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STFS (Star Fashion Culture Holdings) Interest Coverage : 39.38 (As of Jun. 2024)


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What is Star Fashion Culture Holdings 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. Star Fashion Culture Holdings's Operating Income for the six months ended in Jun. 2024 was $0.63 Mil. Star Fashion Culture Holdings's Interest Expense for the six months ended in Jun. 2024 was $-0.02 Mil. Star Fashion Culture Holdings's interest coverage for the quarter that ended in Jun. 2024 was 39.38. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Star Fashion Culture Holdings's Interest Coverage or its related term are showing as below:

STFS' s Interest Coverage Range Over the Past 10 Years
Min: 6.43   Med: 23.62   Max: 67.71
Current: 67.71


STFS's Interest Coverage is ranked better than
72.46% of 621 companies
in the Media - Diversified industry
Industry Median: 11.41 vs STFS: 67.71

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


Star Fashion Culture Holdings Interest Coverage Historical Data

The historical data trend for Star Fashion Culture Holdings'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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Star Fashion Culture Holdings Interest Coverage Chart

Star Fashion Culture Holdings Annual Data
Trend Jun22 Jun23 Jun24
Interest Coverage
6.43 23.62 66.94

Star Fashion Culture Holdings Semi-Annual Data
Jun22 Dec22 Jun23 Dec23 Jun24
Interest Coverage N/A 39.79 5.67 97.93 39.38

Competitive Comparison of Star Fashion Culture Holdings's Interest Coverage

For the Advertising Agencies subindustry, Star Fashion Culture Holdings'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.


Star Fashion Culture Holdings's Interest Coverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Star Fashion Culture Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Star Fashion Culture Holdings's Interest Coverage falls into.


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Star Fashion Culture Holdings 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.

Star Fashion Culture Holdings'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, Star Fashion Culture Holdings's Interest Expense was $-0.03 Mil. Its Operating Income was $2.08 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*2.075/-0.031
=66.94

Star Fashion Culture Holdings's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Star Fashion Culture Holdings's Interest Expense was $-0.02 Mil. Its Operating Income was $0.63 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*0.63/-0.016
=39.38

* 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.


Star Fashion Culture Holdings  (NAS:STFS) 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 .


Star Fashion Culture Holdings Interest Coverage Related Terms

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


Star Fashion Culture Holdings Business Description

Traded in Other Exchanges
N/A
Address
Sishui Road, 12th Floor, No.611, Huli District, Xiamen, CHN
Star Fashion Culture Holdings Ltd is a content marketing solutions services provider. The company offer services focusing on marketing campaign planning and execution, offline advertising services; and online precision marketing services. The services also include marketing campaign planning and execution, events including marathons, sports events, and music festivals.