Longfor Group Holdings (Longfor Group Holdings) Interest Coverage : 24.43 (As of Dec. 2023)

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What is Longfor Group 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. Longfor Group Holdings's Operating Income for the six months ended in Dec. 2023 was $1,584 Mil. Longfor Group Holdings's Interest Expense for the six months ended in Dec. 2023 was $-65 Mil. Longfor Group Holdings's interest coverage for the quarter that ended in Dec. 2023 was 24.43. The higher the ratio, the stronger the company's financial strength is.

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

LGFRY' s Interest Coverage Range Over the Past 10 Years
Min: 21.22 Med: 148.95 Max: 497.37
Current: 21.22

LGFRY's Interest Coverage is ranked better than
76.22% of 1350 companies
in the Real Estate industry
Industry Median: 3.985 vs LGFRY: 21.22

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

Longfor Group Holdings Interest Coverage Historical Data

The historical data trend for Longfor Group 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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Longfor Group Holdings Interest Coverage Chart

Longfor Group Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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61.68

50.23

43.81

39.33

21.22

Longfor Group Holdings 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	Get a 7-Day Free Trial															66.70	26.48	52.41	18.11	24.43

Competitive Comparison of Longfor Group Holdings's Interest Coverage

For the Real Estate - Development subindustry, Longfor Group 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.

Longfor Group Holdings's Interest Coverage Distribution in the Real Estate Industry

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

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

Longfor Group 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.

Longfor Group 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, Longfor Group Holdings's Interest Expense was $-132 Mil. Its Operating Income was $2,800 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,065 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2799.638	/	-131.959
	=	21.22

Longfor Group Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Longfor Group Holdings's Interest Expense was $-65 Mil. Its Operating Income was $1,584 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,065 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1584.019	/	-64.837
	=	24.43

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

Longfor Group Holdings (OTCPK:LGFRY) 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 .

Longfor Group Holdings Interest Coverage Related Terms

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Longfor Group Holdings (Longfor Group Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Longfor Group Holdings Ltd (OTCPK:LGFRY) » Definitions » Interest Coverage

Traded in Other Exchanges

LNGPF:USA 00960:Hong Kong RLF:Germany

Address

No. 8 Beiyuan Street, Building 6, Beijing Longfor Blue Engine Industrial Park, Chaoyang District, Beijing, CHN, 100012

Website

https://www.longfor.com

Longfor Group Holdings, or Longfor, is a privately owned real estate developer in China with contracted sales value placing it among the top 10 of all China's developers. The company focuses on developing high-quality residential projects, as well as operating shopping malls and rental apartments in China's wealthier cities. Property development represents the majority of Longfor's revenue and gross profit, while income from commercial properties, property management, and project management services have been growing fast. At the end of 2022, Wu Yajun remained Longfor's largest shareholder with an over 43% equity interest, while her ex-husband Cai Kui has a 23% stake.