IMAX China Holding (HKSE:01970) Interest Coverage : 120.38 (As of Dec. 2023)

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What is IMAX China Holding 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. IMAX China Holding's Operating Income for the six months ended in Dec. 2023 was HK$122.2 Mil. IMAX China Holding's Interest Expense for the six months ended in Dec. 2023 was HK$-1.0 Mil. IMAX China Holding's interest coverage for the quarter that ended in Dec. 2023 was 120.38. 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. IMAX China Holding Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

HKSE:01970' s Interest Coverage Range Over the Past 10 Years
Min: 9.14 Med: 1786.22 Max: No Debt
Current: 79.77

HKSE:01970's Interest Coverage is ranked better than
74.16% of 627 companies
in the Media - Diversified industry
Industry Median: 11.49 vs HKSE:01970: 79.77

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

IMAX China Holding Interest Coverage Historical Data

The historical data trend for IMAX China Holding'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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IMAX China Holding Interest Coverage Chart

IMAX China Holding Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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585.03

9.14

96.07

123.24

79.80

IMAX China Holding 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															84.89	56.98	149.55	61.12	120.38

Competitive Comparison of IMAX China Holding's Interest Coverage

For the Entertainment subindustry, IMAX China Holding'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.

IMAX China Holding's Interest Coverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, IMAX China Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where IMAX China Holding's Interest Coverage falls into.

IMAX China Holding 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.

IMAX China Holding'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, IMAX China Holding's Interest Expense was HK$-3.2 Mil. Its Operating Income was HK$256.8 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$10.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	256.794	/	-3.218
	=	79.80

IMAX China Holding's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, IMAX China Holding's Interest Expense was HK$-1.0 Mil. Its Operating Income was HK$122.2 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$10.3 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	122.184	/	-1.015
	=	120.38

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

IMAX China Holding (HKSE:01970) 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 .

IMAX China Holding Interest Coverage Related Terms

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

IMAX China Holding (HKSE:01970) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » IMAX China Holding Inc (HKSE:01970) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

IMXCF:USA IMK:Germany

Address

No. 128 West Nanjing Road, 7th Floor, Verdant Place, Huangpu District, Shanghai, CHN, 200003

Website

http://www.imax.cn

IMAX China Holding Inc is an investment holding company that operates in the Entertainment industry in China. The company, a subsidiary of IMAX Corporation, creates and distributes proprietary cinema presentation technology. It operates in the following segments: IMAX Technology Network, which earns revenue based on contingent box office receipts and includes the IMAX DMR films segment and contingent rent from the revenue sharing arrangements segment; IMAX Technology Sales and Maintenance, which includes results from IMAX Systems, IMAX Maintenance, and Other Theatre Business, as well as upfront fees from the revenue sharing arrangements; and New Business Initiatives and Other, which includes activities related to the exploration of new lines of business.

Executives

Imax (barbados) Holdings, Inc.
Imax Corporation

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