Smoore International Holdings (Smoore International Holdings) Interest Coverage : 57.45 (As of Dec. 2023)

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What is Smoore International 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. Smoore International Holdings's Operating Income for the six months ended in Dec. 2023 was $130.47 Mil. Smoore International Holdings's Interest Expense for the six months ended in Dec. 2023 was $-2.27 Mil. Smoore International Holdings's interest coverage for the quarter that ended in Dec. 2023 was 57.45. 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. Smoore International Holdings Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

SMHRY' s Interest Coverage Range Over the Past 10 Years
Min: 56.37 Med: 107.55 Max: 261.68
Current: 56.37

SMHRY's Interest Coverage is ranked better than
64.52% of 31 companies
in the Tobacco Products industry
Industry Median: 12.84 vs SMHRY: 56.37

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

Smoore International Holdings Interest Coverage Historical Data

The historical data trend for Smoore International 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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Smoore International Holdings Interest Coverage Chart

Smoore International Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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141.99

261.71

227.76

83.56

56.37

Smoore International Holdings Semi-Annual Data
	Dec16	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial								144.06	93.47	73.37	54.76	57.45

Competitive Comparison of Smoore International Holdings's Interest Coverage

For the Tobacco subindustry, Smoore International 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.

Smoore International Holdings's Interest Coverage Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Smoore International Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Smoore International Holdings's Interest Coverage falls into.

Smoore International 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.

Smoore International 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, Smoore International Holdings's Interest Expense was $-3.81 Mil. Its Operating Income was $214.66 Mil. And its Long-Term Debt & Capital Lease Obligation was $37.11 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	214.664	/	-3.808
	=	56.37

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

Here, for the six months ended in Dec. 2023, Smoore International Holdings's Interest Expense was $-2.27 Mil. Its Operating Income was $130.47 Mil. And its Long-Term Debt & Capital Lease Obligation was $37.11 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	130.472	/	-2.271
	=	57.45

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

Smoore International Holdings (OTCPK:SMHRY) 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 .

Smoore International Holdings Interest Coverage Related Terms

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

Smoore International Holdings (Smoore International Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Smoore International Holdings Ltd (OTCPK:SMHRY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SMORF:USA 06969:Hong Kong

Address

Gushu Community, Xixiang Street, No. 16, Dongcai Industrial Zone, Bao’an District, Guangdong, Shenzhen, CHN

Website

https://www.smooreholdings.com

Smoore International Holdings Ltd offers vaping technology solutions, including manufacturing vaping devices and vaping components for Heat-not-burn products. It operates in three segments namely research, design and manufacturing of closed-system vaping devices and vaping components for tobacco companies and independent vaping companies, and research, design, manufacturing, and sale of self-branded open-system vaping devices, or APV, for retail clients and new business such as atomization in medical treatment to provide patients with inhalation drug delivery products on a basis of atomization technology. The company generates maximum revenue from Vaping devices and components, other than APV.