Smart-Core Holdings (HKSE:02166) Interest Coverage : 2.92 (As of Dec. 2023)

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What is Smart-Core Holdings 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. Smart-Core Holdings's Operating Income for the six months ended in Dec. 2023 was HK$74 Mil. Smart-Core Holdings's Interest Expense for the six months ended in Dec. 2023 was HK$-25 Mil. Smart-Core Holdings's interest coverage for the quarter that ended in Dec. 2023 was 2.92. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Smart-Core Holdings's Interest Coverage or its related term are showing as below:

HKSE:02166' s Interest Coverage Range Over the Past 10 Years
Min: 2.15 Med: 5.53 Max: 10.27
Current: 2.15

HKSE:02166's Interest Coverage is ranked worse than
86.54% of 1568 companies
in the Hardware industry
Industry Median: 12.79 vs HKSE:02166: 2.15

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

Smart-Core Holdings Interest Coverage Historical Data

The historical data trend for Smart-Core Holdings'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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Smart-Core Holdings Interest Coverage Chart

Smart-Core Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3.46

6.56

9.98

6.73

2.15

Smart-Core Holdings Semi-Annual Data
	Dec13	Dec14	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial														9.37	11.07	3.16	1.52	2.92

Competitive Comparison of Smart-Core Holdings's Interest Coverage

For the Electronics & Computer Distribution subindustry, Smart-Core Holdings'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.

Smart-Core Holdings's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Smart-Core Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Smart-Core Holdings's Interest Coverage falls into.

Smart-Core Holdings 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.

Smart-Core Holdings'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, Smart-Core Holdings's Interest Expense was HK$-57 Mil. Its Operating Income was HK$122 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	122.426	/	-57.032
	=	2.15

Smart-Core Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Smart-Core Holdings's Interest Expense was HK$-25 Mil. Its Operating Income was HK$74 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	74.473	/	-25.478
	=	2.92

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

Smart-Core Holdings (HKSE:02166) 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 .

Smart-Core Holdings Interest Coverage Related Terms

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

Smart-Core Holdings (HKSE:02166) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Smart-Core Holdings Ltd (HKSE:02166) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

70 Ta Chuen Ping Street, 15th Floor, Tower B, Regent Centre, Kwai Chung, New Territories, Hong Kong, HKG

Website

https://www.smart-core.com.hk

Smart-Core Holdings Ltd is a distributor of integrated circuit and other electronic components and technology value-added service provider covering multiple market segments such as televisions (TV), optoelectronic displays, smart terminals, memory, security monitoring, communication products, Internet of Things (IoT), optical communications. Its service networks cover majority regions in Mainland China and Southeast Asia, providing diversified supply chain services of semiconductor chips and various electronic components for customers in the electronics industry, as well as corresponding technical solutions, technical support and software services. Its segments include Authorised distribution and Independent distribution.

Executives

Insight Limited	2101 Beneficial owner
Liu Hongbing	2101 Beneficial owner
Wong Tsz Leung	2201 Interest of corporation controlled by you
Smart Ic Limited
Tian Weidong

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