Hollysys Automation Technologies (Hollysys Automation Technologies) Interest Coverage

: 108.05 (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. Hollysys Automation Technologies's Operating Income for the three months ended in Sep. 2023 was $34.3 Mil. Hollysys Automation Technologies's Interest Expense for the three months ended in Sep. 2023 was $-0.3 Mil. Hollysys Automation Technologies's interest coverage for the quarter that ended in Sep. 2023 was 108.05. 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. Hollysys Automation Technologies Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

HOLI' s Interest Coverage Range Over the Past 10 Years
Min: 49.25 Med: 103.96 Max: 343.77
Current: 105.35

HOLI's Interest Coverage is ranked better than
81.75% of 2302 companies
in the Industrial Products industry
Industry Median: 13.755 vs HOLI: 105.35

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

Hollysys Automation Technologies Interest Coverage Historical Data

The historical data trend for Hollysys Automation Technologies'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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Hollysys Automation Technologies Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

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235.22

343.77

157.77

101.98

105.94

Hollysys Automation Technologies Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial															115.69	212.65	43.74	68.48	108.05

Competitive Comparison

For the Electrical Equipment & Parts subindustry, Hollysys Automation Technologies'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.

Hollysys Automation Technologies Interest Coverage Distribution

For the Industrial Products industry and Industrials sector, Hollysys Automation Technologies's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hollysys Automation Technologies's Interest Coverage falls into.

Hollysys Automation Technologies 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.

Hollysys Automation Technologies's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Hollysys Automation Technologies's Interest Expense was $-0.9 Mil. Its Operating Income was $93.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $17.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	93.013	/	-0.878
	=	105.94

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

Here, for the three months ended in Sep. 2023, Hollysys Automation Technologies's Interest Expense was $-0.3 Mil. Its Operating Income was $34.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $46.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	34.251	/	-0.317
	=	108.05

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

Hollysys Automation Technologies (NAS:HOLI) 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 .

Hollysys Automation Technologies Interest Coverage Related Terms

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Hollysys Automation Technologies (Hollysys Automation Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Hollysys Automation Technologies Ltd (NAS:HOLI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

46H:Germany

Address

No. 2 Disheng Middle Road, Beijing Economic-Technological Development Area, Beijing, CHN, 100176

Website

https://www.hollysys.com/index.php

Hollysys Automation Technologies Ltd is a China-based company that provides automation and control technologies and products. The company operates through three segments. Its IA segment supplies solutions including third-party hardware-centric products, proprietary software products, and others. The Rail segment supplies train control center and automation train protection to the rail and subway industries. The M&E segment consists of its two Southeast Asia-based subsidiaries that provide mechanical and electrical solutions. Hollysys Automation Technologies generates most of its sales from the Chinese domestic market.