1.66 1.64 4.29 1.26 1.33

Shanxi Installation Group Co Semi-Annual Data
Dec20 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 1.24 1.28 1.06 1.56

HKSE:02520 vs PWR, FIX, EME: Interest Coverage Comparison

For the Engineering & Construction subindustry, Shanxi Installation 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.


Shanxi Installation Group Co Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Shanxi Installation Group Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shanxi Installation Group Co's Interest Coverage falls into.


HKSE:02520
30GF Score
Shanxi Installation Group Co Ltd HKSE:02520
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shanxi Installation 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.

Shanxi Installation Group 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, Shanxi Installation Group Co's Interest Expense was HK$-404 Mil. Its Operating Income was HK$537 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$4,737 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*537.002/-404.234
=1.33

Shanxi Installation Group Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Shanxi Installation Group Co's Interest Expense was HK$-214 Mil. Its Operating Income was HK$334 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$4,737 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*334.268/-213.652
=1.56

* 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 1.56 mean?
Shanxi Installation Group Co (HKSE:02520) has a Interest Coverage of 1.56 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Shanxi Installation Group Co and its competitors. This is near median its historical median of 1.65. Over the past decade, Shanxi Installation Group Co's Interest Coverage has ranged from 1.26 to 4.29. According to the industry distribution chart, Shanxi Installation Group Co ranks #1219 out of 1366 companies in the Construction industry, placing it in the top 89.2%.
Is Shanxi Installation Group Co's Interest Coverage too high?
Shanxi Installation Group Co's current Interest Coverage of 1.56 is near median its 10-year median of 1.65. Over the past 10 years, this metric has ranged from a low of 1.26 to a high of 4.29. The Construction industry median Interest Coverage is 7.97. Shanxi Installation Group Co's value of 1.56 is 80.4% below this industry median. Based on the distribution chart, Shanxi Installation Group Co ranks #1219 out of 1366 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Shanxi Installation Group Co has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Shanxi Installation Group Co's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Shanxi Installation Group Co ranks #1219 out of 1366 companies for Interest Coverage. This places Shanxi Installation Group Co in the lower half of its industry. The industry median Interest Coverage is 7.97. Shanxi Installation Group Co's value of 1.56 is 80.4% below this benchmark. Historically, Shanxi Installation Group Co's own Interest Coverage has ranged from 1.26 to 4.29 over the past decade. While the company's 10-year median is 1.65 vs. the industry median of 7.97, Shanxi Installation Group Co has consistently been below 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 Construction company?
The median Interest Coverage among Construction companies is 7.97, based on 1,366 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. Shanxi Installation Group Co's current Interest Coverage of 1.56 is 80.4% below 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 Shanxi Installation Group Co and its competitors. For the Construction industry, the median Interest Coverage is 7.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanxi Installation Group Co's current Interest Coverage is 1.56, which is near median its own 10-year median of 1.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanxi Installation Group Co stock overvalued right now?
Shanxi Installation Group Co (HKSE:02520) has a current Interest Coverage of 1.56. The current Interest Coverage is 1.56, which is near median its 10-year median of 1.65 and 80.4% below the Construction industry median of 7.97. Shanxi Installation Group Co's overall GF Score™ is 30/100 with 12 warning signs 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 Shanxi Installation Group Co (HKSE:02520), the current Interest Coverage is 1.56 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.

Shanxi Installation Group Co Business Description

Address No. 8 Xinhua Road, Tanghuai Industrial Park, Shanxi Transformation and Comprehensive, Reform Demonstration Zone, Shanxi, Taiyuan, CHN
Shanxi Installation Group Co Ltd is a construction service provider based in Taiyuan, a city in Shanxi Province, China. It is engaged in specialized industrial construction, specialized auxiliary construction, other construction, and non-construction business. The company generates the majority of its revenue from specialized industrial construction. The company offers range of services, from design and consulting, investment and construction, and building construction, to operation and maintenance. The company has two segments the construction contracting segment and the non-construction segment.
30GF 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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