GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » HKT Trust and HKT Ltd (OTCPK:HKTTF) » Definitions » Interest Coverage

HKT Trust and HKT (HKT Trust and HKT) Interest Coverage : 4.20 (As of Dec. 2023)


View and export this data going back to 2012. Start your Free Trial

What is HKT Trust and HKT 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. HKT Trust and HKT's Operating Income for the six months ended in Dec. 2023 was $595 Mil. HKT Trust and HKT's Interest Expense for the six months ended in Dec. 2023 was $-142 Mil. HKT Trust and HKT's interest coverage for the quarter that ended in Dec. 2023 was 4.20. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for HKT Trust and HKT's Interest Coverage or its related term are showing as below:

HKTTF' s Interest Coverage Range Over the Past 10 Years
Min: 3.92   Med: 5.47   Max: 6.56
Current: 3.92


HKTTF's Interest Coverage is ranked worse than
55.33% of 291 companies
in the Telecommunication Services industry
Industry Median: 4.49 vs HKTTF: 3.92

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


HKT Trust and HKT Interest Coverage Historical Data

The historical data trend for HKT Trust and HKT'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.

* Premium members only.

HKT Trust and HKT Interest Coverage Chart

HKT Trust and HKT Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.50 5.77 6.16 5.03 3.92

HKT Trust and HKT 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.96 4.80 5.19 3.58 4.20

Competitive Comparison of HKT Trust and HKT's Interest Coverage

For the Telecom Services subindustry, HKT Trust and HKT'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.


HKT Trust and HKT's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, HKT Trust and HKT's Interest Coverage distribution charts can be found below:

* The bar in red indicates where HKT Trust and HKT's Interest Coverage falls into.



HKT Trust and HKT 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.

HKT Trust and HKT'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, HKT Trust and HKT's Interest Expense was $-260 Mil. Its Operating Income was $1,018 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,698 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*1018.208/-260.058
=3.92

HKT Trust and HKT's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, HKT Trust and HKT's Interest Expense was $-142 Mil. Its Operating Income was $595 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,698 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*594.509/-141.617
=4.20

* 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.

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


HKT Trust and HKT  (OTCPK:HKTTF) 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 .


HKT Trust and HKT Interest Coverage Related Terms

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


HKT Trust and HKT (HKT Trust and HKT) Business Description

Traded in Other Exchanges
Address
979 King’s Road, Quarry Bay, 39th Floor, PCCW Tower, Taikoo Place, Hong Kong, HKG
HKT Trust and HKT Ltd is a triple-play telecommunications provider that operates through three segments, telecommunications services, mobile, and Other businesses. Telecommunication services are the larger business segment and generates revenue by providing voice services, broadband services, local and international data services, and the sales of equipment. The company's mobile segment generates revenue by selling mobile services and handsets. The Other Businesses segment primarily comprises new business areas such as Tap & Go mobile payment service and The Club program, and corporate support functions. The company owns fiber and mobile infrastructure. HKT Trust generate the vast majority of its revenue in Hong Kong.