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Dongguan Golden Sun Abrasives Co (SZSE:300606) Interest Coverage : 5.62 (As of Mar. 2025)


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What is Dongguan Golden Sun Abrasives Co 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. Dongguan Golden Sun Abrasives Co's Operating Income for the three months ended in Mar. 2025 was ¥11.1 Mil. Dongguan Golden Sun Abrasives Co's Interest Expense for the three months ended in Mar. 2025 was ¥-2.0 Mil. Dongguan Golden Sun Abrasives Co's interest coverage for the quarter that ended in Mar. 2025 was 5.62. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dongguan Golden Sun Abrasives Co's Interest Coverage or its related term are showing as below:

SZSE:300606' s Interest Coverage Range Over the Past 10 Years
Min: 6.95   Med: 98.01   Max: 1002.19
Current: 6.95


SZSE:300606's Interest Coverage is ranked worse than
51.39% of 1327 companies
in the Construction industry
Industry Median: 7.24 vs SZSE:300606: 6.95

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


Dongguan Golden Sun Abrasives Co Interest Coverage Historical Data

The historical data trend for Dongguan Golden Sun Abrasives 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.

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Dongguan Golden Sun Abrasives Co Interest Coverage Chart

Dongguan Golden Sun Abrasives Co 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 130.78 54.36 22.11 30.72 7.20

Dongguan Golden Sun Abrasives Co 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 4.76 18.18 6.00 1.35 5.62

Competitive Comparison of Dongguan Golden Sun Abrasives Co's Interest Coverage

For the Building Products & Equipment subindustry, Dongguan Golden Sun Abrasives 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.


Dongguan Golden Sun Abrasives Co's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Dongguan Golden Sun Abrasives Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dongguan Golden Sun Abrasives Co's Interest Coverage falls into.


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Dongguan Golden Sun Abrasives 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.

Dongguan Golden Sun Abrasives Co'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, Dongguan Golden Sun Abrasives Co's Interest Expense was ¥-3.5 Mil. Its Operating Income was ¥25.0 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥156.4 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*25.013/-3.474
=7.20

Dongguan Golden Sun Abrasives Co's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Dongguan Golden Sun Abrasives Co's Interest Expense was ¥-2.0 Mil. Its Operating Income was ¥11.1 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥181.6 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*11.137/-1.981
=5.62

* 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.


Dongguan Golden Sun Abrasives Co  (SZSE:300606) 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 .


Dongguan Golden Sun Abrasives Co Interest Coverage Related Terms

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Dongguan Golden Sun Abrasives Co Business Description

Traded in Other Exchanges
N/A
Address
No. 1, Dahuan Road, Dalingshan Town, Guangdong Province, Dongguan, CHN, 523826
Dongguan Golden Sun Abrasives Co Ltd is based in China. The company is mainly engaged in the research and development, production and sales of polishing materials, high-end intelligent equipment and precision structural parts manufacturing services, providing customers with comprehensive solutions for precision grinding and polishing and precision structural parts manufacturing.
Executives
Du Zhang Bo Director
Yang Wei Directors, executives
Fang Hong Directors, executives
Liu Yi Biao Directors, executives
Du Yan Yan Secretary Dong
Nong Zhong Chao Executives
Zhu Yuan Ji Executives
Yan Xin Ting Supervisors
Yang Lu Directors, executives
Li Ya Bin Supervisors
Xu Man Director

Dongguan Golden Sun Abrasives Co Headlines

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