Expert Systems Holdings (HKSE:08319) Interest Coverage : 4.28 (As of Sep. 2023)

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What is Expert Systems 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. Expert Systems Holdings's Operating Income for the three months ended in Sep. 2023 was HK$7.0 Mil. Expert Systems Holdings's Interest Expense for the three months ended in Sep. 2023 was HK$-1.6 Mil. Expert Systems Holdings's interest coverage for the quarter that ended in Sep. 2023 was 4.28. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:08319' s Interest Coverage Range Over the Past 10 Years
Min: 4.11 Med: No Debt Max: No Debt
Current: 4.11

HKSE:08319's Interest Coverage is ranked worse than
81.47% of 1614 companies
in the Software industry
Industry Median: 29.37 vs HKSE:08319: 4.11

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

Expert Systems Holdings Interest Coverage Historical Data

The historical data trend for Expert Systems 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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Expert Systems Holdings Interest Coverage Chart

Expert Systems Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

No Debt

29.34

70.41

7.59

5.03

Expert Systems Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial															6.38	5.98	2.77	3.40	4.28

Competitive Comparison of Expert Systems Holdings's Interest Coverage

For the Information Technology Services subindustry, Expert Systems 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.

Expert Systems Holdings's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Expert Systems Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Expert Systems Holdings's Interest Coverage falls into.

Expert Systems 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.

Expert Systems Holdings's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Expert Systems Holdings's Interest Expense was HK$-6.3 Mil. Its Operating Income was HK$31.5 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$68.5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	31.457	/	-6.259
	=	5.03

Expert Systems Holdings's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Expert Systems Holdings's Interest Expense was HK$-1.6 Mil. Its Operating Income was HK$7.0 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$68.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	6.954	/	-1.625
	=	4.28

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

Expert Systems Holdings (HKSE:08319) 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 .

Expert Systems Holdings Interest Coverage Related Terms

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

Expert Systems Holdings (HKSE:08319) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Expert Systems Holdings Ltd (HKSE:08319) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

64 Hoi Yuen Road, 22nd Floor, Yen Sheng Centre, Kwun Tong, Kowloon, Hong Kong, HKG

Website

http://www.expertsystems.com.hk

Expert Systems Holdings Ltd is an investment holding company. Along with its subsidiaries, the company is principally engaged in the provision of IT infrastructure solutions .The operating segments of the Company are the provision of IT infrastructure solutions, the provision of IT infrastructure management services and the provision of AI business. Its products and solutions comprise server and storage consolidation, backup and restore, desktop management, networking, infrastructure and management, and information security. The company serves a diverse range of markets including banking, finance, insurance, telecommunications, media, Hotel and government sector. The company's operations are carried out in Hong Kong and Macau. Hong Kong contributes to the vast majority of total revenue.

Executives

Chu Siu Sum Alex	2201 Interest of corporation controlled by you
China Expert Systems Limited	2201 Interest of corporation controlled by you
Serviceone Global Holdings Limited	2101 Beneficial owner
Luk Yuen Wah Nancy	2202 Interest of your spouse
Lee Kit Ling Monita	2202 Interest of your spouse
Wong Chu Kee Daniel	2101 Beneficial owner
Keung Lai Wa Dorathy Linndia	2202 Interest of your spouse
Lau Wai Kwok	2101 Beneficial owner

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