AECC Aviation Power Co (SHSE:600893) Interest Coverage: 1.78 (As of Mar. 2026) — 51% Below Median

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SHSE:600893 AECC Aviation Power Co Ltd SHSE:600893
65 GF Score
Price ¥32.33
GF Value ¥46.93
Valuation Possible Value Trap
! 10 Warning Signs
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What is AECC Aviation Power Co Interest Coverage?

AECC Aviation Power Co SHSE:600893 -3.20% 65 Interest Coverage is 1.78 as of Mar. 2026, which is 51% below its 10-year median of 3.63. GuruFocus rates SHSE:600893 with a GF Score™ of 65/100 and a GF Value™ of ¥46.93 (Possible Value Trap). The stock has 10 warning signs investors should review. Among 242 Aerospace & Defense companies, AECC Aviation Power Co ranks worse than 82.64% on this metric.

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. AECC Aviation Power Co's Operating Income for the three months ended in Mar. 2026 was ¥212 Mil. AECC Aviation Power Co's Interest Expense for the three months ended in Mar. 2026 was ¥-119 Mil. AECC Aviation Power Co's interest coverage for the quarter that ended in Mar. 2026 was 1.78. 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. AECC Aviation Power Co Ltd interest coverage is 2.66, which is low.

The historical rank and industry rank for AECC Aviation Power Co's Interest Coverage or its related term are showing as below:

SHSE:600893' s Interest Coverage Range Over the Past 10 Years
Min: 2.15   Med: 3.63   Max: 8.79
Current: 2.66


SHSE:600893's Interest Coverage is ranked worse than
82.64% of 242 companies
in the Aerospace & Defense industry
Industry Median: 8.285 vs SHSE:600893: 2.66

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


AECC Aviation Power Co  (SHSE:600893) 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 .


AECC Aviation Power Co Interest Coverage Related Terms


AECC Aviation Power Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for AECC Aviation Power 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.

AECC Aviation Power Co Interest Coverage Chart

AECC Aviation Power Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.67 8.79 6.79 3.59 2.55

AECC Aviation Power Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 1.22 2.31 1.99 4.05 1.78

SHSE:600893 vs SPCX, GE, RTX: Interest Coverage Comparison

For the Aerospace & Defense subindustry, AECC Aviation Power 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.


AECC Aviation Power Co Interest Coverage vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, AECC Aviation Power Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where AECC Aviation Power Co's Interest Coverage falls into.


SHSE:600893
65GF Score
AECC Aviation Power Co Ltd SHSE:600893
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

AECC Aviation Power 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.

AECC Aviation Power Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, AECC Aviation Power Co's Interest Expense was ¥-623 Mil. Its Operating Income was ¥1,592 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥759 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1592.139/-623.491
=2.55

AECC Aviation Power Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, AECC Aviation Power Co's Interest Expense was ¥-119 Mil. Its Operating Income was ¥212 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥758 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*212.164/-119.149
=1.78

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 1.78 mean?
AECC Aviation Power Co (SHSE:600893) has a Interest Coverage of 1.78 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on AECC Aviation Power Co and its competitors. This is 51% below median its historical median of 3.63. Over the past decade, AECC Aviation Power Co's Interest Coverage has ranged from 2.15 to 8.79. According to the industry distribution chart, AECC Aviation Power Co ranks #200 out of 242 companies in the Aerospace & Defense industry, placing it in the top 82.6%.
Is AECC Aviation Power Co's Interest Coverage too high?
AECC Aviation Power Co's current Interest Coverage of 1.78 is 51% below median its 10-year median of 3.63. Over the past 10 years, this metric has ranged from a low of 2.15 to a high of 8.79. The Aerospace & Defense industry median Interest Coverage is 8.29. AECC Aviation Power Co's value of 1.78 is 78.5% below this industry median. Based on the distribution chart, AECC Aviation Power Co ranks #200 out of 242 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, AECC Aviation Power Co 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 AECC Aviation Power Co's Interest Coverage compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, AECC Aviation Power Co ranks #200 out of 242 companies for Interest Coverage. This places AECC Aviation Power Co in the lower half of its industry. The industry median Interest Coverage is 8.29. AECC Aviation Power Co's value of 1.78 is 78.5% below this benchmark. Historically, AECC Aviation Power Co's own Interest Coverage has ranged from 2.15 to 8.79 over the past decade. While the company's 10-year median is 3.63 vs. the industry median of 8.29, AECC Aviation Power Co has consistently been below the industry average. 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 an Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.29, based on 242 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. AECC Aviation Power Co's current Interest Coverage of 1.78 is 78.5% below the industry median. 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 AECC Aviation Power Co and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AECC Aviation Power Co's current Interest Coverage is 1.78, which is 51% below median its own 10-year median of 3.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AECC Aviation Power Co stock overvalued right now?
Based on GuruFocus' analysis, AECC Aviation Power Co (SHSE:600893) is currently considered Possible Value Trap. The stock's GF Value™ is ¥46.93, compared to a current price of ¥32.33 — trading 31.1% below its estimated fair value. The current Interest Coverage is 1.78, which is 51% below median its 10-year median of 3.63 and 78.5% below the Aerospace & Defense industry median of 8.29. AECC Aviation Power Co's overall GF Score™ is 65/100 with 10 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 AECC Aviation Power Co (SHSE:600893), the current Interest Coverage is 1.78 as of Mar. 2026. 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 AECC Aviation Power Co (SHSE:600893) Overvalued in 2026?

Based on GuruFocus' analysis, AECC Aviation Power Co stock appears to be undervalued. The current stock price of ¥32.33 is trading 31.1% below its estimated GF Value™ of ¥46.93. GuruFocus considers AECC Aviation Power Co to be Possible Value Trap.

Key valuation signals for SHSE:600893:

  • Interest Coverage: 1.78 (51% below median its 10-year median of 3.63)
  • GF Value™: ¥46.93 vs. price of ¥32.33 (31.1% below fair value)
  • GF Score™: 65/100 with 10 warning signs
  • Industry Position: 78.5% below the Aerospace & Defense median (#200 of 242)

No single metric tells the full story. See the SHSE:600893 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


AECC Aviation Power Co Business Description

Address Xijiawan, Weiyang District, Shaanxi Province, Xi\'an, CHN, 710021
AECC Aviation Power Co Ltd is a China-based manufacturer of aeronautical engines. It engaged in the design, development, production, maintenance, marketing, and after-sales service of military aircraft and civil aircraft power devices, second power devices, gas turbines, helicopter transmission systems, and aero-engine technology derivative products; customers involved in aviation, aerospace, ships, weapons, Energy, and airspace and other fields. The company designs and produces products such as turbojets, turbofans, turboshafts, turboprops, and pistons, such as aero engines, gas turbines, and helicopter transmission systems.
65GF Score

Get the complete analysis for SHSE:600893

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥32.33
Price
¥46.93
GF Value