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Shareate Tools (SHSE:688257) Interest Coverage : 9.78 (As of Mar. 2025)


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What is Shareate Tools 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. Shareate Tools's Operating Income for the three months ended in Mar. 2025 was ¥67 Mil. Shareate Tools's Interest Expense for the three months ended in Mar. 2025 was ¥-7 Mil. Shareate Tools's interest coverage for the quarter that ended in Mar. 2025 was 9.78. The higher the ratio, the stronger the company's financial strength is.

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

SHSE:688257' s Interest Coverage Range Over the Past 10 Years
Min: 14.01   Med: 33.11   Max: 64.24
Current: 14.01


SHSE:688257's Interest Coverage is ranked worse than
52.3% of 2283 companies
in the Industrial Products industry
Industry Median: 15.65 vs SHSE:688257: 14.01

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


Shareate Tools Interest Coverage Historical Data

The historical data trend for Shareate Tools'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.

Shareate Tools Interest Coverage Chart

Shareate Tools Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 55.07 64.24 36.74 26.07 17.83

Shareate Tools Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 23.94 19.48 14.24 15.99 9.78

Competitive Comparison of Shareate Tools's Interest Coverage

For the Tools & Accessories subindustry, Shareate Tools'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.


Shareate Tools's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shareate Tools's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shareate Tools's Interest Coverage falls into.


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Shareate Tools 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.

Shareate Tools's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Shareate Tools's Interest Expense was ¥-14 Mil. Its Operating Income was ¥258 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥43 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*258.005/-14.469
=17.83

Shareate Tools's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Shareate Tools's Interest Expense was ¥-7 Mil. Its Operating Income was ¥67 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥52 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*67.068/-6.856
=9.78

* 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.


Shareate Tools  (SHSE:688257) 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 .


Shareate Tools Interest Coverage Related Terms

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


Shareate Tools Business Description

Traded in Other Exchanges
N/A
Address
133 Shuangma Street, Weiting Town, Suzhou Industrial Park, Jiangsu Province, Suzhou, CHN, 215121
Shareate Tools Ltd is a national high-tech enterprise, engaged in cemented carbide products and rock drilling tools. Its main products are Rotary Tricone Bit, DTH Hammer & Bit for mining, water well, and oil-field drilling applications, oil drilling, and mining cemented carbide, carbide substrates for PDC bits, petroleum drill bit nozzle, ultra-fine cemented carbide rod, fine grain cutting tools, stamping die plate, cold heading dies, powder metallurgy dies, tungsten carbide tubular welding, wear parts, non-standard parts. It exports to South America, Africa, Australia, Russia, South Korea, the USA, Canada and other countries.
Executives
Yu Li Xin Core technical personnel
Yang Han Min Core technical personnel
Li Ning Core technical personnel
senior management
Lu Qing Zhong Core technical personnel
Liu Yong senior management
Zhang Yong Qiang Supervisors
Rao Xiang senior management
Wu He Hong Directors, senior managers
Xue You Gang Supervisors
Yuan Ai Directors, senior managers
Liu Guo Zhu Directors, senior managers

Shareate Tools Headlines

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