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XTEPY (Xtep International Holdings) Interest Coverage : 13.30 (As of Jun. 2024)


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What is Xtep International 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. Xtep International Holdings's Operating Income for the six months ended in Jun. 2024 was $142 Mil. Xtep International Holdings's Interest Expense for the six months ended in Jun. 2024 was $-11 Mil. Xtep International Holdings's interest coverage for the quarter that ended in Jun. 2024 was 13.30. The higher the ratio, the stronger the company's financial strength is.

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

XTEPY' s Interest Coverage Range Over the Past 10 Years
Min: 6.28   Med: 8.17   Max: 14.15
Current: 8.85


XTEPY's Interest Coverage is ranked better than
51.62% of 773 companies
in the Retail - Cyclical industry
Industry Median: 8.25 vs XTEPY: 8.85

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


Xtep International Holdings Interest Coverage Historical Data

The historical data trend for Xtep International 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.

* Premium members only.

Xtep International Holdings Interest Coverage Chart

Xtep International 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 7.72 6.70 14.15 10.82 7.97

Xtep International 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 16.90 6.64 11.12 5.46 13.30

Competitive Comparison of Xtep International Holdings's Interest Coverage

For the Apparel Retail subindustry, Xtep International 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.


Xtep International Holdings's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Xtep International Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Xtep International Holdings's Interest Coverage falls into.



Xtep International 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.

Xtep International 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, Xtep International Holdings's Interest Expense was $-25 Mil. Its Operating Income was $200 Mil. And its Long-Term Debt & Capital Lease Obligation was $320 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*199.621/-25.062
=7.97

Xtep International Holdings's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Xtep International Holdings's Interest Expense was $-11 Mil. Its Operating Income was $142 Mil. And its Long-Term Debt & Capital Lease Obligation was $229 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*141.547/-10.645
=13.30

* 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.


Xtep International Holdings  (OTCPK:XTEPY) 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 .


Xtep International Holdings Interest Coverage Related Terms

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


Xtep International Holdings Business Description

Traded in Other Exchanges
Address
No. 89 Jiayi Road, Xiamen Xtep Tower, Guanyinshan Siming District, Fujian Province, Xiamen, CHN, 361008
Xtep International Holdings Ltd owns the Chinese sportswear brand XTEP. The company markets its brand as a stylish professional sports brand with a focus on running gear. Footwear accounts for more than half of the company's revenue. The remaining revenue comes from apparel sales. The company has thousands of XTEP retail stores in China that are primarily operated by the company's distributors or authorized retailers. It also sells online through its website and third-party e-commerce platforms. In addition to China, Xtep has distributors in the Middle East, Europe, and Southeast Asia.