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ECI Technology Holdings (HKSE:08013) Interest Coverage : 29.46 (As of Feb. 2025)


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What is ECI Technology 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. ECI Technology Holdings's Operating Income for the six months ended in Feb. 2025 was HK$4.3 Mil. ECI Technology Holdings's Interest Expense for the six months ended in Feb. 2025 was HK$-0.1 Mil. ECI Technology Holdings's interest coverage for the quarter that ended in Feb. 2025 was 29.46. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:08013' s Interest Coverage Range Over the Past 10 Years
Min: 4.57   Med: 29.79   Max: 34.11
Current: 20.05


HKSE:08013's Interest Coverage is ranked better than
56.51% of 791 companies
in the Business Services industry
Industry Median: 13.32 vs HKSE:08013: 20.05

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


ECI Technology Holdings Interest Coverage Historical Data

The historical data trend for ECI Technology 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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ECI Technology Holdings Interest Coverage Chart

ECI Technology Holdings Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.87 33.71 34.11 31.32 29.79

ECI Technology Holdings Semi-Annual Data
Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.37 25.08 54.18 12.16 29.46

Competitive Comparison of ECI Technology Holdings's Interest Coverage

For the Specialty Business Services subindustry, ECI Technology 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.


ECI Technology Holdings's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, ECI Technology Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ECI Technology Holdings's Interest Coverage falls into.


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ECI Technology 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.

ECI Technology Holdings's Interest Coverage for the fiscal year that ended in Aug. 2024 is calculated as

Here, for the fiscal year that ended in Aug. 2024, ECI Technology Holdings's Interest Expense was HK$-0.3 Mil. Its Operating Income was HK$8.9 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$2.4 Mil.

Interest Coverage=-1* Operating Income (A: Aug. 2024 )/Interest Expense (A: Aug. 2024 )
=-1*8.877/-0.298
=29.79

ECI Technology Holdings's Interest Coverage for the quarter that ended in Feb. 2025 is calculated as

Here, for the six months ended in Feb. 2025, ECI Technology Holdings's Interest Expense was HK$-0.1 Mil. Its Operating Income was HK$4.3 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1.8 Mil.

Interest Coverage=-1* Operating Income (Q: Feb. 2025 )/Interest Expense (Q: Feb. 2025 )
=-1*4.271/-0.145
=29.46

* 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.


ECI Technology Holdings  (HKSE:08013) 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 .


ECI Technology Holdings Interest Coverage Related Terms

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


ECI Technology Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 62 Hoi Yuen Road, Factory D, 3rd Floor, Block II, Camelpaint Buildings, Block I and Block II, Kowloon, Hong Kong, HKG
ECI Technology Holdings Ltd is engaged in the provision of extra-low voltage (ELV) solutions in Hong Kong. The services of the company include the installation and maintenance of various systems, including central control monitoring systems; and telecommunications and broadcasting services systems. Business operating segments include; Installation and maintenance services, security guarding services, and Electric vehicle charging operations. Key revenue is earned from installation and maintenance services activity.
Executives
Yang Shuo 2101 Beneficial owner
Eci Asia Investment Limited 2101 Beneficial owner
Ng Tai Wing 2201 Interest of corporation controlled by you
Wong Tsz Man 2202 Interest of your spouse

ECI Technology Holdings Headlines

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