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HPAI (Helport AI) Interest Coverage : 7.96 (As of Jun. 2024)


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What is Helport AI 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. Helport AI's Operating Income for the six months ended in Jun. 2024 was $1.66 Mil. Helport AI's Interest Expense for the six months ended in Jun. 2024 was $-0.21 Mil. Helport AI's interest coverage for the quarter that ended in Jun. 2024 was 7.96. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Helport AI's Interest Coverage or its related term are showing as below:

HPAI' s Interest Coverage Range Over the Past 10 Years
Min: 40.52   Med: 163.5   Max: 724.13
Current: 40.52

HPAI's Interest Coverage is ranked better than
54.88% of 1618 companies
in the Software industry
Industry Median: 27.82 vs HPAI: 40.52

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

Helport AI Interest Coverage Historical Data

The historical data trend for Helport AI'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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Helport AI Interest Coverage Chart

Helport AI Annual Data
Trend Jun22 Jun23 Jun24
Interest Coverage
163.50 724.13 40.52

Helport AI Semi-Annual Data
Jun22 Dec22 Jun23 Dec23 Jun24
Interest Coverage No Debt 2,780.00 430.43 396.95 7.96

Competitive Comparison of Helport AI's Interest Coverage

For the Software - Infrastructure subindustry, Helport AI'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.

Helport AI's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Helport AI's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Helport AI's Interest Coverage falls into.


Helport AI 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.

Helport AI's Interest Coverage for the fiscal year that ended in Jun. 2024 is calculated as

Here, for the fiscal year that ended in Jun. 2024, Helport AI's Interest Expense was $-0.23 Mil. Its Operating Income was $9.20 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2024 )/Interest Expense (A: Jun. 2024 )
=-1*9.197/-0.227
=40.52

Helport AI's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Helport AI's Interest Expense was $-0.21 Mil. Its Operating Income was $1.66 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*1.655/-0.208
=7.96

* 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.

Helport AI  (NAS:HPAI) 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 .

Helport AI Interest Coverage Related Terms

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Helport AI Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Helport AI Ltd (NAS:HPAI) » Definitions » Interest Coverage
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Address
c/o Guanghai Li, 9 Temasek Boulevard, 07-00, Suntec Tower Two, Singapore, SGP, 038989
Website
Helport AI Ltd is a AI technology company based in Singapore dedicated to serving enterprises' customer contact centers with intelligent products, solutions, and a digital platform. Its software, Helport AI Assist (AI Assist), provides tailored AI-powered guidance and oversight for contact center interactions and customer experience, with functions including Agent Assistant, Quality Assurance (QA) Assistant, Supervisor Assistant, and Knowledge Base Assistant.