Hang Lung Properties (FRA:AOP) Interest Coverage

: 9.28 (As of Dec. 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. Hang Lung Properties's Operating Income for the six months ended in Dec. 2023 was €380 Mil. Hang Lung Properties's Interest Expense for the six months ended in Dec. 2023 was €-41 Mil. Hang Lung Properties's interest coverage for the quarter that ended in Dec. 2023 was 9.28. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Hang Lung Properties's Interest Coverage or its related term are showing as below:

FRA:AOP' s Interest Coverage Range Over the Past 10 Years
Min: 5.97 Med: 13.07 Max: 2947
Current: 11.07

FRA:AOP's Interest Coverage is ranked better than
68.97% of 1347 companies
in the Real Estate industry
Industry Median: 4.01 vs FRA:AOP: 11.07

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

Hang Lung Properties Interest Coverage Historical Data

The historical data trend for Hang Lung Properties'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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Hang Lung Properties Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2,942.36

48.94

15.98

15.07

11.07

Hang Lung Properties Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage																14.94	15.66	14.48	13.48	9.28

Competitive Comparison

For the Real Estate Services subindustry, Hang Lung Properties'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.

Hang Lung Properties Interest Coverage Distribution

For the Real Estate industry and Real Estate sector, Hang Lung Properties's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hang Lung Properties's Interest Coverage falls into.

Hang Lung Properties 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.

Hang Lung Properties'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, Hang Lung Properties's Interest Expense was €-72 Mil. Its Operating Income was €792 Mil. And its Long-Term Debt & Capital Lease Obligation was €5,462 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	791.74	/	-71.507
	=	11.07

Hang Lung Properties's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Hang Lung Properties's Interest Expense was €-41 Mil. Its Operating Income was €380 Mil. And its Long-Term Debt & Capital Lease Obligation was €5,462 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	380.312	/	-40.978
	=	9.28

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

Hang Lung Properties (FRA:AOP) 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 .

Hang Lung Properties Interest Coverage Related Terms

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

Hang Lung Properties (FRA:AOP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Hang Lung Properties Ltd (FRA:AOP) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HLPPY:USA HLPPF:USA 00101:Hong Kong

Address

4 Des Voeux Road Central, 28th Floor, Standard Chartered Bank Building, Hong Kong, HKG

Website

https://www.hanglung.com

Hung Lung Properties is the property arm of Hang Lung Group. The company primarily operates in Hong Kong and China where it develops and invests in a portfolio of commercial properties for rental income as well as develop residential properties for sale. Most of its revenue is generated in China where it focuses on retail malls in Tier 1 and 2 cities such as Shanghai, Wuxi, Hangzhou, Wuhan, Kunming Jinan, Dalian, Shenyang, and Tianjin. As such, investors view the company as a proxy for China's overall retail growth. The company is 59% owned by Hang Lung Group, and led by Ronnie Chan, who has been the chairman of the company since 1991.

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