Labat AfricaJSE:LAB Interest Coverage is 210.47 as of Nov. 2025. The stock has 5 warning signs investors should review. Among 685 Drug Manufacturers companies, Labat Africa ranks better than 75.77% 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. Labat Africa's
Operating Income
for the
six
months ended in Nov. 2025 was R97.9 Mil. Labat Africa's Interest Expense for the
six
months ended in Nov. 2025 was R-0.5 Mil.
Labat Africa's interest coverage for the quarter that ended in Nov. 2025 was 210.47.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Labat Africa's Interest Coverage or its related term are showing as below:
JSE:LAB'
s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 77.02
Current: 77.02
JSE:LAB's Interest Coverage is ranked better than 75.77% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs JSE:LAB: 77.02
Labat Africa (JSE:LAB) 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 .
Labat Africa Interest Coverage Related Terms
Labat Africa Interest Coverage Historical Data
* Premium members only.
The historical data trend for Labat Africa'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.
JSE:LAB vs ZTS, UTHR, VTRS: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Labat Africa'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.
Labat Africa (JSE:LAB) has a Interest Coverage of 210.47 as of Nov. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Labat Africa and its competitors. According to the industry distribution chart, Labat Africa ranks #166 out of 685 companies in the Drug Manufacturers industry, placing it in the top 24.2%.
Is Labat Africa's Interest Coverage too high?
Labat Africa's current Interest Coverage is 210.47. The Drug Manufacturers industry median Interest Coverage is 12.78. Labat Africa's value of 210.47 is 1546.9% above this industry median. Based on the distribution chart, Labat Africa ranks #166 out of 685 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers.
How does Labat Africa's Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #166 out of 685 companies for Interest Coverage. This places Labat Africa in the top 24% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 12.78. Labat Africa's value of 210.47 is 1546.9% above this benchmark. 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. Labat Africa's current Interest Coverage of 210.47 is 1546.9% above 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 Labat Africa 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. Labat Africa's current Interest Coverage is 210.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.22, compared to a current price of R0.05 — trading 77.3% below its estimated fair value. The current Interest Coverage is 210.47 and 1546.9% above 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 Labat Africa (JSE:LAB), the current Interest Coverage is 210.47 as of Nov. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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