GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Hello Group Inc (WBO:MOMO) » Definitions » Interest Coverage

Hello Group (WBO:MOMO) Interest Coverage : 29.30 (As of Dec. 2023)


View and export this data going back to 2018. Start your Free Trial

What is Hello Group 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. Hello Group's Operating Income for the three months ended in Dec. 2023 was €77 Mil. Hello Group's Interest Expense for the three months ended in Dec. 2023 was €-3 Mil. Hello Group's interest coverage for the quarter that ended in Dec. 2023 was 29.30. The higher the ratio, the stronger the company's financial strength is.

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

WBO:MOMO' s Interest Coverage Range Over the Past 10 Years
Min: 19.49   Med: 51.52   Max: No Debt
Current: 37.1


WBO:MOMO's Interest Coverage is ranked worse than
50.98% of 306 companies
in the Interactive Media industry
Industry Median: 38.9 vs WBO:MOMO: 37.10

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


Hello Group Interest Coverage Historical Data

The historical data trend for Hello Group'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.

Hello Group Interest Coverage Chart

Hello Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 45.22 32.10 27.21 19.49 37.05

Hello Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.36 41.87 53.92 32.23 29.30

Competitive Comparison of Hello Group's Interest Coverage

For the Internet Content & Information subindustry, Hello Group'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.


Hello Group's Interest Coverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Hello Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hello Group's Interest Coverage falls into.



Hello Group 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.

Hello Group'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, Hello Group's Interest Expense was €-8 Mil. Its Operating Income was €296 Mil. And its Long-Term Debt & Capital Lease Obligation was €258 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*296.028/-7.991
=37.05

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

Here, for the three months ended in Dec. 2023, Hello Group's Interest Expense was €-3 Mil. Its Operating Income was €77 Mil. And its Long-Term Debt & Capital Lease Obligation was €258 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*77.313/-2.639
=29.30

* 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.

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


Hello Group  (WBO:MOMO) 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 .


Hello Group Interest Coverage Related Terms

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


Hello Group (WBO:MOMO) Business Description

Traded in Other Exchanges
Address
No. 1 Futongdong Street, 20th Floor, Block B, Tower 2, Wangjing SOHO, Chaoyang District, Beijing, CHN, 100102
Hello Group Inc provides mobile-based social networking services. It enables users to establish and expand social relationships based on location and interests. Its platform includes the Momo mobile application and a variety of related features, functionalities, tools, and services that it provides to users, customers, and platform partners. The company derives its revenue from live video services, value-added services, mobile marketing services, mobile games, and other services. It operates in three segments: Momo's service lines, Tantan's service lines, and QOOL's service lines out of which Momo's service lines segment derives the majority of revenue.