Huzhou Gas Co (HKSE:06661) Interest Coverage : 64.75 (As of Dec. 2023)

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What is Huzhou Gas Co 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. Huzhou Gas Co's Operating Income for the six months ended in Dec. 2023 was HK$117 Mil. Huzhou Gas Co's Interest Expense for the six months ended in Dec. 2023 was HK$-2 Mil. Huzhou Gas Co's interest coverage for the quarter that ended in Dec. 2023 was 64.75. 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. Huzhou Gas Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Huzhou Gas Co's Interest Coverage or its related term are showing as below:

HKSE:06661' s Interest Coverage Range Over the Past 10 Years
Min: 54.47 Med: 172.59 Max: 745.86
Current: 54.47

HKSE:06661's Interest Coverage is not ranked
in the Utilities - Regulated industry.
Industry Median: 3.775 vs HKSE:06661: 54.47

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

Huzhou Gas Co Interest Coverage Historical Data

The historical data trend for Huzhou Gas 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.

* Premium members only.

Huzhou Gas Co Interest Coverage Chart

Huzhou Gas Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

745.86

714.17

172.59

57.89

54.47

Huzhou Gas Co Semi-Annual Data
	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial			83.75	132.94	40.46	45.57	64.75

Competitive Comparison of Huzhou Gas Co's Interest Coverage

For the Utilities - Regulated Gas subindustry, Huzhou Gas 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.

Huzhou Gas Co's Interest Coverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Huzhou Gas Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Huzhou Gas Co's Interest Coverage falls into.

Huzhou Gas 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.

Huzhou Gas Co'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, Huzhou Gas Co's Interest Expense was HK$-4 Mil. Its Operating Income was HK$212 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$21 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	212.417	/	-3.9
	=	54.47

Huzhou Gas Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Huzhou Gas Co's Interest Expense was HK$-2 Mil. Its Operating Income was HK$117 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$21 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	117.137	/	-1.809
	=	64.75

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

Huzhou Gas Co (HKSE:06661) 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 .

Huzhou Gas Co Interest Coverage Related Terms

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

Huzhou Gas Co (HKSE:06661) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Huzhou Gas Co Ltd (HKSE:06661) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

227 Sizhong Road, Zhejiang Province, Huzhou, CHN

Website

https://www.hzrqgf.com

Huzhou Gas Co Ltd is the largest piped natural gas distributor. The principal business of the company comprises of sale of gas, mainly PNG under the Concessions; provision of construction and installation services to construct and install end-user pipeline network and gas facilities for customers such as property developers and owners or occupants of residential and non-residential properties; and others, including sale of household gas appliances.

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