ESR Group (HKSE:01821) Interest Coverage : 0.73 (As of Dec. 2023)

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What is ESR Group 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. ESR Group's Operating Income for the six months ended in Dec. 2023 was HK$881 Mil. ESR Group's Interest Expense for the six months ended in Dec. 2023 was HK$-1,204 Mil. ESR Group's interest coverage for the quarter that ended in Dec. 2023 was 0.73. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:01821' s Interest Coverage Range Over the Past 10 Years
Min: 0.43 Med: 0.61 Max: 1.35
Current: 1.12

HKSE:01821's Interest Coverage is ranked worse than
84.2% of 1342 companies
in the Real Estate industry
Industry Median: 3.97 vs HKSE:01821: 1.12

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

ESR Group Interest Coverage Historical Data

The historical data trend for ESR Group'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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ESR Group Interest Coverage Chart

ESR Group Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.43

0.56

0.66

1.35

1.12

ESR Group Semi-Annual Data
	Dec16	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial								0.38	1.85	0.95	1.50	0.73

Competitive Comparison of ESR Group's Interest Coverage

For the Real Estate Services subindustry, ESR Group'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.

ESR Group's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, ESR Group's Interest Coverage distribution charts can be found below:

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

ESR Group 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.

ESR Group'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, ESR Group's Interest Expense was HK$-2,444 Mil. Its Operating Income was HK$2,741 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$39,832 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2741.49	/	-2443.694
	=	1.12

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

Here, for the six months ended in Dec. 2023, ESR Group's Interest Expense was HK$-1,204 Mil. Its Operating Income was HK$881 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$39,832 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	880.867	/	-1203.584
	=	0.73

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

ESR Group (HKSE:01821) 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 .

ESR Group Interest Coverage Related Terms

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

ESR Group (HKSE:01821) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » ESR Group Ltd (HKSE:01821) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ESRCF:USA

Address

Two Exchange Square, Suites 2905-06, 8 Connaught Place, Central, Hong Kong, HKG

Website

https://www.esr.com

ESR Group, or ESR, is one of the largest real asset managers in the Asia-Pacific, with USD 145 billion in total assets under management as of Dec. 31, 2022. Most of its earnings are derived from fund management, where it manages underlying assets in investment vehicles such as a fund or REIT for fee income and a share of profits. It also develops and holds investment properties on its balance sheet for rental income and capital appreciation and will divest them into its managed funds and REITs over time to unlock and recycle the capital into other investment opportunities. In addition, to align its interest with its capital partners, ESR coinvests in the funds and REITs that it manages where it generates dividend income, pro rata earnings and value appreciation.

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