China LiteratureCHLLF 71 Interest Coverage is 27.57 as of Dec. 2025, which is 90% above its 10-year median of 14.50. GuruFocus rates CHLLF with a GF Score™ of 71/100 and a GF Value™ of $4.28 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 316 Interactive Media companies, China Literature ranks better than 53.8% 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. China Literature's
Operating Income
for the
six
months ended in Dec. 2025 was $14 Mil. China Literature's Interest Expense for the
six
months ended in Dec. 2025 was $-1 Mil.
China Literature's interest coverage for the quarter that ended in Dec. 2025 was 27.57.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for China Literature's Interest Coverage or its related term are showing as below:
CHLLF'
s Interest Coverage Range Over the Past 10 Years
Min: 4.05 Med: 14.5 Max: 63.56
Current: 47.82
CHLLF's Interest Coverage is ranked better than 53.8% of 316
companies
in the Interactive Media industry
Industry Median: 38.305
vs CHLLF: 47.82
China Literature (OTCPK:CHLLF) 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 Literature Interest Coverage Related Terms
China Literature Interest Coverage Historical Data
* Premium members only.
The historical data trend for China Literature'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.
CHLLF vs GOOGL, META, SPOT: Interest Coverage Comparison
For the Internet Content & Information subindustry, China Literature'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 Literature Interest Coverage vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, China Literature's Interest Coverage distribution charts can be found below:
* The bar in red indicates where China Literature'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.
China Literature (CHLLF) has a Interest Coverage of 27.57 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Literature and its competitors. This is 90% above median its historical median of 14.50. Over the past decade, China Literature's Interest Coverage has ranged from 4.05 to 63.56. According to the industry distribution chart, China Literature ranks #146 out of 316 companies in the Interactive Media industry, placing it in the top 46.2%.
Is China Literature's Interest Coverage too high?
China Literature's current Interest Coverage of 27.57 is 90% above median its 10-year median of 14.50. Over the past 10 years, this metric has ranged from a low of 4.05 to a high of 63.56. The Interactive Media industry median Interest Coverage is 38.31. China Literature's value of 27.57 is 28% below this industry median. Based on the distribution chart, China Literature ranks #146 out of 316 companies in the Interactive Media industry, which is above the industry midpoint. Overall, China Literature has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Literature's Interest Coverage compare to GOOGL and META?
According to the Interactive Media industry distribution chart, China Literature ranks #146 out of 316 companies for Interest Coverage. This puts China Literature in the upper half of its industry. The industry median Interest Coverage is 38.31. China Literature's value of 27.57 is 28% below this benchmark. Historically, China Literature's own Interest Coverage has ranged from 4.05 to 63.56 over the past decade. While the company's 10-year median is 14.50 vs. the industry median of 38.31, China Literature 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 an Interactive Media company?
The median Interest Coverage among Interactive Media companies is 38.31, based on 316 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. China Literature's current Interest Coverage of 27.57 is 28% 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 China Literature and its competitors. For the Interactive Media industry, the median Interest Coverage is 38.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Literature's current Interest Coverage is 27.57, which is 90% above median its own 10-year median of 14.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Literature stock overvalued right now?
Based on GuruFocus' analysis, China Literature (CHLLF) is currently considered Possible Value Trap. The stock's GF Value™ is $4.28, compared to a current price of $2.55 — trading 40.4% below its estimated fair value. The current Interest Coverage is 27.57, which is 90% above median its 10-year median of 14.50 and 28% below the Interactive Media industry median of 38.31. China Literature's overall GF Score™ is 71/100 with 5 warning signs to review. 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 China Literature (CHLLF), the current Interest Coverage is 27.57 as of Dec. 2025. 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.
Is China Literature (CHLLF) Overvalued in 2026?
Based on GuruFocus' analysis, China Literature stock appears to be undervalued.
The current stock price of $2.55 is trading 40.4% below its estimated GF Value™ of $4.28.
GuruFocus considers China Literature to be Possible Value Trap.
Key valuation signals for CHLLF:
Interest Coverage: 27.57 (90% above median its 10-year median of 14.50)
GF Value™: $4.28 vs. price of $2.55 (40.4% below fair value)
Industry Position: 28% below the Interactive Media median (#146 of 316)
No single metric tells the full story. See the CHLLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Literature Ltd is an investment holding company. The company, along with its subsidiaries, provides online reading services, copyright commercialization, writer cultivation and brokerage, and operation of text work reading. It generates its revenue from Online reading through self-owned platform products. It operates in two segments: Online business, Intellectual property operations, and others. The Online business segment that derives the majority of revenue comprises online paid reading, online advertising, and game publishing. The Intellectual property operations and other segment include licensing and distribution of film and television properties, copyrights licensing, sales of adaptation rights and scripts, sales of physical books, and in-house online games operations.
71GF Score
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