WXT (Wuxin Technology Holdings) Interest Coverage: 52.28 (As of Dec. 2021)


What is Wuxin Technology Holdings Interest Coverage?

Wuxin Technology Holdings WXT Interest Coverage is 52.28 as of Dec. 2021.

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. Wuxin Technology Holdings's Operating Income for the three months ended in Dec. 2021 was $6.12 Mil. Wuxin Technology Holdings's Interest Expense for the three months ended in Dec. 2021 was $-0.12 Mil. Wuxin Technology Holdings's interest coverage for the quarter that ended in Dec. 2021 was 52.28. The higher the ratio, the stronger the company's financial strength is.

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


WXT's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 13.79
* Ranked among companies with meaningful Interest Coverage only.

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

Wuxin Technology Holdings  (NAS:WXT) 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 .

Wuxin Technology Holdings Interest Coverage Related Terms

Wuxin Technology Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Wuxin Technology 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.

Wuxin Technology Holdings Interest Coverage Chart

Wuxin Technology Holdings Annual Data
Trend Jun20 Jun21
Interest Coverage
69.82 60.83

Wuxin Technology Holdings Quarterly Data
Jun20 Dec20 Jun21 Dec21
Interest Coverage N/A 48.18 135.13 52.28

WXT vs : Interest Coverage Comparison

For the Communication Equipment subindustry, Wuxin Technology 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.

Wuxin Technology Holdings Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Wuxin Technology Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Wuxin Technology Holdings's Interest Coverage falls into.


Wuxin Technology 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.

Wuxin Technology Holdings's Interest Coverage for the fiscal year that ended in Jun. 2021 is calculated as

Here, for the fiscal year that ended in Jun. 2021, Wuxin Technology Holdings's Interest Expense was $-0.11 Mil. Its Operating Income was $6.69 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.53 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2021 )/Interest Expense (A: Jun. 2021 )
=-1*6.691/-0.11
=60.83

Wuxin Technology Holdings's Interest Coverage for the quarter that ended in Dec. 2021 is calculated as

Here, for the three months ended in Dec. 2021, Wuxin Technology Holdings's Interest Expense was $-0.12 Mil. Its Operating Income was $6.12 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.77 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2021 )/Interest Expense (Q: Dec. 2021 )
=-1*6.117/-0.117
=52.28

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 52.28 mean?
Wuxin Technology Holdings (WXT) has a Interest Coverage of 52.28 as of Dec. 2021. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Wuxin Technology Holdings and its competitors.
Is Wuxin Technology Holdings' Interest Coverage too high?
Wuxin Technology Holdings' current Interest Coverage is 52.28. The Hardware industry median Interest Coverage is 13.79. Wuxin Technology Holdings' value of 52.28 is 279.1% above this industry median.
How does Wuxin Technology Holdings' Interest Coverage compare to ?
Wuxin Technology Holdings' Interest Coverage of 52.28 can be compared against companies in the Hardware industry. The industry median Interest Coverage is 13.79. Wuxin Technology Holdings' value of 52.28 is 279.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 13.79, based on 1,671 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Wuxin Technology Holdings's current Interest Coverage of 52.28 is 279.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Wuxin Technology Holdings and its competitors. For the Hardware industry, the median Interest Coverage is 13.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wuxin Technology Holdings's current Interest Coverage is 52.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wuxin Technology Holdings stock overvalued right now?
Wuxin Technology Holdings (WXT) has a current Interest Coverage of 52.28. The current Interest Coverage is 52.28 and 279.1% above the Hardware industry median of 13.79. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Wuxin Technology Holdings (WXT), the current Interest Coverage is 52.28 as of Dec. 2021. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Wuxin Technology Holdings Business Description

Comparable Companies
Address No. 2 Qiongyu Road, Nanshan District, Tefa Information and Technology Plaza, Floor 15, Shenzhen, CHN, 518052
Wuxin Technology Holdings Inc is engaged in providing Internet of Things connectivity solutions. The company has developed an ant delete center (ADC) protocol, which is a wireless, decentralized, and ad hoc protocol derived from the foraging principle of ant colonies, and allows an IoT network of numerous nodes to efficiently detect the shortest path of data transmission and decentralize the control.