China Chengtong Development Group (FRA:CCO) Interest Coverage : 0.75 (As of Dec. 2023)

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What is China Chengtong Development Group 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 Chengtong Development Group's Operating Income for the six months ended in Dec. 2023 was €12.72 Mil. China Chengtong Development Group's Interest Expense for the six months ended in Dec. 2023 was €-16.94 Mil. China Chengtong Development Group's interest coverage for the quarter that ended in Dec. 2023 was 0.75. 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 Chengtong Development Group 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 China Chengtong Development Group's Interest Coverage or its related term are showing as below:

FRA:CCO' s Interest Coverage Range Over the Past 10 Years
Min: 0.64 Med: 1.09 Max: 7.11
Current: 0.64

FRA:CCO's Interest Coverage is ranked worse than
93.74% of 463 companies
in the Steel industry
Industry Median: 5.62 vs FRA:CCO: 0.64

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 Chengtong Development Group Interest Coverage Historical Data

The historical data trend for China Chengtong Development 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 Chengtong Development Group Interest Coverage Chart

China Chengtong Development Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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7.02

7.11

2.32

0.73

0.64

China Chengtong Development Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															1.35	0.48	0.94	0.52	0.75

Competitive Comparison of China Chengtong Development Group's Interest Coverage

For the Steel subindustry, China Chengtong Development 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 Chengtong Development Group's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, China Chengtong Development Group's Interest Coverage distribution charts can be found below:

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

China Chengtong Development 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 Chengtong Development Group'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 Chengtong Development Group's Interest Expense was €-33.88 Mil. Its Operating Income was €21.59 Mil. And its Long-Term Debt & Capital Lease Obligation was €203.42 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	21.589	/	-33.883
	=	0.64

China Chengtong Development Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, China Chengtong Development Group's Interest Expense was €-16.94 Mil. Its Operating Income was €12.72 Mil. And its Long-Term Debt & Capital Lease Obligation was €203.42 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	12.72	/	-16.941
	=	0.75

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

China Chengtong Development Group (FRA:CCO) 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 Chengtong Development Group Interest Coverage Related Terms

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

China Chengtong Development Group (FRA:CCO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » China Chengtong Development Group Ltd (FRA:CCO) » Definitions » Interest Coverage

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Traded in Other Exchanges

00217:Hong Kong

Address

18 Harbour Road, Suite 6406, 64th Floor, Central Plaza, Wanchai, Hong Kong, HKG

Website

http://www.hk217.com

China Chengtong Development Group is an investment holding company and has its operations divided into five business segments: property development, property investment, finance leasing, bulk commodity trade, and marine recreation services and hotel. The property development segment holds land for property development projects. The property investment segment offers rental services and holds investment properties for appreciation. The finance leasing segment offers finance leasing services, such as arranging sales and leaseback transactions. The bulk commodity trade segment, which generates the vast majority of the company's revenue, includes the trading of coal, steel, and nonferrous metal. The company earns its revenue in the People's Republic of China.