BYD Co (BYD Co) Interest Coverage

: 24.92 (As of Dec. 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. BYD Co's Operating Income for the three months ended in Dec. 2023 was $1,679 Mil. BYD Co's Interest Expense for the three months ended in Dec. 2023 was $-67 Mil. BYD Co's interest coverage for the quarter that ended in Dec. 2023 was 24.92. The higher the ratio, the stronger the company's financial strength is.

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

BYDDY' s Interest Coverage Range Over the Past 10 Years
Min: 1.03 Med: 3.77 Max: 21.02
Current: 21.02

BYDDY's Interest Coverage is ranked better than
72.65% of 1031 companies
in the Vehicles & Parts industry
Industry Median: 7.57 vs BYDDY: 21.02

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

BYD Co Interest Coverage Historical Data

The historical data trend for BYD Co'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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BYD Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.97

4.18

3.98

17.45

21.02

BYD Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																36.52	18.42	11.53	35.32	24.92

Competitive Comparison

For the Auto Manufacturers subindustry, BYD Co'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.

BYD Co Interest Coverage Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, BYD Co's Interest Coverage distribution charts can be found below:

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

BYD Co 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.

BYD Co'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, BYD Co's Interest Expense was $-256 Mil. Its Operating Income was $5,380 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,916 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	5379.791	/	-255.96
	=	21.02

BYD Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, BYD Co's Interest Expense was $-67 Mil. Its Operating Income was $1,679 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,916 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1678.672	/	-67.37
	=	24.92

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

BYD Co (OTCPK:BYDDY) 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 .

BYD Co Interest Coverage Related Terms

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

BYD Co (BYD Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » BYD Co Ltd (OTCPK:BYDDY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

BYDDF:USA 01211:Hong Kong 0VSO:UK BY6:Germany 002594:China BY6:Austria

Address

No. 3009, BYD Road, Pingshan, Guangdong Province, Shenzhen, CHN, 518118

Website

https://www.byd.com

Founded in 1995, BYD is a leading Chinese manufacturer in the design, development, and production of new energy vehicles, or NEVs. In March 2022, the firm discontinued production of internal combustion engine, or ICE, vehicles. Its products primarily target the growing midpriced mass-market segment in China's passenger vehicle market. The company sold more than 1.8 million passenger NEVs in 2022, accounting for about 28% of the Chinese passenger NEV market. Besides automobile production, the company is also engaged in handset components and assembly services, as well as the rechargeable battery and photovoltaics business. After more than 25 years of development, the company has established over 30 industrial parks worldwide.