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Xinchen China Power Holdings (STU:4XI) Interest Coverage : 1.64 (As of Dec. 2023)


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What is Xinchen China Power 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. Xinchen China Power Holdings's Operating Income for the six months ended in Dec. 2023 was €5.5 Mil. Xinchen China Power Holdings's Interest Expense for the six months ended in Dec. 2023 was €-3.4 Mil. Xinchen China Power Holdings's interest coverage for the quarter that ended in Dec. 2023 was 1.64. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Xinchen China Power Holdings's Interest Coverage or its related term are showing as below:

STU:4XI' s Interest Coverage Range Over the Past 10 Years
Min: 1   Med: 2.75   Max: 8.02
Current: 1.34


STU:4XI's Interest Coverage is ranked worse than
89.33% of 1040 companies
in the Vehicles & Parts industry
Industry Median: 8.01 vs STU:4XI: 1.34

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


Xinchen China Power Holdings Interest Coverage Historical Data

The historical data trend for Xinchen China Power 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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Xinchen China Power Holdings Interest Coverage Chart

Xinchen China Power Holdings 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 1.00 - - - 1.13

Xinchen China Power Holdings Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 - - 0.71 1.64 1.05

Competitive Comparison of Xinchen China Power Holdings's Interest Coverage

For the Auto Parts subindustry, Xinchen China Power 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.


Xinchen China Power Holdings's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Xinchen China Power Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Xinchen China Power Holdings's Interest Coverage falls into.



Xinchen China Power 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.

Xinchen China Power Holdings'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, Xinchen China Power Holdings's Interest Expense was €-7.4 Mil. Its Operating Income was €8.3 Mil. And its Long-Term Debt & Capital Lease Obligation was €59.3 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*8.341/-7.36
=1.13

Xinchen China Power Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Xinchen China Power Holdings's Interest Expense was €-3.4 Mil. Its Operating Income was €5.5 Mil. And its Long-Term Debt & Capital Lease Obligation was €59.3 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*5.538/-3.384
=1.64

* 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.


Xinchen China Power Holdings  (STU:4XI) 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 .


Xinchen China Power Holdings Interest Coverage Related Terms

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


Xinchen China Power Holdings Business Description

Traded in Other Exchanges
Address
8 Connaught Road Central, Suites 1602-05, Chater House, Hong Kong, HKG
Xinchen China Power Holdings Ltd is an investment holding company engaged in the automotive sector. The company is principally involved in the development, manufacture, and sale of automotive engines and engine parts and components for passenger vehicles and light-duty commercial vehicles. The group operates with three business segment which includes Gasoline Engines, Diesel Engines, and Engine Components. Its product includes 1TZS, Crankshaft, link, CE12, DK4, and others. The business activity of the company functions in China.

Xinchen China Power Holdings Headlines

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