China Traditional Chinese Medicine Holdings Co (China Traditional Chinese Medicine Holdings Co) Interest Coverage : 5.54 (As of Dec. 2023)

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What is China Traditional Chinese Medicine Holdings 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. China Traditional Chinese Medicine Holdings Co's Operating Income for the six months ended in Dec. 2023 was $73 Mil. China Traditional Chinese Medicine Holdings Co's Interest Expense for the six months ended in Dec. 2023 was $-13 Mil. China Traditional Chinese Medicine Holdings Co's interest coverage for the quarter that ended in Dec. 2023 was 5.54. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for China Traditional Chinese Medicine Holdings Co's Interest Coverage or its related term are showing as below:

CHIZF' s Interest Coverage Range Over the Past 10 Years
Min: 5.39 Med: 8.54 Max: 18.65
Current: 6.83

CHIZF's Interest Coverage is ranked worse than
62.61% of 682 companies
in the Drug Manufacturers industry
Industry Median: 12.275 vs CHIZF: 6.83

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

China Traditional Chinese Medicine Holdings Co Interest Coverage Historical Data

The historical data trend for China Traditional Chinese Medicine Holdings 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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China Traditional Chinese Medicine Holdings Co Interest Coverage Chart

China Traditional Chinese Medicine Holdings Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

8.24

10.13

12.19

5.39

6.83

China Traditional Chinese Medicine Holdings Co 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															12.28	5.85	5.03	7.97	5.54

Competitive Comparison of China Traditional Chinese Medicine Holdings Co's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, China Traditional Chinese Medicine Holdings 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.

China Traditional Chinese Medicine Holdings Co's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, China Traditional Chinese Medicine Holdings Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Traditional Chinese Medicine Holdings Co's Interest Coverage falls into.

China Traditional Chinese Medicine Holdings 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.

China Traditional Chinese Medicine Holdings 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, China Traditional Chinese Medicine Holdings Co's Interest Expense was $-28 Mil. Its Operating Income was $190 Mil. And its Long-Term Debt & Capital Lease Obligation was $307 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	190.366	/	-27.877
	=	6.83

China Traditional Chinese Medicine Holdings Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, China Traditional Chinese Medicine Holdings Co's Interest Expense was $-13 Mil. Its Operating Income was $73 Mil. And its Long-Term Debt & Capital Lease Obligation was $307 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	72.608	/	-13.11
	=	5.54

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

China Traditional Chinese Medicine Holdings Co (OTCPK:CHIZF) 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 .

China Traditional Chinese Medicine Holdings Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of China Traditional Chinese Medicine Holdings Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

China Traditional Chinese Medicine Holdings Co (China Traditional Chinese Medicine Holdings Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » China Traditional Chinese Medicine Holdings Co Ltd (OTCPK:CHIZF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

00570:Hong Kong WSG:Germany

Address

288 Hennessy Road, Room 1601, Emperor Group Centre, Wanchai, Hong Kong, HKG

Website

https://www.china-tcm.com.cn

China Traditional Chinese Medicine Holdings Co Ltd is engaged in the Chinese healthcare sector. The company functions through five segments, finished drugs; concentrated TCM granules; TCM decoction pieces; TCM healthcare complex, and Local TCM integrated operation. It generates maximum revenue from the concentrated TCM granules segment. Geographically, it derives a majority of its revenue from Mainland China.