Edensoft Holdings (HKSE:01147) Interest Coverage : 6.58 (As of Dec. 2023)

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What is Edensoft 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. Edensoft Holdings's Operating Income for the six months ended in Dec. 2023 was HK$6.5 Mil. Edensoft Holdings's Interest Expense for the six months ended in Dec. 2023 was HK$-1.0 Mil. Edensoft Holdings's interest coverage for the quarter that ended in Dec. 2023 was 6.58. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:01147' s Interest Coverage Range Over the Past 10 Years
Min: 7.09 Med: 28.94 Max: 68.04
Current: 7.09

HKSE:01147's Interest Coverage is ranked worse than
72.48% of 1606 companies
in the Software industry
Industry Median: 28.9 vs HKSE:01147: 7.09

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

Edensoft Holdings Interest Coverage Historical Data

The historical data trend for Edensoft 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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Edensoft Holdings Interest Coverage Chart

Edensoft Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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12.02

46.81

68.04

7.09

Edensoft 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								26.38	10.57	-	7.43	6.58

Competitive Comparison of Edensoft Holdings's Interest Coverage

For the Information Technology Services subindustry, Edensoft 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.

Edensoft Holdings's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Edensoft Holdings's Interest Coverage distribution charts can be found below:

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

Edensoft 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.

Edensoft 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, Edensoft Holdings's Interest Expense was HK$-2.5 Mil. Its Operating Income was HK$17.4 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$4.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	17.447	/	-2.461
	=	7.09

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

Here, for the six months ended in Dec. 2023, Edensoft Holdings's Interest Expense was HK$-1.0 Mil. Its Operating Income was HK$6.5 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$4.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	6.465	/	-0.983
	=	6.58

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

Edensoft Holdings (HKSE:01147) 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 .

Edensoft Holdings Interest Coverage Related Terms

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

Edensoft Holdings (HKSE:01147) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Edensoft Holdings Ltd (HKSE:01147) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Hua Fu Street, 1006 Shennan Road, West, 2nd Floor, Building A, Futian Technology Square, Shenzhen International Innovation Center, Futian District, Shenzhen, CHN

Website

https://www.edensoft.com.cn

Edensoft Holdings Ltd is engaged in provision of IT infrastructure services, IT implementation and supporting services and cloud services in the PRC. Its segment includes IT infrastructure services; IT implementation and supporting services; and Cloud services. It derives key revenue from the IT infrastructure services segment that assess customers' needs and their existing IT environment and providing IT infrastructure services by advising them on the suitable hardware and software products that their IT environment would require, and procuring the relevant hardware and software products from IT products vendors and installing these IT products in customers' IT environment. It operates in Mainland China and Hong Kong, of which prime revenue is derived from Mainland China.

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