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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. Differ Group Auto's
Operating Income
for the
six
months ended in Jun. 2024 was HK$-23 Mil. Differ Group Auto's Interest Expense for the
six
months ended in Jun. 2024 was HK$-9 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Differ Group Auto's Interest Coverage or its related term are showing as below:
HKSE:06878's Interest Coverage is not ranked *
in the Credit Services industry.
Industry Median: 52.24 * Ranked among companies with meaningful Interest Coverage only.
Differ Group Auto (HKSE:06878) 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 .
Differ Group Auto Interest Coverage Related Terms
Differ Group Auto Interest Coverage Historical Data
* Premium members only.
The historical data trend for Differ Group Auto'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.
HKSE:06878 vs V, MA, AXP: Interest Coverage Comparison
For the Credit Services subindustry, Differ Group Auto'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.
Differ Group Auto Interest Coverage vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Differ Group Auto's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Differ Group Auto's Interest Coverage falls into.
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:
Differ Group Auto did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
Differ Group Auto (HKSE:06878) has a Interest Coverage of 0 (At Loss) as of Jun. 2024. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Differ Group Auto and its competitors.
Is Differ Group Auto's Interest Coverage too high?
Differ Group Auto's current Interest Coverage is 0 (At Loss). Overall, Differ Group Auto has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Differ Group Auto's Interest Coverage compare to V and MA?
Differ Group Auto's Interest Coverage of 0 (At Loss) can be compared against companies in the Credit Services industry. The industry median Interest Coverage is 52.24. 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 Credit Services company?
The median Interest Coverage among Credit Services companies is 52.24, based on 161 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. 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 Differ Group Auto and its competitors. For the Credit Services industry, the median Interest Coverage is 52.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Differ Group Auto's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Differ Group Auto stock overvalued right now?
Differ Group Auto (HKSE:06878) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). Differ Group Auto's overall GF Score™ is 4/100. 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 Differ Group Auto (HKSE:06878), the current Interest Coverage is 0 (At Loss) as of Jun. 2024. 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.
Differ Group Auto Ltd, formerly Differ Group Holding Company Limited, is a China-based investment holding company. The Company conducts its businesses primarily through four segments. The Financial Services segment is principally engaged in the provision of guarantee services, express loan services, advisory services, financial leasing services, financial securities services and asset management. The Property Development and Investment segment is principally engaged in the operation of property development projects and property investment activities. The Commodity Trading segment is mainly engaged in the trading of commodities. The Automotive E-commerce segment is principally engaged in the operation of online automotive e-commerce platforms.
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