MMG (HKSE:01208) Interest Coverage : 1.79 (As of Dec. 2023)

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What is MMG 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. MMG's Operating Income for the six months ended in Dec. 2023 was HK$2,927 Mil. MMG's Interest Expense for the six months ended in Dec. 2023 was HK$-1,631 Mil. MMG's interest coverage for the quarter that ended in Dec. 2023 was 1.79. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. MMG Ltd interest coverage is 1.43, which is low.

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

HKSE:01208' s Interest Coverage Range Over the Past 10 Years
Min: 0.94 Med: 1.72 Max: 6.24
Current: 1.43

HKSE:01208's Interest Coverage is ranked worse than
95.6% of 1342 companies
in the Metals & Mining industry
Industry Median: No Debt vs HKSE:01208: 1.43

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

MMG Interest Coverage Historical Data

The historical data trend for MMG'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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MMG Interest Coverage Chart

MMG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.99

1.34

6.24

2.60

1.43

MMG 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															5.86	2.08	3.08	0.99	1.79

Competitive Comparison of MMG's Interest Coverage

For the Copper subindustry, MMG'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.

MMG's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, MMG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where MMG's Interest Coverage falls into.

MMG 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.

MMG'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, MMG's Interest Expense was HK$-2,998 Mil. Its Operating Income was HK$4,282 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$27,345 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4282.113	/	-2998.182
	=	1.43

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

Here, for the six months ended in Dec. 2023, MMG's Interest Expense was HK$-1,631 Mil. Its Operating Income was HK$2,927 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$27,345 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2927.113	/	-1631.467
	=	1.79

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

MMG (HKSE:01208) 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 .

MMG Interest Coverage Related Terms

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

MMG (HKSE:01208) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » MMG Ltd (HKSE:01208) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MMLTF:USA OMS1:Germany

Address

79 Chatham Road South, Unit 1208, 12th Floor, China Minmetals Tower, Tsimshatsui, Kowloon, Hong Kong, HKG

Website

https://www.mmg.com

MMG Ltd is engaged in the exploration, development, and mining of zinc, copper, gold, silver, and lead deposits around the world. The group has five reportable operating segments namely Dugald River, Kinsevere, Rosebery, Las Bambas, and others. Las Bambas mine is an open-pit, scalable, long-life copper and molybdenum mining operation; Kinsevere is an open-pit copper mining operation located in the Haut-Katanga Province; Dugald River mine is an underground zinc mining operation located near Cloncurry in North West Queensland; Rosebery is an underground polymetallic base metal mining operation located on Tasmania's west coast; and Other Includes corporate entities in the Group. The majority is from the Las Bambas segment. The key revenue by metal is derived from Copper.

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