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Advanced Fiber Resources (Zhuhai) (SZSE:300620) Interest Coverage : 1.84 (As of Mar. 2025)


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What is Advanced Fiber Resources (Zhuhai) 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. Advanced Fiber Resources (Zhuhai)'s Operating Income for the three months ended in Mar. 2025 was ¥7 Mil. Advanced Fiber Resources (Zhuhai)'s Interest Expense for the three months ended in Mar. 2025 was ¥-4 Mil. Advanced Fiber Resources (Zhuhai)'s interest coverage for the quarter that ended in Mar. 2025 was 1.84. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Advanced Fiber Resources (Zhuhai)'s Interest Coverage or its related term are showing as below:

SZSE:300620' s Interest Coverage Range Over the Past 10 Years
Min: 7.77   Med: 135.43   Max: 541.25
Current: 7.77


SZSE:300620's Interest Coverage is ranked worse than
62.3% of 1602 companies
in the Hardware industry
Industry Median: 13.105 vs SZSE:300620: 7.77

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


Advanced Fiber Resources (Zhuhai) Interest Coverage Historical Data

The historical data trend for Advanced Fiber Resources (Zhuhai)'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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Advanced Fiber Resources (Zhuhai) Interest Coverage Chart

Advanced Fiber Resources (Zhuhai) 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 541.25 102.66 68.77 36.90 9.56

Advanced Fiber Resources (Zhuhai) 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 1.69 12.64 20.78 1.77 1.84

Competitive Comparison of Advanced Fiber Resources (Zhuhai)'s Interest Coverage

For the Communication Equipment subindustry, Advanced Fiber Resources (Zhuhai)'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.


Advanced Fiber Resources (Zhuhai)'s Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Advanced Fiber Resources (Zhuhai)'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where Advanced Fiber Resources (Zhuhai)'s Interest Coverage falls into.


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Advanced Fiber Resources (Zhuhai) 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.

Advanced Fiber Resources (Zhuhai)'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, Advanced Fiber Resources (Zhuhai)'s Interest Expense was ¥-8 Mil. Its Operating Income was ¥78 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥162 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*78.313/-8.195
=9.56

Advanced Fiber Resources (Zhuhai)'s Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Advanced Fiber Resources (Zhuhai)'s Interest Expense was ¥-4 Mil. Its Operating Income was ¥7 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥259 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*6.89/-3.737
=1.84

* 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.


Advanced Fiber Resources (Zhuhai)  (SZSE:300620) 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 .


Advanced Fiber Resources (Zhuhai) Interest Coverage Related Terms

Thank you for viewing the detailed overview of Advanced Fiber Resources (Zhuhai)'s Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Advanced Fiber Resources (Zhuhai) Business Description

Traded in Other Exchanges
N/A
Address
No. 1 Software Park Road, Unit 1-6, Unit 8, 2nd Floor, Building 5, Tangjia, Guangdong Province, Zhuhai, CHN, 519080
Advanced Fiber Resources (Zhuhai) Ltd is a provider of passive optical components for telecommunication, fiber laser, and fiber sensor applications. The company specializes in fiber optic components and polarization maintaining components. The company designs and manufactures both standard and custom components, and also offers contract manufacturing solutions to its customers. The company's products category comprises components for industrial laser, bio-medical equipment, test equipment and others, components for optical network, and components for fiber sensing. It sells the products in China, and also exports it to the various other countries.
Executives
Ji Gui Jun Executives
Executives
Directors, executives
Wu Wei Directors, executives
Wu Guo Qin Executives
Zhou Chun Hua Supervisors
Qiu Er Hu Executives
Zhong Guo Qing Executives
Directors, executives
Wu Yu Ling Director
Feng Yong Mao Director
Directors, executives
Liang Xi Huan Securities Affairs Representative

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