Wharf Real Estate Investment Co (HKSE:01997) Interest Coverage : 4.11 (As of Dec. 2023)

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What is Wharf Real Estate Investment Co 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. Wharf Real Estate Investment Co's Operating Income for the six months ended in Dec. 2023 was HK$5,053 Mil. Wharf Real Estate Investment Co's Interest Expense for the six months ended in Dec. 2023 was HK$-1,230 Mil. Wharf Real Estate Investment Co's interest coverage for the quarter that ended in Dec. 2023 was 4.11. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Wharf Real Estate Investment Co's Interest Coverage or its related term are showing as below:

HKSE:01997' s Interest Coverage Range Over the Past 10 Years
Min: 4.42 Med: 10.57 Max: 17.72
Current: 4.42

HKSE:01997's Interest Coverage is ranked better than
52.52% of 1350 companies
in the Real Estate industry
Industry Median: 3.97 vs HKSE:01997: 4.42

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

Wharf Real Estate Investment Co Interest Coverage Historical Data

The historical data trend for Wharf Real Estate Investment Co'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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Wharf Real Estate Investment Co Interest Coverage Chart

Wharf Real Estate Investment Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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13.57

11.13

14.21

7.74

4.42

Wharf Real Estate Investment Co Semi-Annual Data
	Dec14	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													14.86	13.76	5.37	4.79	4.11

Competitive Comparison of Wharf Real Estate Investment Co's Interest Coverage

For the Real Estate Services subindustry, Wharf Real Estate Investment Co'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.

Wharf Real Estate Investment Co's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Wharf Real Estate Investment Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Wharf Real Estate Investment Co's Interest Coverage falls into.

Wharf Real Estate Investment Co 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.

Wharf Real Estate Investment Co'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, Wharf Real Estate Investment Co's Interest Expense was HK$-2,261 Mil. Its Operating Income was HK$9,993 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$29,832 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	9993	/	-2261
	=	4.42

Wharf Real Estate Investment Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Wharf Real Estate Investment Co's Interest Expense was HK$-1,230 Mil. Its Operating Income was HK$5,053 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$29,832 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	5053	/	-1230
	=	4.11

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

Wharf Real Estate Investment Co (HKSE:01997) 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 .

Wharf Real Estate Investment Co Interest Coverage Related Terms

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

Wharf Real Estate Investment Co (HKSE:01997) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Wharf Real Estate Investment Co Ltd (HKSE:01997) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

WRFRF:USA 4WF:Germany

Address

https://www.wharfreic.com/en/investor/reports, 16th Floor, Ocean Centre, Harbour City, Kowloon, Hong Kong, HKG

Website

https://www.wharfreic.com

Wharf spun off Wharf Real Estate Investment Co in November 2017. It is a leading property investor with a focus in prime retail assets in Hong Kong. Rental income from two flagship assets Harbour City and Times Square account for around 80% of revenue. The balance is made up of The Murray hotel, a suburban mall in Plaza Hollywood, two offices in Central CBD. The group also holds two malls in Singapore and a mixed-development in Suzhou. Wharf was originally a shipping company but transformed into a property developer and investor in the 1960s by redeveloping its unused industrial assets, many located in city-center and waterfront locations. The Harbour City site was previously wharfs, and the Times Square site was a tram depot in the 1970s. Wheelock holds a 45% stake in WREIC.

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