Star Plus Legend Holdings (HKSE:06683) Interest Coverage : 67.74 (As of Dec. 2023)

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What is Star Plus Legend 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. Star Plus Legend Holdings's Operating Income for the six months ended in Dec. 2023 was HK$42.7 Mil. Star Plus Legend Holdings's Interest Expense for the six months ended in Dec. 2023 was HK$-0.6 Mil. Star Plus Legend Holdings's interest coverage for the quarter that ended in Dec. 2023 was 67.74. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Star Plus Legend Holdings Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Star Plus Legend Holdings's Interest Coverage or its related term are showing as below:

HKSE:06683' s Interest Coverage Range Over the Past 10 Years
Min: 6.71 Med: 76.39 Max: 239.8
Current: 52.51

HKSE:06683's Interest Coverage is ranked better than
79.04% of 1379 companies
in the Consumer Packaged Goods industry
Industry Median: 8.61 vs HKSE:06683: 52.51

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

Star Plus Legend Holdings Interest Coverage Historical Data

The historical data trend for Star Plus Legend 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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Star Plus Legend Holdings Interest Coverage Chart

Star Plus Legend Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

144.35

239.80

6.71

76.39

52.51

Star Plus Legend Holdings Semi-Annual Data
	Dec19	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial			N/A	39.97	112.17	39.48	67.74

Competitive Comparison of Star Plus Legend Holdings's Interest Coverage

For the Packaged Foods subindustry, Star Plus Legend 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.

Star Plus Legend Holdings's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Star Plus Legend Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Star Plus Legend Holdings's Interest Coverage falls into.

Star Plus Legend 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.

Star Plus Legend 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, Star Plus Legend Holdings's Interest Expense was HK$-1.4 Mil. Its Operating Income was HK$71.7 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$7.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	71.733	/	-1.366
	=	52.51

Star Plus Legend Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Star Plus Legend Holdings's Interest Expense was HK$-0.6 Mil. Its Operating Income was HK$42.7 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$7.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	42.676	/	-0.63
	=	67.74

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

Star Plus Legend Holdings (HKSE:06683) 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 .

Star Plus Legend Holdings Interest Coverage Related Terms

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

Star Plus Legend Holdings (HKSE:06683) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Star Plus Legend Holdings Ltd (HKSE:06683) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

68 Jinjie Road, 2/F, Block 1, Dream Star Garden, Huaqiao Town, Kunshan, CHN

Website

https://www.splegend.com

Star Plus Legend Holdings Ltd is an investment holding company. The company and its subsidiaries are principally engaged in new retail business and IP creation and operation business in the People's Republic of China. In the new retail business, the company primarily develops and sells health management products and skincare products. In the IP creation and operation business, the company creates unique celebrity IPs by providing planning and other project management services to media content, acting as an event planning service provider and investor in large-scale concerts featuring celebrities and other events, together with designing and licensing proprietary celebrity IPs. The majority of revenue is derived from the new retail business.

Executives

Zhang Yuan	2201 Interest of corporation controlled by you
Lai Kwok Fai Franki	2101 Beneficial owner
Chen Chung	2501 Other
Ma Hsin-ting	2501 Other
Yang Chun-jung	2501 Other
Yeh Hui-mei	2501 Other
Harmony Culture Investment Limited	2101 Beneficial owner
Legend Key International Limited	2101 Beneficial owner
Max One Ltd.	2101 Beneficial owner
Loo See Yuen	2201 Interest of corporation controlled by you
Ho Chi Sing	2201 Interest of corporation controlled by you

Star Plus Legend Holdings (HKSE:06683) Headlines

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