China Automotive Engineering Research Institute Co (SHSE:601965) Interest Coverage : 58.91 (As of Mar. 2024)

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What is China Automotive Engineering Research Institute 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. China Automotive Engineering Research Institute Co's Operating Income for the three months ended in Mar. 2024 was ¥210 Mil. China Automotive Engineering Research Institute Co's Interest Expense for the three months ended in Mar. 2024 was ¥-4 Mil. China Automotive Engineering Research Institute Co's interest coverage for the quarter that ended in Mar. 2024 was 58.91. 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. China Automotive Engineering Research Institute Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for China Automotive Engineering Research Institute Co's Interest Coverage or its related term are showing as below:

SHSE:601965' s Interest Coverage Range Over the Past 10 Years
Min: 172.17 Med: 2005.89 Max: 3669.92
Current: 172.17

SHSE:601965's Interest Coverage is ranked better than
91.86% of 1032 companies
in the Vehicles & Parts industry
Industry Median: 7.78 vs SHSE:601965: 172.17

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 Automotive Engineering Research Institute Co Interest Coverage Historical Data

The historical data trend for China Automotive Engineering Research Institute 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.

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China Automotive Engineering Research Institute Co Interest Coverage Chart

China Automotive Engineering Research Institute Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3,669.92

3,482.04

975.19

626.96

412.65

China Automotive Engineering Research Institute Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															1,593.04	408.12	686.29	231.29	58.91

Competitive Comparison of China Automotive Engineering Research Institute Co's Interest Coverage

For the Auto Manufacturers subindustry, China Automotive Engineering Research Institute 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.

China Automotive Engineering Research Institute Co's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Engineering Research Institute Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Automotive Engineering Research Institute Co's Interest Coverage falls into.

China Automotive Engineering Research Institute 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.

China Automotive Engineering Research Institute 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, China Automotive Engineering Research Institute Co's Interest Expense was ¥-2 Mil. Its Operating Income was ¥958 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥39 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	958.173	/	-2.322
	=	412.65

China Automotive Engineering Research Institute Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, China Automotive Engineering Research Institute Co's Interest Expense was ¥-4 Mil. Its Operating Income was ¥210 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥220 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	209.914	/	-3.563
	=	58.91

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

China Automotive Engineering Research Institute Co (SHSE:601965) 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 Automotive Engineering Research Institute Co Interest Coverage Related Terms

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China Automotive Engineering Research Institute Co (SHSE:601965) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » China Automotive Engineering Research Institute Co Ltd (SHSE:601965) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.9, Jin Yu Avenue, North District, Economic Development Zone, Chongqing, CHN

Website

http://www.caeri.com.cn

China Automotive Engineering Research Institute Co Ltd is an automobile company based in China. It is mainly engaged in the technical service for automobile and manufacturing operations of automobile including the development of various products, the technical consulting, test and the quality inspection and authentication. In addition, the company is specialized in research and development, manufacturing and marketing of special vehicles, with main products involving 5 types and 200-odd models including engineering dump trucks, concrete mixers, sanitation vehicles, logistics transport vehicles and integration vehicles.

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