China Resources Pharmaceutical Group (HKSE:03320) Interest Coverage : 6.83 (As of Dec. 2023)

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What is China Resources Pharmaceutical 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. China Resources Pharmaceutical Group's Operating Income for the six months ended in Dec. 2023 was HK$6,668 Mil. China Resources Pharmaceutical Group's Interest Expense for the six months ended in Dec. 2023 was HK$-977 Mil. China Resources Pharmaceutical Group's interest coverage for the quarter that ended in Dec. 2023 was 6.83. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:03320' s Interest Coverage Range Over the Past 10 Years
Min: 2.93 Med: 4.89 Max: 6.23
Current: 6.23

HKSE:03320's Interest Coverage is ranked worse than
64.37% of 682 companies
in the Drug Manufacturers industry
Industry Median: 12.275 vs HKSE:03320: 6.23

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 Resources Pharmaceutical Group Interest Coverage Historical Data

The historical data trend for China Resources Pharmaceutical 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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China Resources Pharmaceutical Group Interest Coverage Chart

China Resources Pharmaceutical Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.93

3.86

4.78

5.24

6.23

China Resources Pharmaceutical Group Semi-Annual Data
	Dec13	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															4.64	6.25	4.34	5.88	6.83

Competitive Comparison of China Resources Pharmaceutical Group's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, China Resources Pharmaceutical 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.

China Resources Pharmaceutical Group's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, China Resources Pharmaceutical Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Resources Pharmaceutical Group's Interest Coverage falls into.

China Resources Pharmaceutical 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.

China Resources Pharmaceutical 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, China Resources Pharmaceutical Group's Interest Expense was HK$-2,610 Mil. Its Operating Income was HK$16,265 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$17,432 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	16265.441	/	-2610.098
	=	6.23

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

Here, for the six months ended in Dec. 2023, China Resources Pharmaceutical Group's Interest Expense was HK$-977 Mil. Its Operating Income was HK$6,668 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$17,432 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	6668.049	/	-976.701
	=	6.83

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

China Resources Pharmaceutical Group (HKSE:03320) 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 Resources Pharmaceutical Group Interest Coverage Related Terms

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China Resources Pharmaceutical Group (HKSE:03320) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » China Resources Pharmaceutical Group Ltd (HKSE:03320) » Definitions » Interest Coverage

Traded in Other Exchanges

640:Germany

Address

26 Harbour Road, 41st Floor, China Resources Building, Room 4104-05, Wanchai, HKG

Website

https://www.crpharm.com

CR Pharma, is a vertically integrated conglomerate that operates drug manufacturing, distribution, and retail pharmacy businesses in mainland China. It is the third largest drug distributor by revenue, with a strong presence in Eastern, Northern, and Southern China. Its drug manufacturing segment primarily consists of four listed subsidiaries, Dong E E Jiao, CR Sanjiu, CR Double Crane, and Jiangzhong Pharmaceutical, which are well-known makers of over-the-counter traditional Chinese medicines (or TCM), health supplements, and prescription drugs. We estimate the company's operating income is approximately 53% distribution, 46% manufacturing, and less than 1% retail pharmacies.

China Resources Pharmaceutical Group (HKSE:03320) Headlines

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