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Wuhan Youji Holdings (HKSE:02881) Interest Coverage : 7.07 (As of Dec. 2024)


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What is Wuhan Youji 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. Wuhan Youji Holdings's Operating Income for the six months ended in Dec. 2024 was HK$123 Mil. Wuhan Youji Holdings's Interest Expense for the six months ended in Dec. 2024 was HK$-17 Mil. Wuhan Youji Holdings's interest coverage for the quarter that ended in Dec. 2024 was 7.07. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:02881' s Interest Coverage Range Over the Past 10 Years
Min: 3.89   Med: 8.5   Max: 14.73
Current: 4.52


HKSE:02881's Interest Coverage is ranked worse than
67.59% of 1188 companies
in the Chemicals industry
Industry Median: 9.72 vs HKSE:02881: 4.52

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


Wuhan Youji Holdings Interest Coverage Historical Data

The historical data trend for Wuhan Youji 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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Wuhan Youji Holdings Interest Coverage Chart

Wuhan Youji Holdings Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Interest Coverage
12.47 14.73 3.89 4.53

Wuhan Youji Holdings Semi-Annual Data
Dec21 Dec22 Jun23 Dec23 Jun24 Dec24
Interest Coverage Get a 7-Day Free Trial N/A 3.95 3.80 2.56 7.07

Competitive Comparison of Wuhan Youji Holdings's Interest Coverage

For the Chemicals subindustry, Wuhan Youji 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.


Wuhan Youji Holdings's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Wuhan Youji Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Wuhan Youji Holdings's Interest Coverage falls into.


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Wuhan Youji 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.

Wuhan Youji 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, Wuhan Youji Holdings's Interest Expense was HK$-40 Mil. Its Operating Income was HK$181 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$3 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*180.839/-39.958
=4.53

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

Here, for the six months ended in Dec. 2024, Wuhan Youji Holdings's Interest Expense was HK$-17 Mil. Its Operating Income was HK$123 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$3 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*122.969/-17.393
=7.07

* 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.


Wuhan Youji Holdings  (HKSE:02881) 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 .


Wuhan Youji Holdings Interest Coverage Related Terms

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Wuhan Youji Holdings Business Description

Traded in Other Exchanges
N/A
Address
Chemical Second Road, No. 1, Wuhan Chemical Industrial Park, Qingshan District, Hubei, Wuhan, CHN
Wuhan Youji Holdings Ltd is a toluene derivative products provider in the PRC. It is focusing on the manufacture of toluene oxidation and chlorination products, benzoic acid ammonification products and other fine chemical products through organic synthesis process. Toluene derivative products are primarily used for food preservatives, household chemicals, animal feed acidifier and synthetic intermediates for agrochemical and pharmaceutical uses. It sells its products in over 70 countries.
Executives
Gao Lei 2201 Interest of corporation controlled by you
Vastocean Capital Limited 2101 Beneficial owner
Shen Yingming 2201 Interest of corporation controlled by you
Sym Holdings Limited 2101 Beneficial owner
Custodian Capital Ltd. 2306 Nominee for another person

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