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China United Network Communications (SHSE:600050) Interest Coverage : 22.20 (As of Mar. 2024)


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What is China United Network Communications 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 United Network Communications's Operating Income for the three months ended in Mar. 2024 was ¥9,621 Mil. China United Network Communications's Interest Expense for the three months ended in Mar. 2024 was ¥-433 Mil. China United Network Communications's interest coverage for the quarter that ended in Mar. 2024 was 22.20. The higher the ratio, the stronger the company's financial strength is.

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

SHSE:600050' s Interest Coverage Range Over the Past 10 Years
Min: 1.43   Med: 10.27   Max: 24.47
Current: 12.38


SHSE:600050's Interest Coverage is ranked better than
72.41% of 290 companies
in the Telecommunication Services industry
Industry Median: 4.56 vs SHSE:600050: 12.38

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 United Network Communications Interest Coverage Historical Data

The historical data trend for China United Network Communications'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.

* Premium members only.

China United Network Communications Interest Coverage Chart

China United Network Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.42 14.20 16.50 24.47 13.43

China United Network Communications Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 42.30 9.48 15.95 3.74 22.20

Competitive Comparison of China United Network Communications's Interest Coverage

For the Telecom Services subindustry, China United Network Communications'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 United Network Communications's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, China United Network Communications's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China United Network Communications's Interest Coverage falls into.



China United Network Communications 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 United Network Communications'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 United Network Communications's Interest Expense was ¥-1,846 Mil. Its Operating Income was ¥24,800 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥32,750 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*24799.67/-1846.123
=13.43

China United Network Communications's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, China United Network Communications's Interest Expense was ¥-433 Mil. Its Operating Income was ¥9,621 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥31,783 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*9621.17/-433.361
=22.20

* 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.

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


China United Network Communications  (SHSE:600050) 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 United Network Communications Interest Coverage Related Terms

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China United Network Communications (SHSE:600050) Business Description

Traded in Other Exchanges
N/A
Address
No. 21, Financial Street, 4th Floor, Xicheng District, Beijing, CHN, 100033
China United Network Communications Ltd is a Chinese telecom operator. It operates fixed and mobile communications service, domestic and international communications facilities, satellite IPLC service, data communications service, network access service, value-added telecom services and system integration service related to information and communications services. The Company provides its products to personal & residential customers, small & medium business, VIP customer and international customer.

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