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Shanghai Chemspec (SHSE:688602) Interest Coverage : 21.67 (As of Mar. 2025)


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What is Shanghai Chemspec 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. Shanghai Chemspec's Operating Income for the three months ended in Mar. 2025 was ¥32.8 Mil. Shanghai Chemspec's Interest Expense for the three months ended in Mar. 2025 was ¥-1.5 Mil. Shanghai Chemspec's interest coverage for the quarter that ended in Mar. 2025 was 21.67. The higher the ratio, the stronger the company's financial strength is.

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


SHSE:688602's Interest Coverage is not ranked *
in the Chemicals industry.
Industry Median: 9.72
* Ranked among companies with meaningful Interest Coverage only.

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


Shanghai Chemspec Interest Coverage Historical Data

The historical data trend for Shanghai Chemspec'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.

Shanghai Chemspec Interest Coverage Chart

Shanghai Chemspec Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 13.95 20.99 26.53 11.17 -

Shanghai Chemspec Quarterly Data
Dec17 Dec18 Jun19 Sep19 Dec19 Dec20 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 - - - - 21.67

Competitive Comparison of Shanghai Chemspec's Interest Coverage

For the Chemicals subindustry, Shanghai Chemspec'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.


Shanghai Chemspec's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Shanghai Chemspec's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shanghai Chemspec's Interest Coverage falls into.


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Shanghai Chemspec 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.

Shanghai Chemspec'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, Shanghai Chemspec's Interest Expense was ¥-7.4 Mil. Its Operating Income was ¥-94.5 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥83.3 Mil.

Shanghai Chemspec did not have earnings to cover the interest expense.

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

Here, for the three months ended in Mar. 2025, Shanghai Chemspec's Interest Expense was ¥-1.5 Mil. Its Operating Income was ¥32.8 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥102.0 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*32.833/-1.515
=21.67

* 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.


Shanghai Chemspec  (SHSE:688602) 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 .


Shanghai Chemspec Interest Coverage Related Terms

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Shanghai Chemspec Business Description

Traded in Other Exchanges
N/A
Address
Qilianshan South Road, Building 1, No. 200, Lane 2891, Putuo, Shanghai, CHN, 200331
Shanghai Chemspec Corp is engaged in research & development, production and sales of fine chemicals. It is globally recognized as an industry leader in providing fluorinated specialty chemicals serving markets in a variety of applications. These include liquid crystals, lithium-ion battery components, pharmaceutical chemicals, and agrochemicals.

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