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Wuxi Huaguang Environment & Energy Group Co (SHSE:600475) Interest Coverage : 1.89 (As of Sep. 2024)


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What is Wuxi Huaguang Environment & Energy Group Co 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. Wuxi Huaguang Environment & Energy Group Co's Operating Income for the three months ended in Sep. 2024 was ¥94 Mil. Wuxi Huaguang Environment & Energy Group Co's Interest Expense for the three months ended in Sep. 2024 was ¥-50 Mil. Wuxi Huaguang Environment & Energy Group Co's interest coverage for the quarter that ended in Sep. 2024 was 1.89. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Wuxi Huaguang Environment & Energy Group Co Ltd interest coverage is 2.59, which is low.

The historical rank and industry rank for Wuxi Huaguang Environment & Energy Group Co's Interest Coverage or its related term are showing as below:

SHSE:600475' s Interest Coverage Range Over the Past 10 Years
Min: 2.59   Med: 20   Max: 940.68
Current: 2.59


SHSE:600475's Interest Coverage is ranked worse than
85.39% of 2259 companies
in the Industrial Products industry
Industry Median: 14.52 vs SHSE:600475: 2.59

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


Wuxi Huaguang Environment & Energy Group Co Interest Coverage Historical Data

The historical data trend for Wuxi Huaguang Environment & Energy Group Co'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.

* Premium members only.

Wuxi Huaguang Environment & Energy Group Co Interest Coverage Chart

Wuxi Huaguang Environment & Energy Group Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.61 12.69 4.84 5.63 3.57

Wuxi Huaguang Environment & Energy Group Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 3.01 2.75 2.98 2.37 1.89

Competitive Comparison of Wuxi Huaguang Environment & Energy Group Co's Interest Coverage

For the Specialty Industrial Machinery subindustry, Wuxi Huaguang Environment & Energy Group 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.


Wuxi Huaguang Environment & Energy Group Co's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Wuxi Huaguang Environment & Energy Group Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Wuxi Huaguang Environment & Energy Group Co's Interest Coverage falls into.



Wuxi Huaguang Environment & Energy Group 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:

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.

Wuxi Huaguang Environment & Energy Group Co's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Wuxi Huaguang Environment & Energy Group Co's Interest Expense was ¥-264 Mil. Its Operating Income was ¥943 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥4,662 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*943.496/-264.218
=3.57

Wuxi Huaguang Environment & Energy Group Co's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Wuxi Huaguang Environment & Energy Group Co's Interest Expense was ¥-50 Mil. Its Operating Income was ¥94 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥5,258 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*94.137/-49.829
=1.89

* 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.


Wuxi Huaguang Environment & Energy Group Co  (SHSE:600475) 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 .


Wuxi Huaguang Environment & Energy Group Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Wuxi Huaguang Environment & Energy Group Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Wuxi Huaguang Environment & Energy Group Co Business Description

Traded in Other Exchanges
N/A
Address
No.3 Chengnan Road, Wuxi, Jiangsu, CHN, 214028
Wuxi Huaguang Environment & Energy Group Co Ltd is engaged in design and development of boilers, industrial boilers, auxiliary boilers, water treatment equipment, pressure vessels, technical consulting, and technical services.
Executives
Mou Qiang Director
Xu Hui senior management
Zhou Jian Wei senior management
Zhong Wen Jun senior management
Li Xiong Wei senior management
Mao Jun Hua Director
Jiang Zhi Jian Director
Xu Li Xin Supervisors
Xie Shi Ming Supervisors

Wuxi Huaguang Environment & Energy Group Co Headlines

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