Tianqi Lithium (HKSE:09696) Interest Coverage : 36.38 (As of Dec. 2023)

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What is Tianqi Lithium 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. Tianqi Lithium's Operating Income for the three months ended in Dec. 2023 was HK$5,781 Mil. Tianqi Lithium's Interest Expense for the three months ended in Dec. 2023 was HK$-159 Mil. Tianqi Lithium's interest coverage for the quarter that ended in Dec. 2023 was 36.38. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:09696' s Interest Coverage Range Over the Past 10 Years
Min: 0.5 Med: 2.84 Max: 61.62
Current: 30.14

HKSE:09696's Interest Coverage is ranked worse than
72.29% of 1339 companies
in the Metals & Mining industry
Industry Median: No Debt vs HKSE:09696: 30.14

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

Tianqi Lithium Interest Coverage Historical Data

The historical data trend for Tianqi Lithium'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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Tianqi Lithium Interest Coverage Chart

Tianqi Lithium Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.13

0.50

2.84

31.06

61.62

Tianqi Lithium Quarterly Data
	Dec19	Dec20	Mar21	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial								144.54	N/A	43.84	36.38	7.86

Competitive Comparison of Tianqi Lithium's Interest Coverage

For the Other Industrial Metals & Mining subindustry, Tianqi Lithium'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.

Tianqi Lithium's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Tianqi Lithium's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tianqi Lithium's Interest Coverage falls into.

Tianqi Lithium 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.

Tianqi Lithium'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, Tianqi Lithium's Interest Expense was HK$-602 Mil. Its Operating Income was HK$37,074 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$11,667 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	37074.473	/	-601.69
	=	61.62

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

Here, for the three months ended in Dec. 2023, Tianqi Lithium's Interest Expense was HK$-159 Mil. Its Operating Income was HK$5,781 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$11,667 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	5781.419	/	-158.917
	=	36.38

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

Tianqi Lithium (HKSE:09696) 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 .

Tianqi Lithium Interest Coverage Related Terms

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

Tianqi Lithium (HKSE:09696) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Tianqi Lithium Corp (HKSE:09696) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

2220:Germany

Address

No. 10 East Gaopeng Road, Building 1, Hi-Tech Zone, Sichuan, Chengdu, CHN

Website

http://www.tianqilithium.com

Tianqi Lithium is a leading new energy materials company headquartered in China. The company is the largest producer of mined lithium globally in terms of output and is ranked third in terms of revenue generated from lithium, according to Wood Mackenzie. It is also the world's fourth largest and Asia's second largest lithium compound producer, as measured by production output, according to the same source. Tianqi is the only lithium producer in China that has achieved 100% self-sufficiency and has fully vertically integrated lithium mines. It operates in critical stages of the lithium value chain, including: 1) mining of lithium ore and manufacturing of lithium concentrate; and 2) manufacturing of lithium compounds and derivatives.

Tianqi Lithium (HKSE:09696) Headlines

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