In the last two years, the index has been greater than 1, indicating that the company has the ability to repay interest. Among them, in 2021, the index was much higher than other years, more than seven times that of 2020. This change is due to the fact that the operating profit (adjusted before financial activities) has increased four times compared with last year, and the interest cost of loans has also decreased by 30%.<br>In contrast, the industry average is 7. Fourth, this index has been too low for many years. The reason is that enterprises have borrowed a considerable amount of funds for their business activities, which makes the loan interest expenses account for a large proportion of the total operating costs.
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