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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. Simplicity Holding's
Operating Income
for the
six
months ended in Sep. 2025 was HK$-3.78 Mil. Simplicity Holding's Interest Expense for the
six
months ended in Sep. 2025 was HK$-0.46 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 Simplicity Holding's Interest Coverage or its related term are showing as below:
HKSE:08367'
s Interest Coverage Range Over the Past 10 Years
Min: 0.7 Med: 13.93 Max: 78.41
Current: 43.45
HKSE:08367's Interest Coverage is ranked better than 86.97% of 261
companies
in the Restaurants industry
Industry Median: 6.61
vs HKSE:08367: 43.45
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 .
Simplicity Holding Interest Coverage Related Terms
Simplicity Holding Interest Coverage Historical Data
* Premium members only.
The historical data trend for Simplicity Holding'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:08367 vs MCD, SBUX, YUM: Interest Coverage Comparison
For the Restaurants subindustry, Simplicity Holding'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.
Simplicity Holding Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Simplicity Holding's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Simplicity Holding'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:
Simplicity Holding 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?
Simplicity Holding (HKSE:08367) has a Interest Coverage of 0 (At Loss) as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Simplicity Holding and its competitors. Over the past decade, Simplicity Holding's Interest Coverage has ranged from 0.70 to 78.41. According to the industry distribution chart, Simplicity Holding ranks #34 out of 261 companies in the Restaurants industry, placing it in the top 13%.
Is Simplicity Holding's Interest Coverage too high?
Simplicity Holding's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 78.41. Based on the distribution chart, Simplicity Holding ranks #34 out of 261 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Simplicity Holding has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Simplicity Holding's Interest Coverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Simplicity Holding ranks #34 out of 261 companies for Interest Coverage. This places Simplicity Holding in the top 13% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 6.61. Historically, Simplicity Holding's own Interest Coverage has ranged from 0.70 to 78.41 over the past decade. 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 Restaurants company?
The median Interest Coverage among Restaurants companies is 6.61, based on 261 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 Simplicity Holding and its competitors. For the Restaurants industry, the median Interest Coverage is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simplicity Holding'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 Simplicity Holding stock overvalued right now?
Based on GuruFocus' analysis, Simplicity Holding (HKSE:08367) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.03, compared to a current price of HK$0.25 — trading 75.7% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Simplicity Holding's overall GF Score™ is 65/100 with 4 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 Simplicity Holding (HKSE:08367), the current Interest Coverage is 0 (At Loss) as of Sep. 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.
Is Simplicity Holding (HKSE:08367) Overvalued in 2026?
Based on GuruFocus' analysis, Simplicity Holding stock appears to be undervalued.
The current stock price of HK$0.25 is trading 75.7% below its estimated GF Value™ of HK$1.03.
GuruFocus considers Simplicity Holding to be Possible Value Trap.
Key valuation signals for HKSE:08367:
Interest Coverage: 0 (At Loss)
GF Value™: HK$1.03 vs. price of HK$0.25 (75.7% below fair value)
No single metric tells the full story. See the HKSE:08367 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simplicity Holding Ltd is a casual dining full-service restaurant operator. The company also provide services of aircraft engine stand repair, and maintenance, and other related services. The company offers Chinese, Western, and Thai Cuisine. Its reportable segments are Chinese cuisine; Thai cuisine; Malaysian cuisine; and Food ingredients and beverages operations, and Aircraft engine stand repairing and maintenance services. The company generates its revenue from Hong Kong.
65GF Score
Get the complete analysis for HKSE:08367
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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