Ping An Insurance (Group) Co. of China (Ping An Insurance (Group) Co. of China) Interest Coverage : 1.34 (As of Mar. 2024)

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What is Ping An Insurance (Group) Co. of China 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 EBIT by its Interest Expense. Ping An Insurance (Group) Co. of China's EBIT for the three months ended in Mar. 2024 was $28,816 Mil. Ping An Insurance (Group) Co. of China's Interest Expense for the three months ended in Mar. 2024 was $-21,509 Mil. Ping An Insurance (Group) Co. of China's interest coverage for the quarter that ended in Mar. 2024 was 1.34. 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. Ping An Insurance (Group) Co. of China Ltd interest coverage is 1.2, which is low.

The historical rank and industry rank for Ping An Insurance (Group) Co. of China's Interest Coverage or its related term are showing as below:

PIAIF' s Interest Coverage Range Over the Past 10 Years
Min: 1.2 Med: 8.1 Max: 13.07
Current: 1.2

PIAIF's Interest Coverage is ranked worse than
93.17% of 322 companies
in the Insurance industry
Industry Median: 13.355 vs PIAIF: 1.20

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

Ping An Insurance (Group) Co. of China Interest Coverage Historical Data

The historical data trend for Ping An Insurance (Group) Co. of China'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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Ping An Insurance (Group) Co. of China Interest Coverage Chart

Ping An Insurance (Group) Co. of China Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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10.19

8.10

5.97

1.26

1.20

Ping An Insurance (Group) Co. of China 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															1.36	1.28	1.16	1.00	1.34

Competitive Comparison of Ping An Insurance (Group) Co. of China's Interest Coverage

For the Insurance - Life subindustry, Ping An Insurance (Group) Co. of China'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.

Ping An Insurance (Group) Co. of China's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Ping An Insurance (Group) Co. of China's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ping An Insurance (Group) Co. of China's Interest Coverage falls into.

Ping An Insurance (Group) Co. of China 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 EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT 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.

Ping An Insurance (Group) Co. of China'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, Ping An Insurance (Group) Co. of China's Interest Expense was $-82,865 Mil. Its EBIT was $99,688 Mil. And its Long-Term Debt & Capital Lease Obligation was $195,343 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	99687.544	/	-82864.906
	=	1.20

Ping An Insurance (Group) Co. of China's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Ping An Insurance (Group) Co. of China's Interest Expense was $-21,509 Mil. Its EBIT was $28,816 Mil. And its Long-Term Debt & Capital Lease Obligation was $193,872 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	28815.663	/	-21509.269
	=	1.34

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

Ping An Insurance (Group) Co. of China (OTCPK:PIAIF) 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 .

Ping An Insurance (Group) Co. of China Interest Coverage Related Terms

Thank you for viewing the detailed overview of Ping An Insurance (Group) Co. of China's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Ping An Insurance (Group) Co. of China (Ping An Insurance (Group) Co. of China) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Ping An Insurance (Group) Co. of China Ltd (OTCPK:PIAIF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PNGAY:USA 02318:Hong Kong PZX:Germany 601318:China PZX:Austria

Address

No. 5033 Yitian Road, Ping An Finance Center, 47th, 48th, 109th, 110th, 111th and 112th Floors, Futian District, Guangdong Province, Shenzhen, CHN, 518033

Website

https://www.pingan.cn

Founded in 1988, Ping An Insurance is an integrated financial service provider headquartered in Shenzhen. The company has a focus on the offerings of healthcare services and integrated financial products. Ping An is China's second-largest life and P&C insurer. The company strives for an integrated financial services platform comprising life insurance, P&C insurance, banking, other financial services, and technology. These business segments contributed 65%, 5%, 26%, 2%, and 4% of the company's operating profits, respectively, in 2022.