HUTCHMED (China) (HUTCHMED (China)) Interest Coverage

: N/A (As of Dec. 2023)

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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. HUTCHMED (China)'s Operating Income for the six months ended in Dec. 2023 was $-93.3 Mil. HUTCHMED (China)'s Interest Expense for the six months ended in Dec. 2023 was $0.0 Mil. GuruFocus does not calculate 's interest coverage with the available data. 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. HUTCHMED (China) Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for HUTCHMED (China)'s Interest Coverage or its related term are showing as below:

HCM's Interest Coverage is not ranked ^*
in the Drug Manufacturers industry.
Industry Median: 12.35
* Ranked among companies with meaningful Interest Coverage only.

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

HUTCHMED (China) Interest Coverage Historical Data

The historical data trend for HUTCHMED (China)'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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HUTCHMED (China) Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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24.21

HUTCHMED (China) 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															N/A	N/A	N/A	N/A	N/A

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, HUTCHMED (China)'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.

HUTCHMED (China) Interest Coverage Distribution

For the Drug Manufacturers industry and Healthcare sector, HUTCHMED (China)'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where HUTCHMED (China)'s Interest Coverage falls into.

HUTCHMED (China) 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.

HUTCHMED (China)'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, HUTCHMED (China)'s Interest Expense was $-0.8 Mil. Its Operating Income was $18.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $51.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	18.375	/	-0.759
	=	24.21

HUTCHMED (China)'s Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, HUTCHMED (China)'s Interest Expense was $0.0 Mil. Its Operating Income was $-93.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $51.0 Mil.

GuruFocus does not calculate HUTCHMED (China)'s interest coverage with the available data.

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

HUTCHMED (China) (NAS:HCM) 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 .

HUTCHMED (China) Interest Coverage Related Terms

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HUTCHMED (China) (HUTCHMED (China)) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » HUTCHMED (China) Ltd (NAS:HCM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

00013:Hong Kong HCM.GB:UK HCM:UK H7T2:Germany

Address

2 Queen's Road Central, 48th Floor, Cheung Kong Center, Hong Kong, HKG

Website

https://www.hutch-med.com

HUTCHMED (China) Ltd is an innovative biopharmaceutical company engaged in the discovery, global development, and commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. The company has a portfolio of several cancer drug candidates currently in clinical studies around the world and extensive commercial infrastructure in its home market of China. The company operates in two reportable segments Oncology/Immunology, and Other Ventures.