Hangzhou Wensli Silk Culture Co (SZSE:301066) Interest Coverage : 141.23 (As of Dec. 2024)

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What is Hangzhou Wensli Silk Culture 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. Hangzhou Wensli Silk Culture Co's Operating Income for the three months ended in Dec. 2024 was ¥7.5 Mil. Hangzhou Wensli Silk Culture Co's Interest Expense for the three months ended in Dec. 2024 was ¥-0.1 Mil. Hangzhou Wensli Silk Culture Co's interest coverage for the quarter that ended in Dec. 2024 was 141.23. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Hangzhou Wensli Silk Culture Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Hangzhou Wensli Silk Culture Co's Interest Coverage or its related term are showing as below:

SZSE:301066' s Interest Coverage Range Over the Past 10 Years
Min: 33.91 Med: 238.26 Max: 1208.15
Current: 388.07

SZSE:301066's Interest Coverage is ranked better than
93.44% of 716 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.07 vs SZSE:301066: 388.07

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

Hangzhou Wensli Silk Culture Co Interest Coverage Historical Data

The historical data trend for Hangzhou Wensli Silk Culture 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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Hangzhou Wensli Silk Culture Co Interest Coverage Chart

Hangzhou Wensli Silk Culture Co Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

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146.72

474.00

33.91

329.79

388.06

Hangzhou Wensli Silk Culture Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Interest Coverage	Get a 7-Day Free Trial															482.21	765.90	766.56	331.31	141.23

Competitive Comparison of Hangzhou Wensli Silk Culture Co's Interest Coverage

For the Textile Manufacturing subindustry, Hangzhou Wensli Silk Culture 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.

Hangzhou Wensli Silk Culture Co's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Hangzhou Wensli Silk Culture Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hangzhou Wensli Silk Culture Co's Interest Coverage falls into.

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Hangzhou Wensli Silk Culture 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.

Hangzhou Wensli Silk Culture 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, Hangzhou Wensli Silk Culture Co's Interest Expense was ¥-0.1 Mil. Its Operating Income was ¥41.1 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥94.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	41.134	/	-0.106
	=	388.06

Hangzhou Wensli Silk Culture Co's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Hangzhou Wensli Silk Culture Co's Interest Expense was ¥-0.1 Mil. Its Operating Income was ¥7.5 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥94.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	7.485	/	-0.053
	=	141.23

The higher the ratio, the stronger the company's Financial Strength is.

Hangzhou Wensli Silk Culture Co (SZSE:301066) 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 .

Hangzhou Wensli Silk Culture Co Interest Coverage Related Terms

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

Hangzhou Wensli Silk Culture Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Hangzhou Wensli Silk Culture Co Ltd (SZSE:301066) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

No. 68 Tiancheng Road, Room 501, 5th Floor, Building 2, Wanshili Technology Building, Zhejiang Province, Hangzhou, CHN, 310021

Website

https://www.wensli.cn

Hangzhou Wensli Silk Culture Co Ltd is engaged in the research and development, design, production, and sales of silk related products. It develops high-end silk ornament and silk artworks based on traditional silk fabrics and silk garments. The company's main products can be divided into silk cultural and creative products (own terminal brands) and silk textile products (non-own terminal brands). The silk cultural and creative products with the Wanshili own brand as the core mainly include silk scarves, combination sets, home textiles, branded clothing, scarves, and silk crafts; and the silk textile products provided to women's clothing brands include silk fabrics, OEM clothing, and the digital printing processing services provided to customers by the company.

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