LHN (HKSE:01730) Interest Coverage : 2.32 (As of Sep. 2023)

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What is LHN 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. LHN's Operating Income for the six months ended in Sep. 2023 was HK$61.6 Mil. LHN's Interest Expense for the six months ended in Sep. 2023 was HK$-26.5 Mil. LHN's interest coverage for the quarter that ended in Sep. 2023 was 2.32. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. LHN Ltd interest coverage is 2.45, which is low.

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

HKSE:01730' s Interest Coverage Range Over the Past 10 Years
Min: 0.67 Med: 5.21 Max: 13.04
Current: 2.45

HKSE:01730's Interest Coverage is ranked worse than
63.66% of 1351 companies
in the Real Estate industry
Industry Median: 3.96 vs HKSE:01730: 2.45

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

LHN Interest Coverage Historical Data

The historical data trend for LHN'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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LHN Interest Coverage Chart

LHN Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

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0.67

6.21

6.73

4.20

2.39

LHN Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial														5.84	5.06	3.14	2.58	2.32

Competitive Comparison of LHN's Interest Coverage

For the Real Estate Services subindustry, LHN'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.

LHN's Interest Coverage Distribution in the Real Estate Industry

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

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

LHN 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.

LHN's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, LHN's Interest Expense was HK$-51.1 Mil. Its Operating Income was HK$122.0 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,316.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	121.994	/	-51.063
	=	2.39

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

Here, for the six months ended in Sep. 2023, LHN's Interest Expense was HK$-26.5 Mil. Its Operating Income was HK$61.6 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,316.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	61.551	/	-26.504
	=	2.32

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

LHN (HKSE:01730) 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 .

LHN Interest Coverage Related Terms

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

LHN (HKSE:01730) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » LHN Ltd (HKSE:01730) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

41O:Singapore

Address

75 Beach Road, No. 04-01, Singapore, SGP, 189689

Website

https://www.lhngroup.com

LHN Ltd is an investment holding company. It is a real estate management services group with the distinguishing ability to generate value for landlords and tenants through its expertise in space optimization. It also provides complete facilities management and logistics services, which serve to complement its space optimization business. Its operating segments include the Industrial group, Commercial Group, Residential Group, Property development group, Facilities management group and Energy group. Its geographical segments include Singapore, Hong Kong, Indonesia, Thailand, Malayasia, People's Republic of China, Cambodia and Myanmar of which the majority of the revenue comes from Singapore.

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