Golden Power Group Holdings (HKSE:03919) Interest Coverage : 3.32 (As of Dec. 2023)

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What is Golden Power 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. Golden Power Group Holdings's Operating Income for the six months ended in Dec. 2023 was HK$5.7 Mil. Golden Power Group Holdings's Interest Expense for the six months ended in Dec. 2023 was HK$-1.7 Mil. Golden Power Group Holdings's interest coverage for the quarter that ended in Dec. 2023 was 3.32. 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. Golden Power Group Holdings Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

HKSE:03919' s Interest Coverage Range Over the Past 10 Years
Min: 0.09 Med: 1.78 Max: 10.52
Current: 0.61

HKSE:03919's Interest Coverage is ranked worse than
97.3% of 2297 companies
in the Industrial Products industry
Industry Median: 13.68 vs HKSE:03919: 0.61

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

Golden Power Group Holdings Interest Coverage Historical Data

The historical data trend for Golden Power 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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Golden Power Group Holdings Interest Coverage Chart

Golden Power Group Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.47

4.95

1.05

0.36

0.61

Golden Power Group Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	0.51	0.01	-	3.32

Competitive Comparison of Golden Power Group Holdings's Interest Coverage

For the Electrical Equipment & Parts subindustry, Golden Power 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.

Golden Power Group Holdings's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Golden Power Group Holdings's Interest Coverage distribution charts can be found below:

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

Golden Power 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.

Golden Power Group Holdings'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, Golden Power Group Holdings's Interest Expense was HK$-7.7 Mil. Its Operating Income was HK$4.7 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$23.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4.72	/	-7.736
	=	0.61

Golden Power Group Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Golden Power Group Holdings's Interest Expense was HK$-1.7 Mil. Its Operating Income was HK$5.7 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$23.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	5.745	/	-1.731
	=	3.32

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

Golden Power Group Holdings (HKSE:03919) 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 .

Golden Power Group Holdings Interest Coverage Related Terms

Thank you for viewing the detailed overview of Golden Power Group Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Golden Power Group Holdings (HKSE:03919) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Golden Power Group Holdings Ltd (HKSE:03919) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

57 Ting Kok Road, Flat C, 20th Floor, Block 1, Tai Ping Industrial Centre, Tai Po, New Territories, Hong Kong, HKG

Website

http://www.goldenpower.com

Golden Power Group Holdings Ltd is an investment holding company, which engages in the manufacture and sale of batteries for electronic devices. It operates through the following segments: Disposable Batteries, Rechargeable Batteries, and Other Battery-Related Products. The Disposable Batteries segment contains cylindrical batteries and micro-button cells. The Rechargeable Batteries and Other Battery-Related Products segment include battery charges, battery power packs, and electric fans. The majority of the firm's revenue is derived from the sale of disposable batteries. Its geographical segments are China, Hong Kong, Asia (except the PRC and Hong Kong), Europe, Eastern Europe, North America, South America, Australia, Africa, and the Middle East.

Executives

Golden Villa Ltd.	2101 Beneficial owner
Triumph Treasure Holdings Limited	2101 Beneficial owner
Chu King Tien	2201 Interest of corporation controlled by you
Mo Yuk Ling	2202 Interest of your spouse
Chu Shuk Ching	2201 Interest of corporation controlled by you

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