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. Hygon Information Technology Co's
Operating Income
for the
three
months ended in Mar. 2026 was ¥965 Mil. Hygon Information Technology Co's Interest Expense for the
three
months ended in Mar. 2026 was ¥-18 Mil.
Hygon Information Technology Co's interest coverage for the quarter that ended in Mar. 2026 was 53.12.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Hygon Information Technology Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Hygon Information Technology Co's Interest Coverage or its related term are showing as below:
SHSE:688041'
s Interest Coverage Range Over the Past 10 Years
Min: 17.44 Med: 39.75 Max: 61.73
Current: 56.3
SHSE:688041's Interest Coverage is ranked better than 74.1% of 1672
companies
in the Hardware industry
Industry Median: 13.675
vs SHSE:688041: 56.30
Hygon Information Technology Co (SHSE:688041) 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 .
Hygon Information Technology Co Interest Coverage Related Terms
Hygon Information Technology 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.
Hygon Information Technology Co Interest Coverage Chart
SHSE:688041 vs SNDK, DELL, STX: Interest Coverage Comparison
For the Computer Hardware subindustry, Hygon Information Technology 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.
Hygon Information Technology Co Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Hygon Information Technology Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hygon Information Technology Co's Interest Coverage falls into.
Hygon Information Technology 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.
Hygon Information Technology Co (SHSE:688041) has a Interest Coverage of 53.12 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hygon Information Technology Co and its competitors. This is 34% above median its historical median of 39.75. Over the past decade, Hygon Information Technology Co's Interest Coverage has ranged from 17.44 to 61.73. According to the industry distribution chart, Hygon Information Technology Co ranks #433 out of 1672 companies in the Hardware industry, placing it in the top 25.9%.
Is Hygon Information Technology Co's Interest Coverage too high?
Hygon Information Technology Co's current Interest Coverage of 53.12 is 34% above median its 10-year median of 39.75. Over the past 10 years, this metric has ranged from a low of 17.44 to a high of 61.73. The Hardware industry median Interest Coverage is 13.68. Hygon Information Technology Co's value of 53.12 is 288.4% above this industry median. Based on the distribution chart, Hygon Information Technology Co ranks #433 out of 1672 companies in the Hardware industry, which is above the industry midpoint. Overall, Hygon Information Technology Co has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hygon Information Technology Co's Interest Coverage compare to SNDK and DELL?
According to the Hardware industry distribution chart, Hygon Information Technology Co ranks #433 out of 1672 companies for Interest Coverage. This puts Hygon Information Technology Co in the upper half of its industry. The industry median Interest Coverage is 13.68. Hygon Information Technology Co's value of 53.12 is 288.4% above this benchmark. Historically, Hygon Information Technology Co's own Interest Coverage has ranged from 17.44 to 61.73 over the past decade. While the company's 10-year median is 39.75 vs. the industry median of 13.68, Hygon Information Technology 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.68, based on 1,672 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. Hygon Information Technology Co's current Interest Coverage of 53.12 is 288.4% 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 Hygon Information Technology Co and its competitors. For the Hardware industry, the median Interest Coverage is 13.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hygon Information Technology Co's current Interest Coverage is 53.12, which is 34% above median its own 10-year median of 39.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hygon Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hygon Information Technology Co (SHSE:688041) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥263.13, compared to a current price of ¥342.60 — trading 30.2% above its estimated fair value. The current Interest Coverage is 53.12, which is 34% above median its 10-year median of 39.75 and 288.4% above the Hardware industry median of 13.68. Hygon Information Technology Co's overall GF Score™ is 87/100 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 Hygon Information Technology Co (SHSE:688041), the current Interest Coverage is 53.12 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 Hygon Information Technology Co (SHSE:688041) Overvalued in 2026?
Based on GuruFocus' analysis, Hygon Information Technology Co stock appears to be overvalued.
The current stock price of ¥342.60 is trading 30.2% above its estimated GF Value™ of ¥263.13.
GuruFocus considers Hygon Information Technology Co to be Modestly Overvalued.
Key valuation signals for SHSE:688041:
Interest Coverage: 53.12 (34% above median its 10-year median of 39.75)
GF Value™: ¥263.13 vs. price of ¥342.60 (30.2% above fair value)
Industry Position: 288.4% above the Hardware median (#433 of 1672)
No single metric tells the full story. See the SHSE:688041 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hygon Information Technology Co Business Description
Hygon Information Technology Co Ltd is engaged in the research and development, design, and sales of high-end processors used in computing and storage devices such as servers and workstations. The company's products include Hygon central processing unit (CPU) and Hygon drive control unit (DCU).
87GF Score
Get the complete analysis for SHSE:688041
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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