IMS Group Holdings (HKSE:08136) Interest Coverage : 274.71 (As of Sep. 2023)

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What is IMS Group 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. IMS Group Holdings's Operating Income for the three months ended in Sep. 2023 was HK$10.44 Mil. IMS Group Holdings's Interest Expense for the three months ended in Sep. 2023 was HK$-0.04 Mil. IMS Group Holdings's interest coverage for the quarter that ended in Sep. 2023 was 274.71. 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. IMS Group Holdings Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

HKSE:08136' s Interest Coverage Range Over the Past 10 Years
Min: 1.98 Med: 66.71 Max: No Debt
Current: 65.8

HKSE:08136's Interest Coverage is ranked better than
76.74% of 2300 companies
in the Industrial Products industry
Industry Median: 13.505 vs HKSE:08136: 65.80

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

IMS Group Holdings Interest Coverage Historical Data

The historical data trend for IMS Group 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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IMS Group Holdings Interest Coverage Chart

IMS Group Holdings Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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No Debt

35.35

33.11

98.07

32.17

IMS Group Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial															97.60	16.77	-	197.11	274.71

Competitive Comparison of IMS Group Holdings's Interest Coverage

For the Electrical Equipment & Parts subindustry, IMS Group 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.

IMS Group Holdings's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, IMS Group Holdings's Interest Coverage distribution charts can be found below:

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

IMS Group 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.

IMS Group Holdings's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, IMS Group Holdings's Interest Expense was HK$-0.23 Mil. Its Operating Income was HK$7.27 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1.43 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	7.271	/	-0.226
	=	32.17

IMS Group Holdings's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, IMS Group Holdings's Interest Expense was HK$-0.04 Mil. Its Operating Income was HK$10.44 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.46 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	10.439	/	-0.038
	=	274.71

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

IMS Group Holdings (HKSE:08136) 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 .

IMS Group Holdings Interest Coverage Related Terms

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

IMS Group Holdings (HKSE:08136) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » IMS Group Holdings Ltd (HKSE:08136) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

No. 8 Watson Road, North Point, 12th floor, Unit 1201, Block C Seaview Estate, Hong Kong, HKG

Website

https://www.imsgroupholdings.com

IMS Group Holdings Ltd is a provider of integrated LED lighting solutions. The company principally engaged in sale of LED lighting fixtures and visual-audio system, provision of integrated LED lighting solution services, project consultancy and LED lighting system maintenance services, sale of 3D printing materials and provision for 3D printing services. The firm receives a majority of its revenue from the sale of LED lighting fixtures followed by integrated LED lighting solution services. It has a business presence in Hong Kong, the PRC, Asia, Europe and others, of which the key revenue is derived from the PRC.

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