Shanghai Fosun Pharmaceutical (Group) Co (HKSE:02196) Interest Coverage : 0.23 (As of Dec. 2023)

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What is Shanghai Fosun Pharmaceutical (Group) 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. Shanghai Fosun Pharmaceutical (Group) Co's Operating Income for the three months ended in Dec. 2023 was HK$96 Mil. Shanghai Fosun Pharmaceutical (Group) Co's Interest Expense for the three months ended in Dec. 2023 was HK$-413 Mil. Shanghai Fosun Pharmaceutical (Group) Co's interest coverage for the quarter that ended in Dec. 2023 was 0.23. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Shanghai Fosun Pharmaceutical (Group) Co Ltd interest coverage is 1.18, which is low.

The historical rank and industry rank for Shanghai Fosun Pharmaceutical (Group) Co's Interest Coverage or its related term are showing as below:

HKSE:02196' s Interest Coverage Range Over the Past 10 Years
Min: 1.18 Med: 3.17 Max: 3.99
Current: 1.18

HKSE:02196's Interest Coverage is ranked worse than
89.29% of 691 companies
in the Drug Manufacturers industry
Industry Median: 11.83 vs HKSE:02196: 1.18

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

Shanghai Fosun Pharmaceutical (Group) Co Interest Coverage Historical Data

The historical data trend for Shanghai Fosun Pharmaceutical (Group) 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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Shanghai Fosun Pharmaceutical (Group) Co Interest Coverage Chart

Shanghai Fosun Pharmaceutical (Group) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.43

3.21

3.29

3.77

1.18

Shanghai Fosun Pharmaceutical (Group) Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.14	3.85	1.32	-	0.23

Competitive Comparison of Shanghai Fosun Pharmaceutical (Group) Co's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Shanghai Fosun Pharmaceutical (Group) 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.

Shanghai Fosun Pharmaceutical (Group) Co's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Shanghai Fosun Pharmaceutical (Group) Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shanghai Fosun Pharmaceutical (Group) Co's Interest Coverage falls into.

Shanghai Fosun Pharmaceutical (Group) 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.

Shanghai Fosun Pharmaceutical (Group) Co's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Shanghai Fosun Pharmaceutical (Group) Co's Interest Expense was HK$-1,449 Mil. Its Operating Income was HK$1,710 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$17,013 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1709.931	/	-1449.072
	=	1.18

Shanghai Fosun Pharmaceutical (Group) Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Shanghai Fosun Pharmaceutical (Group) Co's Interest Expense was HK$-413 Mil. Its Operating Income was HK$96 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$17,013 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	95.833	/	-412.53
	=	0.23

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

Shanghai Fosun Pharmaceutical (Group) Co (HKSE:02196) 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 .

Shanghai Fosun Pharmaceutical (Group) Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Shanghai Fosun Pharmaceutical (Group) Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Shanghai Fosun Pharmaceutical (Group) Co (HKSE:02196) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Shanghai Fosun Pharmaceutical (Group) Co Ltd (HKSE:02196) » Definitions » Interest Coverage

Traded in Other Exchanges

SFOSF:USA 08HH:Germany 600196:China

Address

No. 1289 Yishan Road, Building A, Fosun Technology Park, Shanghai, CHN, 200233

Website

https://www.fosunpharma.com

Shanghai Fosun Pharmaceutical (Group) Co Ltd is a specialty and generic drug manufacturing company. Shanghai Fosun maintains five business segments, including Pharmaceutical manufacturing, Healthcare Services, Medical devices, and medical diagnosis. Most of the company's revenue is generated by its Pharmaceutical manufacturing segment. The company considers merger and acquisition investment as a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.

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