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Hunan Jiudian Pharmaceutical Co (SZSE:300705) Interest Coverage : 46.01 (As of Mar. 2025)


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What is Hunan Jiudian Pharmaceutical Co Interest Coverage?

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. Hunan Jiudian Pharmaceutical Co's Operating Income for the three months ended in Mar. 2025 was ¥148 Mil. Hunan Jiudian Pharmaceutical Co's Interest Expense for the three months ended in Mar. 2025 was ¥-3 Mil. Hunan Jiudian Pharmaceutical Co's interest coverage for the quarter that ended in Mar. 2025 was 46.01. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Hunan Jiudian Pharmaceutical Co's Interest Coverage or its related term are showing as below:

SZSE:300705' s Interest Coverage Range Over the Past 10 Years
Min: 15.37   Med: 34.44   Max: 114.73
Current: 35.43


SZSE:300705's Interest Coverage is ranked better than
67.02% of 655 companies
in the Drug Manufacturers industry
Industry Median: 11.83 vs SZSE:300705: 35.43

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Hunan Jiudian Pharmaceutical Co Interest Coverage Historical Data

The historical data trend for Hunan Jiudian Pharmaceutical 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.

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Hunan Jiudian Pharmaceutical Co Interest Coverage Chart

Hunan Jiudian Pharmaceutical Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.41 16.07 17.46 37.30 31.58

Hunan Jiudian Pharmaceutical Co Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.21 33.33 38.27 23.35 46.01

Competitive Comparison of Hunan Jiudian Pharmaceutical Co's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Hunan Jiudian 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.


Hunan Jiudian Pharmaceutical Co's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Hunan Jiudian Pharmaceutical Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hunan Jiudian Pharmaceutical Co's Interest Coverage falls into.


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Hunan Jiudian 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Hunan Jiudian Pharmaceutical Co's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Hunan Jiudian Pharmaceutical Co's Interest Expense was ¥-19 Mil. Its Operating Income was ¥588 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥294 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*588.446/-18.634
=31.58

Hunan Jiudian Pharmaceutical Co's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Hunan Jiudian Pharmaceutical Co's Interest Expense was ¥-3 Mil. Its Operating Income was ¥148 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥352 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*147.741/-3.211
=46.01

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Hunan Jiudian Pharmaceutical Co  (SZSE:300705) 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 .


Hunan Jiudian Pharmaceutical Co Interest Coverage Related Terms

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Hunan Jiudian Pharmaceutical Co Business Description

Traded in Other Exchanges
N/A
Address
No.1 Health Avenue, Hunan Liuyang Bio Pharmaceutical Park, Hunan, Changsha, CHN, 410329
Hunan Jiudian Pharmaceutical Co Ltd is a China-based pharmaceutical company specializing in research and development, manufacturing of pharmaceutical products, solid and liquid oral preparations and herbal extract products. It manufactures dirithromycin, levodropropizine and levocetirizine hydrochloride in China. The group's products include active pharmaceutical ingredients, herbal extracts, intermediaries, excipients and finished products.
Executives
Xiong Ying Executives
Zhu Zhi Hong Director
Duan Bin Supervisors
Liang Sheng Hua Supervisors
Zheng Xia Hui Directors, executives
Duan Li Xin Director
Zhu Zhi Yun Director
Li Min Secretary Dong
Fan Peng Yun Executives

Hunan Jiudian Pharmaceutical Co Headlines

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