Zai LabZLAB +0.76%64 Interest Coverage is 0 (At Loss) as of Mar. 2026. GuruFocus rates ZLAB with a GF Score™ of 64/100 and a GF Value™ of $30.30 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 377 Biotechnology companies, Zai Lab ranks worse than 265251.72% 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. Zai Lab's
Operating Income
for the
three
months ended in Mar. 2026 was $-69.3 Mil. Zai Lab's Interest Expense for the
three
months ended in Mar. 2026 was $-1.6 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 Zai Lab's Interest Coverage or its related term are showing as below:
ZLAB's Interest Coverage is not ranked *
in the Biotechnology industry.
Industry Median: 106.07 * Ranked among companies with meaningful Interest Coverage only.
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 .
Zai Lab Interest Coverage Related Terms
Zai Lab Interest Coverage Historical Data
* Premium members only.
The historical data trend for Zai Lab'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.
ZLAB vs TYRA, TRVI, OCUL: Interest Coverage Comparison
For the Biotechnology subindustry, Zai Lab'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.
Zai Lab Interest Coverage vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zai Lab's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Zai Lab'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:
Zai Lab 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?
Zai Lab (ZLAB) 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 Zai Lab and its competitors. According to the industry distribution chart, Zai Lab ranks #999999 out of 377 companies in the Biotechnology industry.
Is Zai Lab's Interest Coverage too high?
Zai Lab's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Zai Lab ranks #999999 out of 377 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Zai Lab has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zai Lab's Interest Coverage compare to TYRA and TRVI?
According to the Biotechnology industry distribution chart, Zai Lab ranks #999999 out of 377 companies for Interest Coverage. This places Zai Lab in the lower half of its industry. The industry median Interest Coverage is 106.07. 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 Biotechnology company?
The median Interest Coverage among Biotechnology companies is 106.07, based on 377 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 Zai Lab and its competitors. For the Biotechnology industry, the median Interest Coverage is 106.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zai Lab'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 Zai Lab stock overvalued right now?
Based on GuruFocus' analysis, Zai Lab (ZLAB) is currently considered Possible Value Trap. The stock's GF Value™ is $30.30, compared to a current price of $18.52 — trading 38.9% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Zai Lab's overall GF Score™ is 64/100 with 8 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 Zai Lab (ZLAB), 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 Zai Lab (ZLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zai Lab stock appears to be undervalued.
The current stock price of $18.52 is trading 38.9% below its estimated GF Value™ of $30.30.
GuruFocus considers Zai Lab to be Possible Value Trap.
Key valuation signals for ZLAB:
Interest Coverage: 0 (At Loss)
GF Value™: $30.30 vs. price of $18.52 (38.9% below fair value)
No single metric tells the full story. See the ZLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. Zai Lab has a diverse pipeline of potentially first-in-class product candidates developed through in-house R&D and global partnerships. The company has successfully commercialized several products in China, including Zejula, Optune, Qinlock, and Nuzyra, with plans for further expansion The pipeline of proprietary drug candidates of the company includes ZL-1222, ZL-1311, ZL-6201 and many others.
64GF Score
Get the complete analysis for ZLAB
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ZLAB has been successfully added to your 
