Xinyuan Real Estate Co (Xinyuan Real Estate Co) Interest Coverage

: 0.64 (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. Xinyuan Real Estate Co's Operating Income for the six months ended in Jun. 2023 was $54.7 Mil. Xinyuan Real Estate Co's Interest Expense for the six months ended in Jun. 2023 was $-85.3 Mil. Xinyuan Real Estate Co's interest coverage for the quarter that ended in Jun. 2023 was 0.64. 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. Xinyuan Real Estate Co Ltds 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 Xinyuan Real Estate Co's Interest Coverage or its related term are showing as below:

XIN' s Interest Coverage Range Over the Past 10 Years
Min: 0.15 Med: 4.07 Max: 13.18
Current: 0.15

XIN's Interest Coverage is ranked worse than
97.86% of 1352 companies
in the Real Estate industry
Industry Median: 3.995 vs XIN: 0.15

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

Xinyuan Real Estate Co Interest Coverage Historical Data

The historical data trend for Xinyuan Real Estate 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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Xinyuan Real Estate Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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4.14

2.93

0.55

Xinyuan Real Estate Co 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	Get a 7-Day Free Trial															-	-	-	-	0.64

Competitive Comparison

For the Real Estate - Development subindustry, Xinyuan Real Estate 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.

Xinyuan Real Estate Co Interest Coverage Distribution

For the Real Estate industry and Real Estate sector, Xinyuan Real Estate Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Xinyuan Real Estate Co's Interest Coverage falls into.

Xinyuan Real Estate 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.

Xinyuan Real Estate Co'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, Xinyuan Real Estate Co's Interest Expense was $-157.8 Mil. Its Operating Income was $-53.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $409.0 Mil.

Xinyuan Real Estate Co did not have earnings to cover the interest expense.

Xinyuan Real Estate Co's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the six months ended in Jun. 2023, Xinyuan Real Estate Co's Interest Expense was $-85.3 Mil. Its Operating Income was $54.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $517.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	54.695	/	-85.29
	=	0.64

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

Xinyuan Real Estate Co (NYSE:XIN) 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 .

Xinyuan Real Estate Co Interest Coverage Related Terms

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Xinyuan Real Estate Co (Xinyuan Real Estate Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Xinyuan Real Estate Co Ltd (NYSE:XIN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

3XR:Germany

Address

79 Jianguo Road, 27th Floor, China Central Place, Tower II, Chaoyang District, Beijing, CHN, 100025

Website

http://www.xyre.com

Xinyuan Real Estate Co Ltd operates as a real estate developer and property manager in China. It develops and manages large-scale, high-quality real estate projects in over ten tier one and tier two cities, including Beijing, Shanghai, Zhengzhou, Suzhou, among others. It aims to provide comfortable and convenient real estate-related products and services to middle-class consumers. Xinyuan's product portfolio consists of multiple-rise buildings, sub-high-rise buildings, and high-rise buildings, together with auxiliary services and amenities such as retail outlets, leisure and health facilities, kindergartens and schools. In addition, the company provides property management services for its projects and other real estate-related services to its customers.