Megain Holding (Cayman) Co (HKSE:06939) Interest Coverage : 141.02 (As of Dec. 2023)

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What is Megain Holding (Cayman) 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. Megain Holding (Cayman) Co's Operating Income for the six months ended in Dec. 2023 was HK$8.9 Mil. Megain Holding (Cayman) Co's Interest Expense for the six months ended in Dec. 2023 was HK$-0.1 Mil. Megain Holding (Cayman) Co's interest coverage for the quarter that ended in Dec. 2023 was 141.02. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Megain Holding (Cayman) Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Megain Holding (Cayman) Co's Interest Coverage or its related term are showing as below:

HKSE:06939' s Interest Coverage Range Over the Past 10 Years
Min: 143.97 Med: 306.81 Max: 575.75
Current: 144.9

HKSE:06939's Interest Coverage is ranked better than
85.53% of 1576 companies
in the Hardware industry
Industry Median: 12.55 vs HKSE:06939: 144.90

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

Megain Holding (Cayman) Co Interest Coverage Historical Data

The historical data trend for Megain Holding (Cayman) 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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Megain Holding (Cayman) Co Interest Coverage Chart

Megain Holding (Cayman) Co Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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345.23

306.81

155.04

193.78

143.97

Megain Holding (Cayman) Co Semi-Annual Data
	Dec17	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial						186.20	132.70	290.45	147.50	141.02

Competitive Comparison of Megain Holding (Cayman) Co's Interest Coverage

For the Computer Hardware subindustry, Megain Holding (Cayman) 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.

Megain Holding (Cayman) Co's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Megain Holding (Cayman) Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Megain Holding (Cayman) Co's Interest Coverage falls into.

Megain Holding (Cayman) 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.

Megain Holding (Cayman) Co'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, Megain Holding (Cayman) Co's Interest Expense was HK$-0.2 Mil. Its Operating Income was HK$22.7 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	22.748	/	-0.158
	=	143.97

Megain Holding (Cayman) Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Megain Holding (Cayman) Co's Interest Expense was HK$-0.1 Mil. Its Operating Income was HK$8.9 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	8.884	/	-0.063
	=	141.02

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

Megain Holding (Cayman) Co (HKSE:06939) 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 .

Megain Holding (Cayman) Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Megain Holding (Cayman) Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Megain Holding (Cayman) Co (HKSE:06939) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Megain Holding (Cayman) Co Ltd (HKSE:06939) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 115 Huawei Road, Block A, Floor 3, Guangdong Province, Zhuhai, CHN, 519000

Website

https://www.megaincayman.com

Megain Holding (Cayman) Co Ltd is an investment holding company engaged in the provision of research, design, development, and sales of compatible cartridge chips based in China. The company's products are the core components of compatible cartridges, which are printer consumables designed and manufactured by third-party cartridge manufacturers and include ink cartridges for use in inkjet printers and toner cartridges for use in laser printers. Its product application includes Desktop laser printers, Desktop inkjet printers, and Commercial printers. The company derives a majority of its revenue from the People's Republic of China.

Executives

Cheng Hsien-wei	2201 Interest of corporation controlled by you
Global Megain Technology Pte. Ltd.	2101 Beneficial owner
Arista Global Ltd.	2103 Interests held jointly with another person
Lee Kuo-chang	2103 Interests held jointly with another person
Good Loyal Corporation	2101 Beneficial owner
Yu Yiding	2201 Interest of corporation controlled by you
Lam Tsz Leung	2101 Beneficial owner

Megain Holding (Cayman) Co (HKSE:06939) Headlines

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