Far East Horizon (HKSE:03360) Interest Coverage : 7.94 (As of Dec. 2023)

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What is Far East Horizon 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. Far East Horizon's Operating Income for the six months ended in Dec. 2023 was HK$4,393 Mil. Far East Horizon's Interest Expense for the six months ended in Dec. 2023 was HK$-553 Mil. Far East Horizon's interest coverage for the quarter that ended in Dec. 2023 was 7.94. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Far East Horizon's Interest Coverage or its related term are showing as below:

HKSE:03360' s Interest Coverage Range Over the Past 10 Years
Min: 8.71 Med: 27.66 Max: 493.8
Current: 8.71

HKSE:03360's Interest Coverage is ranked worse than
71.17% of 163 companies
in the Credit Services industry
Industry Median: 82.75 vs HKSE:03360: 8.71

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

Far East Horizon Interest Coverage Historical Data

The historical data trend for Far East Horizon'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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Far East Horizon Interest Coverage Chart

Far East Horizon Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

19.11

14.30

237.63

493.80

8.71

Far East Horizon Semi-Annual Data
	Jun14	Dec14	Jun15	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															-	9.08	-	9.45	7.94

Competitive Comparison of Far East Horizon's Interest Coverage

For the Credit Services subindustry, Far East Horizon'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.

Far East Horizon's Interest Coverage Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Far East Horizon's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Far East Horizon's Interest Coverage falls into.

Far East Horizon 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.

Far East Horizon'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, Far East Horizon's Interest Expense was HK$-1,135 Mil. Its Operating Income was HK$9,892 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$135,578 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	9892.04	/	-1135.294
	=	8.71

Far East Horizon's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Far East Horizon's Interest Expense was HK$-553 Mil. Its Operating Income was HK$4,393 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$135,578 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	4393.011	/	-553.329
	=	7.94

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

Far East Horizon (HKSE:03360) 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 .

Far East Horizon Interest Coverage Related Terms

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

Far East Horizon (HKSE:03360) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Far East Horizon Ltd (HKSE:03360) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

F6H:Germany

Address

1 Austin Road West, Unit 6608, 66th Floor, International Commerce Centre, Kowloon, Hong Kong, HKG

Website

https://www.fehorizon.com

Far East Horizon Ltd is a specialty finance provider. Its services entail integrated finance, investment, trade, advisory and engineering services in healthcare, infrastructure construction, electronic information, packaging, transportation and other sectors. The company operates in two segments. The Financial, lease, and advisory business is the highest revenue-generating segment for the company that deals with the provision of direct finance leasing, sale-leaseback, factoring, entrusted loans, and advisory services. The industrial operation and management business segment deals with the import and export trade and domestic trade of medical equipment, the provision of trade agency services, medical engineering, hospital and healthcare management, and ship brokerage services.

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