China Everbright Water (China Everbright Water) Interest Coverage : 3.67 (As of Dec. 2023)

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What is China Everbright Water 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 Everbright Water's Operating Income for the six months ended in Dec. 2023 was $137.0 Mil. China Everbright Water's Interest Expense for the six months ended in Dec. 2023 was $-37.3 Mil. China Everbright Water's interest coverage for the quarter that ended in Dec. 2023 was 3.67. 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. China Everbright Water Ltd interest coverage is 3.78, which is low.

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

BOTRF' s Interest Coverage Range Over the Past 10 Years
Min: 3.47 Med: 4.43 Max: 5.49
Current: 3.78

BOTRF's Interest Coverage is ranked better than
50.34% of 445 companies
in the Utilities - Regulated industry
Industry Median: 3.77 vs BOTRF: 3.78

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 Everbright Water Interest Coverage Historical Data

The historical data trend for China Everbright Water'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 Everbright Water Interest Coverage Chart

China Everbright Water Annual Data

Trend

Jun14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

4.21

5.30

5.03

3.47

3.78

China Everbright Water 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															5.33	3.59	3.36	3.88	3.67

Competitive Comparison of China Everbright Water's Interest Coverage

For the Utilities - Regulated Water subindustry, China Everbright Water'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 Everbright Water's Interest Coverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, China Everbright Water's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Everbright Water's Interest Coverage falls into.

China Everbright Water 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 Everbright Water'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 Everbright Water's Interest Expense was $-75.7 Mil. Its Operating Income was $286.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,382.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	285.991	/	-75.664
	=	3.78

China Everbright Water's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, China Everbright Water's Interest Expense was $-37.3 Mil. Its Operating Income was $137.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,382.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	136.951	/	-37.287
	=	3.67

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

China Everbright Water (OTCPK:BOTRF) 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 Everbright Water Interest Coverage Related Terms

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

China Everbright Water (China Everbright Water) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » China Everbright Water Ltd (OTCPK:BOTRF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

U9E:Singapore 01857:Hong Kong BIU2:Germany

Address

Number 1003 Shennan Avenue, 26th Floor, Block A, Oriental Xintiandi Plaza, Futian District, Shenzhen, CHN, 518000

Website

https://www.ebwater.com

China Everbright Water Ltd provides water supply, waste water treatment, sludge treatment, and other environmental services. It designs, constructs, and operates water treatment plants, and extracts energy from water discharged by the plants to power air-conditioning for various buildings. Concession arrangements from various Chinese government authorities span multiple years, and allow the company to operate plants and charge users a fee for consumption. Under the arrangements, China Everbright is obligated to maintain the plants, and receives annual payments from the grantors. Raw materials and consumables are utilized by experienced technicians to repair and maintain facilities. Majority of sales and assets are generated and located in China.