China East Education Holdings (HKSE:00667) Interest Coverage : 1.79 (As of Dec. 2023)

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What is China East Education 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. China East Education Holdings's Operating Income for the six months ended in Dec. 2023 was HK$133 Mil. China East Education Holdings's Interest Expense for the six months ended in Dec. 2023 was HK$-74 Mil. China East Education Holdings's interest coverage for the quarter that ended in Dec. 2023 was 1.79. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:00667' s Interest Coverage Range Over the Past 10 Years
Min: 2.58 Med: 7.56 Max: No Debt
Current: 2.58

HKSE:00667's Interest Coverage is ranked worse than
81.87% of 182 companies
in the Education industry
Industry Median: 15.35 vs HKSE:00667: 2.58

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

China East Education Holdings Interest Coverage Historical Data

The historical data trend for China East Education 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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China East Education Holdings Interest Coverage Chart

China East Education Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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7.56

3.96

3.72

2.91

2.58

China East Education Holdings Semi-Annual Data
	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial									2.58	3.86	1.85	3.32	1.79

Competitive Comparison of China East Education Holdings's Interest Coverage

For the Education & Training Services subindustry, China East Education 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.

China East Education Holdings's Interest Coverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, China East Education Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China East Education Holdings's Interest Coverage falls into.

China East Education 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.

China East Education 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, China East Education Holdings's Interest Expense was HK$-152 Mil. Its Operating Income was HK$393 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,430 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	392.624	/	-152.364
	=	2.58

China East Education Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, China East Education Holdings's Interest Expense was HK$-74 Mil. Its Operating Income was HK$133 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,430 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	132.562	/	-74.083
	=	1.79

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

China East Education Holdings (HKSE:00667) 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 .

China East Education Holdings Interest Coverage Related Terms

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

China East Education Holdings (HKSE:00667) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » China East Education Holdings Ltd (HKSE:00667) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ZX3:Germany

Address

No. 1009 Xuelin Road, Vocational Education Town, Yaohai District, Anhui Province, Hefei, CHN

Website

https://www.chinaeastedu.com

China East Education is the largest vocational training education provider in China in terms of average students enrolled. It was founded in 1988 and its business spans four segments: culinary arts, information & internet technology, auto services, and fashion & beauty. It runs schools under six brands: New East, Omick, Xinhua Internet, Wisezone, Wontone, and On-mind. It also operates customized catering experience centers under Cuisine Academy. Its average students enrolled was 142,765 as of Dec. 31, 2022. In 2022, China East Education's revenue breakdown by major businesses was 59% in culinary arts, 20% in information & internet technology, 19% in auto services.

China East Education Holdings (HKSE:00667) Headlines

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