China Vanke Co (SZSE:000002) Interest Coverage : 3.23 (As of Dec. 2023)

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What is China Vanke 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 Vanke Co's Operating Income for the three months ended in Dec. 2023 was ¥5,273 Mil. China Vanke Co's Interest Expense for the three months ended in Dec. 2023 was ¥-1,634 Mil. China Vanke Co's interest coverage for the quarter that ended in Dec. 2023 was 3.23. The higher the ratio, the stronger the company's financial strength is.

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

SZSE:000002' s Interest Coverage Range Over the Past 10 Years
Min: 5.89 Med: 8.66 Max: 17.16
Current: 5.89

SZSE:000002's Interest Coverage is ranked better than
58.37% of 1350 companies
in the Real Estate industry
Industry Median: 3.97 vs SZSE:000002: 5.89

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 Vanke Co Interest Coverage Historical Data

The historical data trend for China Vanke 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 Vanke Co Interest Coverage Chart

China Vanke Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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8.57

8.42

6.88

8.74

5.89

China Vanke Co 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															9.25	2.83	11.30	7.11	3.23

Competitive Comparison of China Vanke Co's Interest Coverage

For the Real Estate - Development subindustry, China Vanke 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 Vanke Co's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, China Vanke Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Vanke Co's Interest Coverage falls into.

China Vanke 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 Vanke 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 Vanke Co's Interest Expense was ¥-5,737 Mil. Its Operating Income was ¥33,796 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥277,280 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	33795.556	/	-5737.473
	=	5.89

China Vanke Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, China Vanke Co's Interest Expense was ¥-1,634 Mil. Its Operating Income was ¥5,273 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥277,280 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	5273.328	/	-1634.062
	=	3.23

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

China Vanke Co (SZSE:000002) 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 Vanke Co Interest Coverage Related Terms

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

China Vanke Co (SZSE:000002) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » China Vanke Co Ltd (SZSE:000002) » Definitions » Interest Coverage

Traded in Other Exchanges

CHVKF:USA CHVKY:USA 02202:Hong Kong 18V:Germany

Address

Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen, CHN, 518083

Website

https://www.vanke.com

China Vanke is a large real estate developer in China with residential property sales among the top three of all peers through the past five years. While property development accounts for most of its revenue and earnings, it has expanded its business presence in investment properties such as commercial retail complexes, long-term leasing apartments, and leasable logistical assets. China Vanke also owns an over-60% equity interest in its property management division Onewo, which manages the second-largest gross floor area in China. It is dual-listed in Shenzhen and Hong Kong, and state-owned Shenzhen Metro is the largest shareholder with a 27.2% stake.

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