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. Item 9 Labs's
Operating Income
for the
three
months ended in Jun. 2023 was $-2.80 Mil. Item 9 Labs's Interest Expense for the
three
months ended in Jun. 2023 was $-2.95 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 Item 9 Labs's Interest Coverage or its related term are showing as below:
INLB's Interest Coverage is not ranked *
in the Drug Manufacturers industry.
Industry Median: 12.78 * Ranked among companies with meaningful Interest Coverage only.
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 .
Item 9 Labs Interest Coverage Related Terms
Item 9 Labs Interest Coverage Historical Data
* Premium members only.
The historical data trend for Item 9 Labs'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.
INLB vs NEPT, CENBF, SGBI: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Item 9 Labs'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.
Item 9 Labs Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Item 9 Labs's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Item 9 Labs'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:
Item 9 Labs 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.
What does a Interest Coverage of 0 (At Loss) mean?
Item 9 Labs (INLB) has a Interest Coverage of 0 (At Loss) as of Jun. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Item 9 Labs and its competitors.
Is Item 9 Labs' Interest Coverage too high?
Item 9 Labs' current Interest Coverage is 0 (At Loss). Overall, Item 9 Labs has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Item 9 Labs' Interest Coverage compare to NEPT and CENBF?
Item 9 Labs' Interest Coverage of 0 (At Loss) can be compared against companies in the Drug Manufacturers industry. The industry median Interest Coverage is 12.78. 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. 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 Item 9 Labs 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. Item 9 Labs's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Item 9 Labs stock overvalued right now?
Item 9 Labs (INLB) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). Item 9 Labs' overall GF Score™ is 12/100. 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 Item 9 Labs (INLB), the current Interest Coverage is 0 (At Loss) as of Jun. 2023. 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.
Item 9 Labs Corp is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The Item 9 Labs brand specializes in products and user experience across several cannabis categories. The company also offers a dispensary franchise model through the national Unity Rd. retail brand. Easing barriers to entry, the franchise provides an opportunity for both new and existing dispensary owners to leverage the knowledge, resources, and ongoing support needed to thrive in their state compliantly and successfully. It also brings industry practices to markets nationwide through distinctive retail experience, cultivation capabilities, and product innovation.
12GF Score
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