KE Holdings (KE Holdings) Interest Coverage

: N/A (As of Sep. 2023)

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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. KE Holdings's Operating Income for the three months ended in Sep. 2023 was $126 Mil. KE Holdings's Interest Expense for the three months ended in Sep. 2023 was $0 Mil. GuruFocus does not calculate 's interest coverage with the available data. 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. KE Holdings Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

BEKE' s Interest Coverage Range Over the Past 10 Years
Min: 20.97 Med: 29.54 Max: 238.16
Current: 238.16

BEKE's Interest Coverage is ranked better than
89.26% of 1350 companies
in the Real Estate industry
Industry Median: 4 vs BEKE: 238.16

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

KE Holdings Interest Coverage Historical Data

The historical data trend for KE 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.

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KE Holdings Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

20.97

38.11

KE Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage																N/A	44.02	N/A	N/A	N/A

Competitive Comparison

For the Real Estate Services subindustry, KE 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.

KE Holdings Interest Coverage Distribution

For the Real Estate industry and Real Estate sector, KE Holdings's Interest Coverage distribution charts can be found below:

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

KE 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.

KE Holdings's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, KE Holdings's Interest Expense was $-2 Mil. Its Operating Income was $-2 Mil. And its Long-Term Debt & Capital Lease Obligation was $947 Mil.

KE Holdings did not have earnings to cover the interest expense.

KE Holdings's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, KE Holdings's Interest Expense was $0 Mil. Its Operating Income was $126 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,109 Mil.

GuruFocus does not calculate KE Holdings's interest coverage with the available data.

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

KE Holdings (NYSE:BEKE) 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 .

KE Holdings Interest Coverage Related Terms

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KE Holdings (KE Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » KE Holdings Inc (NYSE:BEKE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

02423:Hong Kong KE8:Germany

Address

No. 2 Chuangye Road, Oriental Electronic Technology Building, Haidian District, Beijing, CHN, 100086

Website

https://investors.ke.com

KE Holdings, or Beike, is a large residential real estate sales and rental brokerage company in China. Founded in 2001, the company operates through self-owned Lianjia stores in Beijing and Shanghai and connected third-party agencies including franchise brand Deyou in other cities, with commissions charged on existing home and new home transactions. Leveraging an online-offline hybrid model, Beike also attract clients through its namesake online marketplace. The company tapped into home renovation services by acquiring Shengdu Home Decoration in 2022. As at the end of 2022, Beike's cofounders collectively control the company, while Tencent and its affiliates share 8% of voting power.