Little Green PharmaASX:LGP Interest Coverage is 7.05 as of Mar. 2026, which is 100% below its 10-year median of 5,002.34. The stock has 3 warning signs investors should review. Among 685 Drug Manufacturers companies, Little Green Pharma ranks worse than 71.53% on this metric.
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. Little Green Pharma's
Operating Income
for the
six
months ended in Mar. 2026 was A$1.54 Mil. Little Green Pharma's Interest Expense for the
six
months ended in Mar. 2026 was A$-0.22 Mil.
Little Green Pharma's interest coverage for the quarter that ended in Mar. 2026 was 7.05.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Little Green Pharma Ltd interest coverage is 4.67, which is low.
The historical rank and industry rank for Little Green Pharma's Interest Coverage or its related term are showing as below:
ASX:LGP'
s Interest Coverage Range Over the Past 10 Years
Min: 4.67 Med: 5002.34 Max: No Debt
Current: 4.67
ASX:LGP's Interest Coverage is ranked worse than 71.53% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs ASX:LGP: 4.67
Little Green Pharma (ASX:LGP) 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 .
Little Green Pharma Interest Coverage Related Terms
Little Green Pharma Interest Coverage Historical Data
* Premium members only.
The historical data trend for Little Green Pharma'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Little Green Pharma'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.
Little Green Pharma Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Little Green Pharma's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Little Green Pharma's Interest Coverage falls into.
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:
* 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.
Little Green Pharma (ASX:LGP) has a Interest Coverage of 7.05 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Little Green Pharma and its competitors. This is 100% below median its historical median of 5,002.34. Over the past decade, Little Green Pharma's Interest Coverage has ranged from 4.67 to 10,000.00. According to the industry distribution chart, Little Green Pharma ranks #490 out of 685 companies in the Drug Manufacturers industry, placing it in the top 71.5%.
Is Little Green Pharma's Interest Coverage too high?
Little Green Pharma's current Interest Coverage of 7.05 is 100% below median its 10-year median of 5,002.34. Over the past 10 years, this metric has ranged from a low of 4.67 to a high of 10,000.00. The Drug Manufacturers industry median Interest Coverage is 12.78. Little Green Pharma's value of 7.05 is 44.8% below this industry median. Based on the distribution chart, Little Green Pharma ranks #490 out of 685 companies in the Drug Manufacturers industry, which is below the industry midpoint.
How does Little Green Pharma's Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Little Green Pharma ranks #490 out of 685 companies for Interest Coverage. This places Little Green Pharma in the lower half of its industry. The industry median Interest Coverage is 12.78. Little Green Pharma's value of 7.05 is 44.8% below this benchmark. Historically, Little Green Pharma's own Interest Coverage has ranged from 4.67 to 10,000.00 over the past decade. While the company's 10-year median is 5,002.34 vs. the industry median of 12.78, Little Green Pharma has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.78, based on 685 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Little Green Pharma's current Interest Coverage of 7.05 is 44.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Little Green Pharma and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Little Green Pharma's current Interest Coverage is 7.05, which is 100% below median its own 10-year median of 5,002.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Little Green Pharma stock overvalued right now?
Based on GuruFocus' analysis, Little Green Pharma (ASX:LGP) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.17, compared to a current price of A$0.06 — trading 62.4% below its estimated fair value. The current Interest Coverage is 7.05, which is 100% below median its 10-year median of 5,002.34 and 44.8% below the Drug Manufacturers industry median of 12.78. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Little Green Pharma (ASX:LGP), the current Interest Coverage is 7.05 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Little Green Pharma Ltd is engaged in the vertically integrated medicinal cannabis business. The business activities of the company include cultivation, production, research and development, manufacturing, and distribution of medicinal cannabis products. The company's two key types of products available at Little Green Pharma are oils (which are ingested) and flowers (which are usually inhaled through vaporizing). It offers LGP-branded medicinal cannabis oil products in the Australian and European markets. The Group is organized into two operating segments: Australia and Europe (cultivation, production and distribution of cannabis products to Australian and European customers).
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