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. North Electro-Optic Co's
Operating Income
for the
three
months ended in Mar. 2026 was ¥-6 Mil. North Electro-Optic Co's Interest Expense for the
three
months ended in Mar. 2026 was ¥-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 North Electro-Optic Co's Interest Coverage or its related term are showing as below:
SHSE:600184'
s Interest Coverage Range Over the Past 10 Years
Min: 9.96 Med: 21.58 Max: 63.5
Current: 49.32
SHSE:600184's Interest Coverage is ranked better than 82.92% of 240
companies
in the Aerospace & Defense industry
Industry Median: 8.545
vs SHSE:600184: 49.32
North Electro-Optic Co (SHSE:600184) 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 .
North Electro-Optic Co Interest Coverage Related Terms
North Electro-Optic Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for North Electro-Optic Co'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.
SHSE:600184 vs SPCX, GE, RTX: Interest Coverage Comparison
For the Aerospace & Defense subindustry, North Electro-Optic 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.
North Electro-Optic Co Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, North Electro-Optic Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where North Electro-Optic Co's Interest Coverage falls into.
North Electro-Optic 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:
North Electro-Optic Co 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?
North Electro-Optic Co (SHSE:600184) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on North Electro-Optic Co and its competitors. Over the past decade, North Electro-Optic Co's Interest Coverage has ranged from 9.96 to 63.50. According to the industry distribution chart, North Electro-Optic Co ranks #41 out of 240 companies in the Aerospace & Defense industry, placing it in the top 17.1%.
Is North Electro-Optic Co's Interest Coverage too high?
North Electro-Optic Co's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 9.96 to a high of 63.50. Based on the distribution chart, North Electro-Optic Co ranks #41 out of 240 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, North Electro-Optic Co has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does North Electro-Optic Co's Interest Coverage compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, North Electro-Optic Co ranks #41 out of 240 companies for Interest Coverage. This places North Electro-Optic Co in the top 17% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.55. Historically, North Electro-Optic Co's own Interest Coverage has ranged from 9.96 to 63.50 over the past decade. 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 Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.55, based on 240 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 North Electro-Optic Co and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. North Electro-Optic Co'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 North Electro-Optic Co stock overvalued right now?
Based on GuruFocus' analysis, North Electro-Optic Co (SHSE:600184) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥13.33, compared to a current price of ¥23.71 — trading 77.9% above its estimated fair value. The current Interest Coverage is 0 (At Loss). North Electro-Optic Co's overall GF Score™ is 55/100 with 6 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 North Electro-Optic Co (SHSE:600184), the current Interest Coverage is 0 (At Loss) 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 North Electro-Optic Co (SHSE:600184) Overvalued in 2026?
Based on GuruFocus' analysis, North Electro-Optic Co stock appears to be overvalued.
The current stock price of ¥23.71 is trading 77.9% above its estimated GF Value™ of ¥13.33.
GuruFocus considers North Electro-Optic Co to be Significantly Overvalued.
Key valuation signals for SHSE:600184:
Interest Coverage: 0 (At Loss)
GF Value™: ¥13.33 vs. price of ¥23.71 (77.9% above fair value)
No single metric tells the full story. See the SHSE:600184 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
North Electro-Optic Co Ltd is a China-based company mainly engaged in the research and development, design, manufacture, and distribution of optoelectronic defense products. The company is also engaged in the manufacture and sales of optoelectronic materials and components.
55GF Score
Get the complete analysis for SHSE:600184
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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