Shandong Buchang Pharmaceuticals Co (SHSE:603858) Interest Coverage : 7.47 (As of Mar. 2024)

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What is Shandong Buchang Pharmaceuticals 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. Shandong Buchang Pharmaceuticals Co's Operating Income for the three months ended in Mar. 2024 was ¥219 Mil. Shandong Buchang Pharmaceuticals Co's Interest Expense for the three months ended in Mar. 2024 was ¥-29 Mil. Shandong Buchang Pharmaceuticals Co's interest coverage for the quarter that ended in Mar. 2024 was 7.47. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Shandong Buchang Pharmaceuticals Co's Interest Coverage or its related term are showing as below:

SHSE:603858' s Interest Coverage Range Over the Past 10 Years
Min: 8.13 Med: 16.39 Max: 25.25
Current: 8.13

SHSE:603858's Interest Coverage is ranked worse than
58.5% of 682 companies
in the Drug Manufacturers industry
Industry Median: 12.175 vs SHSE:603858: 8.13

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

Shandong Buchang Pharmaceuticals Co Interest Coverage Historical Data

The historical data trend for Shandong Buchang Pharmaceuticals 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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Shandong Buchang Pharmaceuticals Co Interest Coverage Chart

Shandong Buchang Pharmaceuticals Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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17.97

17.00

11.75

14.16

11.15

Shandong Buchang Pharmaceuticals Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															19.99	14.08	8.08	2.75	7.47

Competitive Comparison of Shandong Buchang Pharmaceuticals Co's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Shandong Buchang Pharmaceuticals 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.

Shandong Buchang Pharmaceuticals Co's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Shandong Buchang Pharmaceuticals Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shandong Buchang Pharmaceuticals Co's Interest Coverage falls into.

Shandong Buchang Pharmaceuticals 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.

Shandong Buchang Pharmaceuticals 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, Shandong Buchang Pharmaceuticals Co's Interest Expense was ¥-110 Mil. Its Operating Income was ¥1,225 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥2,109 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1225.259	/	-109.931
	=	11.15

Shandong Buchang Pharmaceuticals Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Shandong Buchang Pharmaceuticals Co's Interest Expense was ¥-29 Mil. Its Operating Income was ¥219 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥2,557 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	219.132	/	-29.353
	=	7.47

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

Shandong Buchang Pharmaceuticals Co (SHSE:603858) 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 .

Shandong Buchang Pharmaceuticals Co Interest Coverage Related Terms

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Shandong Buchang Pharmaceuticals Co (SHSE:603858) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Shandong Buchang Pharmaceuticals Co Ltd (SHSE:603858) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

No. 369, Zhonghua West Road, Shandong Province, Heze, CHN, 274000

Website

http://www.buchang.com

Shandong Buchang Pharmaceuticals Co Ltd is a pharmaceuticals company engaged in drug manufacturing. It specializes in the research and development, production and sale of Traditional Chinese patent medicines, supplemented by fields such as hi-tech industry and health industry. The company offers drugs for cardiac and cerebral vascular disease, diabetes, urinary and digestive disease, respiratory disease, gynecological disease and others. Geographically, the company holds its production bases in Shandong, Shaanxi, Hebei and Northeast China, with its marketing network spreading all over the major provinces of China.

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