Tunghsu Azure Renewable Energy Co (SZSE:000040) Interest Coverage : 1.32 (As of Sep. 2023)

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What is Tunghsu Azure Renewable Energy 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. Tunghsu Azure Renewable Energy Co's Operating Income for the three months ended in Sep. 2023 was ¥48 Mil. Tunghsu Azure Renewable Energy Co's Interest Expense for the three months ended in Sep. 2023 was ¥-36 Mil. Tunghsu Azure Renewable Energy Co's interest coverage for the quarter that ended in Sep. 2023 was 1.32. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Tunghsu Azure Renewable Energy Co Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Tunghsu Azure Renewable Energy Co's Interest Coverage or its related term are showing as below:

SZSE:000040' s Interest Coverage Range Over the Past 10 Years
Min: 0.37 Med: 1.43 Max: 7.02
Current: 0.8

SZSE:000040's Interest Coverage is ranked worse than
86.02% of 329 companies
in the Utilities - Independent Power Producers industry
Industry Median: 3.13 vs SZSE:000040: 0.80

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

Tunghsu Azure Renewable Energy Co Interest Coverage Historical Data

The historical data trend for Tunghsu Azure Renewable Energy 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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Tunghsu Azure Renewable Energy Co Interest Coverage Chart

Tunghsu Azure Renewable Energy Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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1.30

0.76

0.37

0.99

0.64

Tunghsu Azure Renewable Energy Co Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial															0.92	0.03	1.85	1.92	1.32

Competitive Comparison of Tunghsu Azure Renewable Energy Co's Interest Coverage

For the Utilities - Renewable subindustry, Tunghsu Azure Renewable Energy 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.

Tunghsu Azure Renewable Energy Co's Interest Coverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Tunghsu Azure Renewable Energy Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tunghsu Azure Renewable Energy Co's Interest Coverage falls into.

Tunghsu Azure Renewable Energy 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.

Tunghsu Azure Renewable Energy Co's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Tunghsu Azure Renewable Energy Co's Interest Expense was ¥-549 Mil. Its Operating Income was ¥352 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥3,637 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	352.092	/	-549.437
	=	0.64

Tunghsu Azure Renewable Energy Co's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Tunghsu Azure Renewable Energy Co's Interest Expense was ¥-36 Mil. Its Operating Income was ¥48 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥2,881 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	47.826	/	-36.215
	=	1.32

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

Tunghsu Azure Renewable Energy Co (SZSE:000040) 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 .

Tunghsu Azure Renewable Energy Co Interest Coverage Related Terms

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

Tunghsu Azure Renewable Energy Co (SZSE:000040) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Tunghsu Azure Renewable Energy Co Ltd (SZSE:000040) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

25-27th Floor Hongji Building, No 1011 Dong Men Zhong Road, Guangdong, Shenzhen, CHN, 518001

Website

http://www.dongxulantian.com

Tunghsu Azure Renewable Energy Co Ltd is engaged in the business of new energy and ecological protection. It offers smart energy with multi-complementary, integrated distribution, and cogeneration of cold and heat, through environmental protection. The company also provides a package of green development solution. Its business scope covers ecological comprehensive management, water environment restoration and operation, soil and mine restoration, and hazardous waste/solid waste treatment. In addition, it provides local governments with planning and design in the fields of infrastructure construction and eco-environmental protection, investment, construction, operations, management, and other life cycle solutions.

Executives

Chen Wei	Director
Li Dong Ming	Executives
You Ming Tian	Supervisors
Chen Han Zhong	Executives
Luo Wei Guang	Executives
Yan Jin Hui	Director
Qiu Sheng Kai	Executives
Huang Xu Hui	Executives
Deng Xue Qin	Director
Shen Shu Jiang	Executives
Lin Yin Fu	Supervisors
Zhou Ke Tian	Director

Tunghsu Azure Renewable Energy Co (SZSE:000040) Headlines

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