Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613) Interest Coverage : 96.33 (As of Dec. 2023)

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What is Beijing Tong Ren Tang Chinese Medicine 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. Beijing Tong Ren Tang Chinese Medicine Co's Operating Income for the six months ended in Dec. 2023 was HK$319 Mil. Beijing Tong Ren Tang Chinese Medicine Co's Interest Expense for the six months ended in Dec. 2023 was HK$-3 Mil. Beijing Tong Ren Tang Chinese Medicine Co's interest coverage for the quarter that ended in Dec. 2023 was 96.33. 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. Beijing Tong Ren Tang Chinese Medicine Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Beijing Tong Ren Tang Chinese Medicine Co's Interest Coverage or its related term are showing as below:

HKSE:03613' s Interest Coverage Range Over the Past 10 Years
Min: 106.86 Med: 1131.34 Max: 36681.11
Current: 106.86

HKSE:03613's Interest Coverage is ranked better than
78.9% of 673 companies
in the Drug Manufacturers industry
Industry Median: 12.56 vs HKSE:03613: 106.86

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

Beijing Tong Ren Tang Chinese Medicine Co Interest Coverage Historical Data

The historical data trend for Beijing Tong Ren Tang Chinese Medicine 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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Beijing Tong Ren Tang Chinese Medicine Co Interest Coverage Chart

Beijing Tong Ren Tang Chinese Medicine Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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154.42

156.01

166.36

174.92

106.86

Beijing Tong Ren Tang Chinese Medicine Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															176.33	117.24	238.99	119.91	96.33

Competitive Comparison of Beijing Tong Ren Tang Chinese Medicine Co's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Beijing Tong Ren Tang Chinese Medicine 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.

Beijing Tong Ren Tang Chinese Medicine Co's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Beijing Tong Ren Tang Chinese Medicine Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Beijing Tong Ren Tang Chinese Medicine Co's Interest Coverage falls into.

Beijing Tong Ren Tang Chinese Medicine 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.

Beijing Tong Ren Tang Chinese Medicine 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, Beijing Tong Ren Tang Chinese Medicine Co's Interest Expense was HK$-6 Mil. Its Operating Income was HK$639 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$75 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	638.804	/	-5.978
	=	106.86

Beijing Tong Ren Tang Chinese Medicine Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Beijing Tong Ren Tang Chinese Medicine Co's Interest Expense was HK$-3 Mil. Its Operating Income was HK$319 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$75 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	318.759	/	-3.309
	=	96.33

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

Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613) 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 .

Beijing Tong Ren Tang Chinese Medicine Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Beijing Tong Ren Tang Chinese Medicine Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Beijing Tong Ren Tang Chinese Medicine Co Ltd (HKSE:03613) » Definitions » Interest Coverage

Traded in Other Exchanges

TQR:Germany

Address

Convention Plaza, 1 Harbour Road, Room 1405-1409, Office Tower, Wanchai, Hong Kong, HKG

Website

https://cm.tongrentang.com

Beijing Tong Ren Tang Chinese Medicine Co Ltd is a pharmaceutical retailer that specializes in Chinese medicine operating in three segments; Hong Kong includes the sale of Chinese medicine products and healthcare products and the provision of Chinese medical consultation and treatments through retail and wholesale of Chinese medicine products and healthcare products, Mainland China (PRC, but excluding Hong Kong, Macao, and Taiwan) includes wholesale of healthcare products in Mainland China and the sole distributor of Tong Ren Tang branded products of Tong Ren Tang Technologies and Tong Ren Tang Ltd, and Overseas includes retail and wholesale of Chinese medicine products and healthcare products and provision of Chinese medical consultation and treatments.

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