Haidilao International Holding (HKSE:06862) Interest Coverage : 17.54 (As of Dec. 2023)

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What is Haidilao International Holding 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. Haidilao International Holding's Operating Income for the six months ended in Dec. 2023 was HK$3,231 Mil. Haidilao International Holding's Interest Expense for the six months ended in Dec. 2023 was HK$-184 Mil. Haidilao International Holding's interest coverage for the quarter that ended in Dec. 2023 was 17.54. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:06862' s Interest Coverage Range Over the Past 10 Years
Min: 1.41 Med: 15.8 Max: 198.62
Current: 15.8

HKSE:06862's Interest Coverage is ranked better than
74.42% of 258 companies
in the Restaurants industry
Industry Median: 6.76 vs HKSE:06862: 15.80

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

Haidilao International Holding Interest Coverage Historical Data

The historical data trend for Haidilao International Holding'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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Haidilao International Holding Interest Coverage Chart

Haidilao International Holding Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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14.52

3.41

1.41

4.43

15.80

Haidilao International Holding Semi-Annual Data
	Dec15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial											0.24	2.07	6.25	14.19	17.54

Competitive Comparison of Haidilao International Holding's Interest Coverage

For the Restaurants subindustry, Haidilao International Holding'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.

Haidilao International Holding's Interest Coverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Haidilao International Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Haidilao International Holding's Interest Coverage falls into.

Haidilao International Holding 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.

Haidilao International Holding'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, Haidilao International Holding's Interest Expense was HK$-384 Mil. Its Operating Income was HK$6,073 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$6,224 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	6072.819	/	-384.387
	=	15.80

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

Here, for the six months ended in Dec. 2023, Haidilao International Holding's Interest Expense was HK$-184 Mil. Its Operating Income was HK$3,231 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$6,224 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	3231.199	/	-184.202
	=	17.54

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

Haidilao International Holding (HKSE:06862) 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 .

Haidilao International Holding Interest Coverage Related Terms

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

Haidilao International Holding (HKSE:06862) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Haidilao International Holding Ltd (HKSE:06862) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HDALF:USA 8HI:Germany

Address

No. 398 Yard, Zhongdong Road, 7th Floor, No. 1 Building, Dongxiaokou Town, Changping District, Beijing, CHN, 102218

Website

https://www.haidilao.com

Haidilao International is a Chinese hot pot restaurant operator that started in Sichuan in 1998. In 2022, the restaurant chain served over 276 million customers across more than the 1,300 stores it had in Greater China. With CNY 31 billion in 2022 systemwide sales, the firm is the second-largest restaurant company in China, behind Yum China (CNY 68 billion) but ahead of Xiabuxiabu and Jiumaojiu. All of Haidilao's restaurants are company-owned, as the firm is focusing more on the quality of its restaurants than quantity.Haidilao is known for serving Sichuan-style hot pot along with exceptional service. It's still looking to expand its store footprint, but expansion opportunities are now limited to only Greater China following the spinoff of Super Hi—the operator of Haidilao stores overseas.

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