CSSC (Hong Kong) Shipping Co (HKSE:03877) Interest Coverage : 2.04 (As of Dec. 2023)

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What is CSSC (Hong Kong) Shipping 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. CSSC (Hong Kong) Shipping Co's Operating Income for the six months ended in Dec. 2023 was HK$1,306 Mil. CSSC (Hong Kong) Shipping Co's Interest Expense for the six months ended in Dec. 2023 was HK$-641 Mil. CSSC (Hong Kong) Shipping Co's interest coverage for the quarter that ended in Dec. 2023 was 2.04. 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. CSSC (Hong Kong) Shipping Co Ltd interest coverage is 2.35, which is low.

The historical rank and industry rank for CSSC (Hong Kong) Shipping Co's Interest Coverage or its related term are showing as below:

HKSE:03877' s Interest Coverage Range Over the Past 10 Years
Min: 1.05 Med: 2.2 Max: 3.58
Current: 2.35

HKSE:03877's Interest Coverage is ranked worse than
84.47% of 792 companies
in the Business Services industry
Industry Median: 13.34 vs HKSE:03877: 2.35

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

CSSC (Hong Kong) Shipping Co Interest Coverage Historical Data

The historical data trend for CSSC (Hong Kong) Shipping 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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CSSC (Hong Kong) Shipping Co Interest Coverage Chart

CSSC (Hong Kong) Shipping Co Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.05

2.40

3.58

2.81

2.35

CSSC (Hong Kong) Shipping Co Semi-Annual Data
	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial									3.30	3.01	2.64	2.79	2.04

Competitive Comparison of CSSC (Hong Kong) Shipping Co's Interest Coverage

For the Rental & Leasing Services subindustry, CSSC (Hong Kong) Shipping 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.

CSSC (Hong Kong) Shipping Co's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, CSSC (Hong Kong) Shipping Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where CSSC (Hong Kong) Shipping Co's Interest Coverage falls into.

CSSC (Hong Kong) Shipping 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.

CSSC (Hong Kong) Shipping 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, CSSC (Hong Kong) Shipping Co's Interest Expense was HK$-1,102 Mil. Its Operating Income was HK$2,593 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$31,357 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2592.565	/	-1101.767
	=	2.35

CSSC (Hong Kong) Shipping Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, CSSC (Hong Kong) Shipping Co's Interest Expense was HK$-641 Mil. Its Operating Income was HK$1,306 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$31,357 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1306.141	/	-641.233
	=	2.04

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

CSSC (Hong Kong) Shipping Co (HKSE:03877) 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 .

CSSC (Hong Kong) Shipping Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of CSSC (Hong Kong) Shipping Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

CSSC (Hong Kong) Shipping Co (HKSE:03877) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » CSSC (Hong Kong) Shipping Co Ltd (HKSE:03877) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

3LL:Germany

Address

19 Des Voeux Road Central, Room 1801, 18th Floor, World-wide House, Hong Kong, HKG

Website

https://www.csscshipping.cn

CSSC (Hong Kong) Shipping Co Ltd is a shipyard-affiliated leasing company in Greater China. As a player in the ship leasing industry, it offers customized ship leasing solutions that suit customers' different needs. The core business of the group is the provision of leasing services, which include finance leases and operating leases. It operates through the below segments: Leasing services, Shipbroking services, and Loan borrowings. The Leasing services segment that derives the majority of revenue provides Leasing services.

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