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Hua Medicine (HKSE:02552) Interest Coverage : 0 (At Loss) (As of Dec. 2024)


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What is Hua Medicine 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. Hua Medicine's Operating Income for the six months ended in Dec. 2024 was HK$-171.1 Mil. Hua Medicine's Interest Expense for the six months ended in Dec. 2024 was HK$-5.0 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Hua Medicine's Interest Coverage or its related term are showing as below:


HKSE:02552's Interest Coverage is not ranked *
in the Drug Manufacturers industry.
Industry Median: 12.05
* Ranked among companies with meaningful Interest Coverage only.

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


Hua Medicine Interest Coverage Historical Data

The historical data trend for Hua Medicine'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.

* Premium members only.

Hua Medicine Interest Coverage Chart

Hua Medicine Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
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Hua Medicine Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of Hua Medicine's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Hua Medicine'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.


Hua Medicine's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Hua Medicine's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hua Medicine's Interest Coverage falls into.


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Hua Medicine 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.

Hua Medicine's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Hua Medicine's Interest Expense was HK$-9.2 Mil. Its Operating Income was HK$-376.5 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$197.1 Mil.

Hua Medicine did not have earnings to cover the interest expense.

Hua Medicine's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Hua Medicine's Interest Expense was HK$-5.0 Mil. Its Operating Income was HK$-171.1 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$197.1 Mil.

Hua Medicine did not have earnings to cover the 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.

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


Hua Medicine  (HKSE:02552) 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 .


Hua Medicine Interest Coverage Related Terms

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


Hua Medicine Business Description

Traded in Other Exchanges
N/A
Address
Lane 36, Xuelin Road, Hua Medicine, Building 2, Pudong New Area, Shanghai, CHN, 201203
Hua Medicine is an investment holding company. It is engaged in the development and commercialization of a first-in-class oral drug, Dorzagliatin or HMS5552, for the treatment of Type 2 diabetes. Dorzagliatin is a first-in-class glucokinase activator, or GKA, designed to control the progressive degenerative nature of diabetes by restoring glucose homeostasis in Type 2 diabetes. The group majorly operates and generates the majority of its revenue from PRC.
Executives
Hong Jane Xingfang 2202 Interest of your spouse
Chen Li 2101 Beneficial owner
Hlyy Limited 2306 Nominee for another person
Tct (bvi) Limited 2501 Other
The Core Trust Company Limited 2301 Trustee
Wuxi Pharmatech Investments (cayman) Inc. 2201 Interest of corporation controlled by you
Wuxi Pharmatech Investment Holdings (cayman) Inc. 2201 Interest of corporation controlled by you
Wuxi Pharmatech Fund I General Partner L.p. 2201 Interest of corporation controlled by you
Wuxi Pharmatech Healthcare Fund I L.p. 2101 Beneficial owner
Wuxi Apptec Co., Ltd. 2201 Interest of corporation controlled by you
Wuxi Apptec International Holdings Limited 2201 Interest of corporation controlled by you
Nelsen Robert Taylor 2101 Beneficial owner
Venrock Management V, Llc 2102 Investment manager
Harvest Yuanxiang (cayman) Limited 2101 Beneficial owner
Arch Venture Fund Vii, L.p. 2101 Beneficial owner

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