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Laopu Gold Co (HKSE:06181) Interest Coverage : 60.59 (As of Dec. 2024)


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What is Laopu Gold 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. Laopu Gold Co's Operating Income for the six months ended in Dec. 2024 was HK$1,262 Mil. Laopu Gold Co's Interest Expense for the six months ended in Dec. 2024 was HK$-21 Mil. Laopu Gold Co's interest coverage for the quarter that ended in Dec. 2024 was 60.59. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:06181' s Interest Coverage Range Over the Past 10 Years
Min: 8.96   Med: 23.32   Max: 65.54
Current: 65.54


HKSE:06181's Interest Coverage is ranked better than
84.78% of 795 companies
in the Retail - Cyclical industry
Industry Median: 7.6 vs HKSE:06181: 65.54

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


Laopu Gold Co Interest Coverage Historical Data

The historical data trend for Laopu Gold 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.

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Laopu Gold Co Interest Coverage Chart

Laopu Gold Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Interest Coverage
14.80 8.96 31.83 65.52

Laopu Gold Co Semi-Annual Data
Dec21 Dec22 Jun23 Dec23 Jun24 Dec24
Interest Coverage Get a 7-Day Free Trial N/A 32.01 31.67 74.58 60.59

Competitive Comparison of Laopu Gold Co's Interest Coverage

For the Luxury Goods subindustry, Laopu Gold 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.


Laopu Gold Co's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Laopu Gold Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Laopu Gold Co's Interest Coverage falls into.


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Laopu Gold 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.

Laopu Gold Co'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, Laopu Gold Co's Interest Expense was HK$-32 Mil. Its Operating Income was HK$2,107 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$175 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*2107.413/-32.166
=65.52

Laopu Gold Co's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Laopu Gold Co's Interest Expense was HK$-21 Mil. Its Operating Income was HK$1,262 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$175 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*1261.999/-20.83
=60.59

* 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.


Laopu Gold Co  (HKSE:06181) 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 .


Laopu Gold Co Interest Coverage Related Terms

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Laopu Gold Co Business Description

Traded in Other Exchanges
N/A
Address
No. 1 Dong Chang’an Avenue, No. 3 West Building, Rooms 3-6, 6th floor, The Towers at Oriental Plaza, Dongcheng District, Beijing, CHN
Laopu Gold Co Ltd is a Chinese heritage gold jewelry brand. It design, manufacture and sell pure gold jewelry which combines ancient wisdom and modern fashions. Companies gold jewelry products comprise pure gold jewelry and gem-set jewelry (with diamonds or other gemstones inlaid in pure gold) The company operated 33 boutiques in reputable commercial centers in 14 cities across China.
Executives
Xu Dongbo
Xu Gaoming
Beijing Hongqiao Jinji Consulting Co., Ltd.
Chen Guodong
Beijing Jinbu Enterprise Management Consulting L.p. (limited Partnership)
Tianjin Jincheng Enterprise Management Consulting L.p. (limited Partnership) 2101 Beneficial owner
Huang River Investment Limited
Tencent Holdings Limited

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