Contemporary Amperex Technology Co (SZSE:300750) Interest Coverage : 13.04 (As of Mar. 2024)

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What is Contemporary Amperex Technology 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. Contemporary Amperex Technology Co's Operating Income for the three months ended in Mar. 2024 was ¥13,673 Mil. Contemporary Amperex Technology Co's Interest Expense for the three months ended in Mar. 2024 was ¥-1,048 Mil. Contemporary Amperex Technology Co's interest coverage for the quarter that ended in Mar. 2024 was 13.04. The higher the ratio, the stronger the company's financial strength is.

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

SZSE:300750' s Interest Coverage Range Over the Past 10 Years
Min: 1.12 Med: 16.85 Max: 56.8
Current: 14.4

SZSE:300750's Interest Coverage is ranked better than
51.35% of 2298 companies
in the Industrial Products industry
Industry Median: 13.69 vs SZSE:300750: 14.40

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

Contemporary Amperex Technology Co Interest Coverage Historical Data

The historical data trend for Contemporary Amperex Technology 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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Contemporary Amperex Technology Co Interest Coverage Chart

Contemporary Amperex Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

23.16

11.33

17.24

16.45

14.99

Contemporary Amperex Technology 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															15.27	15.40	15.70	13.98	13.04

Competitive Comparison of Contemporary Amperex Technology Co's Interest Coverage

For the Electrical Equipment & Parts subindustry, Contemporary Amperex Technology 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.

Contemporary Amperex Technology Co's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Contemporary Amperex Technology Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Contemporary Amperex Technology Co's Interest Coverage falls into.

Contemporary Amperex Technology 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.

Contemporary Amperex Technology 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, Contemporary Amperex Technology Co's Interest Expense was ¥-3,447 Mil. Its Operating Income was ¥51,646 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥102,969 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	51646.118	/	-3446.516
	=	14.99

Contemporary Amperex Technology Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Contemporary Amperex Technology Co's Interest Expense was ¥-1,048 Mil. Its Operating Income was ¥13,673 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥108,015 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	13673.088	/	-1048.365
	=	13.04

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

Contemporary Amperex Technology Co (SZSE:300750) 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 .

Contemporary Amperex Technology Co Interest Coverage Related Terms

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

Contemporary Amperex Technology Co (SZSE:300750) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Contemporary Amperex Technology Co Ltd (SZSE:300750) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

No. 2, Xingang Road, Liwan Town, Jiaocheng District, Fujian Province, Ningde City, CHN, 352100

Website

http://www.catlbattery.com

CATL, headquartered in Ningde, Fujian Province, is a global leading Chinese battery manufacturer founded in 2011. The company specializes in the development and production of lithium-ion batteries for EVs and energy storage systems. CATL is the largest EV battery manufacturer in the world and leads the industry in innovative battery technology development for higher-energy density and safety, longer battery service life and super-fast charging. CATL is also involved in the manufacturing of cathode and other related battery materials. Through its subsidiary Brunp, it works with customers to create a closed-loop battery life cycle from production, application, to recycling.

Executives

Huang Shi Lin	Directors, executives
Zheng Shu	Executives
Tan Li Bin	Executives

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