China Evergrande Group (China Evergrande Group) Interest Coverage

: 0.05 (As of Jun. 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. China Evergrande Group's Operating Income for the six months ended in Jun. 2023 was $100 Mil. China Evergrande Group's Interest Expense for the six months ended in Jun. 2023 was $-1,881 Mil. China Evergrande Group's interest coverage for the quarter that ended in Jun. 2023 was 0.05. 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 Evergrande Groups earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

EGRNY' s Interest Coverage Range Over the Past 10 Years
Min: 0.06 Med: 8.05 Max: 1186.56
Current: 0.81

EGRNY's Interest Coverage is ranked worse than
89.11% of 1350 companies
in the Real Estate industry
Industry Median: 3.985 vs EGRNY: 0.81

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 Evergrande Group Interest Coverage Historical Data

The historical data trend for China Evergrande Group'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 Evergrande Group Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

16.67

4.84

5.25

0.06

China Evergrande Group Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Interest Coverage																-	-	-	-	0.05

Competitive Comparison

For the Real Estate - Development subindustry, China Evergrande Group'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 Evergrande Group Interest Coverage Distribution

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

* The bar in red indicates where China Evergrande Group's Interest Coverage falls into.

China Evergrande Group 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 Evergrande Group's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, China Evergrande Group's Interest Expense was $-4,902 Mil. Its Operating Income was $303 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,624 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	302.509	/	-4901.817
	=	0.06

China Evergrande Group's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the six months ended in Jun. 2023, China Evergrande Group's Interest Expense was $-1,881 Mil. Its Operating Income was $100 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,048 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	99.98	/	-1881.476
	=	0.05

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

China Evergrande Group (OTCPK:EGRNY) 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 Evergrande Group Interest Coverage Related Terms

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China Evergrande Group (China Evergrande Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » China Evergrande Group (OTCPK:EGRNY) » Definitions » Interest Coverage

Traded in Other Exchanges

EGRNQ:USA 03333:Hong Kong EV1:Germany

Address

Number. 78 Huangpu Avenue West, Tianhe District, Guangdong Province, Guangzhou, CHN, 510620

Website

https://www.evergrande.com

China Evergrande Group is a large real estate developer. In 2019, it was ranked in third place by sales value among developers in China. It has projects in more than 200 cities across China and property development accounts for 90% of earnings. The firm also has interests in banking, insurance, tourism, and healthcare. Evergrande was listed in Hong Kong in late 2009. The company is in the process of spinning off its real estate business into a Shenzhen-listed entity. Free float is 25%, with the company's founder Hui Ka Yan holding the remaining share.