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Reconova Technologies CoHKSE:07656 +9.56%9 Interest Coverage is 1.86 as of Dec. 2025, which is 78% below its 10-year median of 8.61. GuruFocus rates HKSE:07656 with a GF Score™ of 9/100. The stock has 2 warning signs investors should review. Among 1,719 Software companies, Reconova Technologies Co ranks worse than 90.81% on this metric.
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. Reconova Technologies Co's
Operating Income
for the
six
months ended in Dec. 2025 was HK$10.3 Mil. Reconova Technologies Co's Interest Expense for the
six
months ended in Dec. 2025 was HK$-5.5 Mil.
Reconova Technologies Co's interest coverage for the quarter that ended in Dec. 2025 was 1.86.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Reconova Technologies Co's Interest Coverage or its related term are showing as below:
HKSE:07656'
s Interest Coverage Range Over the Past 10 Years
Min: 1.86 Med: 8.61 Max: 15.35
Current: 1.86
HKSE:07656's Interest Coverage is ranked worse than 90.81% of 1719
companies
in the Software industry
Industry Median: 24.67
vs HKSE:07656: 1.86
Reconova Technologies Co (HKSE:07656) 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 .
Reconova Technologies Co Interest Coverage Related Terms
Reconova Technologies Co Interest Coverage Historical Data
* 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.
Reconova Technologies Co Interest Coverage Chart
Reconova Technologies Co Annual Data
Trend
Dec23
Dec24
Dec25
Interest Coverage
0.00
15.35
1.86
Reconova Technologies Co Semi-Annual Data
Dec23
Dec24
Dec25
Interest Coverage
0.00
15.35
1.86
HKSE:07656 vs IBM, ACN, FISV: Interest Coverage Comparison
For the Information Technology Services subindustry, Reconova Technologies 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.
Reconova Technologies Co Interest Coverage vs Software Industry
For the Software industry and Technology sector, Reconova Technologies Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Reconova Technologies Co's Interest Coverage falls into.
Reconova Technologies 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:
* 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.
Reconova Technologies Co (HKSE:07656) has a Interest Coverage of 1.86 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Reconova Technologies Co and its competitors. This is 78% below median its historical median of 8.61. Over the past decade, Reconova Technologies Co's Interest Coverage has ranged from 1.86 to 15.35. According to the industry distribution chart, Reconova Technologies Co ranks #1561 out of 1719 companies in the Software industry, placing it in the top 90.8%.
Is Reconova Technologies Co's Interest Coverage too high?
Reconova Technologies Co's current Interest Coverage of 1.86 is 78% below median its 10-year median of 8.61. Over the past 10 years, this metric has ranged from a low of 1.86 to a high of 15.35. The Software industry median Interest Coverage is 24.67. Reconova Technologies Co's value of 1.86 is 92.5% below this industry median. Based on the distribution chart, Reconova Technologies Co ranks #1561 out of 1719 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Reconova Technologies Co has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Reconova Technologies Co's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Reconova Technologies Co ranks #1561 out of 1719 companies for Interest Coverage. This places Reconova Technologies Co in the lower half of its industry. The industry median Interest Coverage is 24.67. Reconova Technologies Co's value of 1.86 is 92.5% below this benchmark. Historically, Reconova Technologies Co's own Interest Coverage has ranged from 1.86 to 15.35 over the past decade. While the company's 10-year median is 8.61 vs. the industry median of 24.67, Reconova Technologies Co has consistently been below the industry average. 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 Software company?
The median Interest Coverage among Software companies is 24.67, based on 1,719 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. Reconova Technologies Co's current Interest Coverage of 1.86 is 92.5% below the industry median. 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 Reconova Technologies Co and its competitors. For the Software industry, the median Interest Coverage is 24.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reconova Technologies Co's current Interest Coverage is 1.86, which is 78% below median its own 10-year median of 8.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reconova Technologies Co stock overvalued right now?
Reconova Technologies Co (HKSE:07656) has a current Interest Coverage of 1.86. The current Interest Coverage is 1.86, which is 78% below median its 10-year median of 8.61 and 92.5% below the Software industry median of 24.67. Reconova Technologies Co's overall GF Score™ is 9/100 with 2 warning signs to review. 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 Reconova Technologies Co (HKSE:07656), the current Interest Coverage is 1.86 as of Dec. 2025. 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.
Reconova Technologies Co Ltd is an AI company that provides visual AI technologies and products for enterprise clients. It is engaged in the research and development, design and sale of Visual Intelligents, commercial robots and intelligent passage devices. The company's product offerings include visual perception, visual cognition, and visual reasoning solutions applied across sectors including civil aviation, commercial spaces, and driving safety. The majority of the company's revenue is derived from the sale of Intelligent Civil Aviation, which covers the entire passenger journey including check-in, security screening, boarding, and customer service. Geographically, the maximum revenue is generated from the Chinese Mainland.
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