Zhengwei Group Holdings Co (HKSE:02147) Interest Coverage : 29.55 (As of Dec. 2023)

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What is Zhengwei Group Holdings 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. Zhengwei Group Holdings Co's Operating Income for the six months ended in Dec. 2023 was HK$52.9 Mil. Zhengwei Group Holdings Co's Interest Expense for the six months ended in Dec. 2023 was HK$-1.8 Mil. Zhengwei Group Holdings Co's interest coverage for the quarter that ended in Dec. 2023 was 29.55. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:02147' s Interest Coverage Range Over the Past 10 Years
Min: 7.61 Med: 10.26 Max: 28.8
Current: 28.8

HKSE:02147's Interest Coverage is ranked better than
71.59% of 1380 companies
in the Consumer Packaged Goods industry
Industry Median: 8.625 vs HKSE:02147: 28.80

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

Zhengwei Group Holdings Co Interest Coverage Historical Data

The historical data trend for Zhengwei Group Holdings 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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Zhengwei Group Holdings Co Interest Coverage Chart

Zhengwei Group Holdings Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

8.23

7.61

10.26

19.81

28.80

Zhengwei Group Holdings Co Semi-Annual Data
	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial			13.90	13.22	28.08	27.83	29.55

Competitive Comparison of Zhengwei Group Holdings Co's Interest Coverage

For the Packaged Foods subindustry, Zhengwei Group Holdings 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.

Zhengwei Group Holdings Co's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Zhengwei Group Holdings Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Zhengwei Group Holdings Co's Interest Coverage falls into.

Zhengwei Group Holdings 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.

Zhengwei Group Holdings 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, Zhengwei Group Holdings Co's Interest Expense was HK$-3.2 Mil. Its Operating Income was HK$91.5 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	91.479	/	-3.176
	=	28.80

Zhengwei Group Holdings Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Zhengwei Group Holdings Co's Interest Expense was HK$-1.8 Mil. Its Operating Income was HK$52.9 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	52.873	/	-1.789
	=	29.55

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

Zhengwei Group Holdings Co (HKSE:02147) 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 .

Zhengwei Group Holdings Co Interest Coverage Related Terms

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

Zhengwei Group Holdings Co (HKSE:02147) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Zhengwei Group Holdings Co Ltd (HKSE:02147) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

487 Yuhu Road, Xiaolan Economic Development Zone, Nanchang, CHN

Website

https://www.zhengwei100.com

Zhengwei Group Holdings Co Ltd produces dry food and snacks, and secondarily trades related products. It produces and sells a variety of snacks (including ready-to-eat vegetarian snacks and meat snacks), such as crispy bamboo shoots and roast necks; and packaged dry goods such as mushrooms, dried aquatic products, seaweed, grains, and seasonings in China. The majority of revenue is derived from the Snacks segment. It has two operating segments Manufacturing & trading, out of which the majority is from the manufacturing segment. Geographically, the majority is from PRC.

Executives

Lin Qiu Yun	2101 Beneficial owner
Yang Shengyao	2201 Interest of corporation controlled by you
Shengyao Investment Group Limited	2101 Beneficial owner
Nan Chang Xian Wen Hua Lv You Tou Zi You Xian Gong Si	2101 Beneficial owner
Nan Chang Xian Ke Ji He Gong Ye Xun Xi Hua Ju	2201 Interest of corporation controlled by you
Lin Qiuyun	2201 Interest of corporation controlled by you
Trendy Peak International Limited	2101 Beneficial owner
Prosperous Season Group Limited	2101 Beneficial owner
Best Talent Venture Holdings Limited	2101 Beneficial owner
Chang Nan Financial Control Limited	2101 Beneficial owner
Pluto Universal Holdings Limited	2101 Beneficial owner
Lei Junfeng	2201 Interest of corporation controlled by you
Li Hui	2201 Interest of corporation controlled by you
Nan Chang Shi Tong Li Qi Ye Guan Li Zhong Xin You Xian He Huo	2201 Interest of corporation controlled by you
Nan Chang Xian Chang Nan Jin Kong Ji Jin Guan Li You Xian Gong Si	2201 Interest of corporation controlled by you

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