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. Shandong Xinhua Pharmaceutical Co's
Operating Income
for the
three
months ended in Mar. 2026 was $19 Mil. Shandong Xinhua Pharmaceutical Co's Interest Expense for the
three
months ended in Mar. 2026 was $-1 Mil.
Shandong Xinhua Pharmaceutical Co's interest coverage for the quarter that ended in Mar. 2026 was 15.78.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Shandong Xinhua Pharmaceutical Co's Interest Coverage or its related term are showing as below:
SHNXY'
s Interest Coverage Range Over the Past 10 Years
Min: 3.31 Med: 9.31 Max: 15.01
Current: 10.74
SHNXY's Interest Coverage is ranked worse than 53.28% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.75
vs SHNXY: 10.74
Shandong Xinhua Pharmaceutical Co (OTCPK:SHNXY) 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 .
Shandong Xinhua Pharmaceutical Co Interest Coverage Related Terms
Shandong Xinhua Pharmaceutical Co Interest Coverage Historical Data
* 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.
Shandong Xinhua Pharmaceutical Co Interest Coverage Chart
For the Drug Manufacturers - Specialty & Generic subindustry, Shandong Xinhua Pharmaceutical Co'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.
Shandong Xinhua Pharmaceutical Co Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shandong Xinhua Pharmaceutical Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Shandong Xinhua Pharmaceutical Co's Interest Coverage falls into.
Shandong Xinhua Pharmaceutical Co 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:
* 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.
Shandong Xinhua Pharmaceutical Co (SHNXY) has a Interest Coverage of 15.78 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Shandong Xinhua Pharmaceutical Co and its competitors. This is 69% above median its historical median of 9.31. Over the past decade, Shandong Xinhua Pharmaceutical Co's Interest Coverage has ranged from 3.31 to 15.01. According to the industry distribution chart, Shandong Xinhua Pharmaceutical Co ranks #365 out of 685 companies in the Drug Manufacturers industry, placing it in the top 53.3%.
Is Shandong Xinhua Pharmaceutical Co's Interest Coverage too high?
Shandong Xinhua Pharmaceutical Co's current Interest Coverage of 15.78 is 69% above median its 10-year median of 9.31. Over the past 10 years, this metric has ranged from a low of 3.31 to a high of 15.01. The Drug Manufacturers industry median Interest Coverage is 12.75. Shandong Xinhua Pharmaceutical Co's value of 15.78 is 23.8% above this industry median. Based on the distribution chart, Shandong Xinhua Pharmaceutical Co ranks #365 out of 685 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Shandong Xinhua Pharmaceutical Co has a GF Scoreâ„¢ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Shandong Xinhua Pharmaceutical Co's Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Shandong Xinhua Pharmaceutical Co ranks #365 out of 685 companies for Interest Coverage. This places Shandong Xinhua Pharmaceutical Co in the lower half of its industry. The industry median Interest Coverage is 12.75. Shandong Xinhua Pharmaceutical Co's value of 15.78 is 23.8% above this benchmark. Historically, Shandong Xinhua Pharmaceutical Co's own Interest Coverage has ranged from 3.31 to 15.01 over the past decade. While the company's 10-year median is 9.31 vs. the industry median of 12.75, Shandong Xinhua Pharmaceutical Co has consistently been above 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 12.75, 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. Shandong Xinhua Pharmaceutical Co's current Interest Coverage of 15.78 is 23.8% 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 Shandong Xinhua Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Xinhua Pharmaceutical Co's current Interest Coverage is 15.78, which is 69% above median its own 10-year median of 9.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Xinhua Pharmaceutical Co stock overvalued right now?
Shandong Xinhua Pharmaceutical Co (SHNXY) has a current Interest Coverage of 15.78. The stock's GF Value™ is $21.89, compared to a current price of $18.19 — trading 16.9% below its estimated fair value. The current Interest Coverage is 15.78, which is 69% above median its 10-year median of 9.31 and 23.8% above the Drug Manufacturers industry median of 12.75. Shandong Xinhua Pharmaceutical Co's overall GF Score™ is 75/100 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 Shandong Xinhua Pharmaceutical Co (SHNXY), the current Interest Coverage is 15.78 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.
Is Shandong Xinhua Pharmaceutical Co (SHNXY) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Xinhua Pharmaceutical Co stock appears to be undervalued.
The current stock price of $18.19 is trading 16.9% below its estimated GF Value™ of $21.89.
Key valuation signals for SHNXY:
Interest Coverage: 15.78 (69% above median its 10-year median of 9.31)
GF Value™: $21.89 vs. price of $18.19 (16.9% below fair value)
Industry Position: 23.8% above the Drug Manufacturers median (#365 of 685)
No single metric tells the full story. See the SHNXY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Xinhua Pharmaceutical Co Business Description
Shandong Xinhua Pharmaceutical Co Ltd is a pharmaceutical products manufacturer based in China. It operates various segments namely Chemical raw materials, Preparations, Pharmaceutical intermediates and other products. The company is mainly engaged in the business of development, manufacture and sale of bulk pharmaceuticals, preparations and chemical products.
75GF Score
Get the complete analysis for SHNXY
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