Shibaura Machine Co (Shibaura Machine Co) Interest Coverage : 246.40 (As of Dec. 2023)

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What is Shibaura Machine 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. Shibaura Machine Co's Operating Income for the three months ended in Dec. 2023 was $10 Mil. Shibaura Machine Co's Interest Expense for the three months ended in Dec. 2023 was $-0 Mil. Shibaura Machine Co's interest coverage for the quarter that ended in Dec. 2023 was 246.40. 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. Shibaura Machine Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TSHMF' s Interest Coverage Range Over the Past 10 Years
Min: 4.61 Med: 32.17 Max: 62.93
Current: 62.93

TSHMF's Interest Coverage is ranked better than
76.28% of 2298 companies
in the Industrial Products industry
Industry Median: 13.58 vs TSHMF: 62.93

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

Shibaura Machine Co Interest Coverage Historical Data

The historical data trend for Shibaura Machine 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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Shibaura Machine Co Interest Coverage Chart

Shibaura Machine Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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47.39

43.64

4.61

36.24

26.35

Shibaura Machine 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															30.97	25.30	64.06	113.19	246.40

Competitive Comparison of Shibaura Machine Co's Interest Coverage

For the Specialty Industrial Machinery subindustry, Shibaura Machine 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.

Shibaura Machine Co's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shibaura Machine Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shibaura Machine Co's Interest Coverage falls into.

Shibaura Machine 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.

Shibaura Machine Co's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Shibaura Machine Co's Interest Expense was $-2 Mil. Its Operating Income was $43 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	43.168	/	-1.638
	=	26.35

Shibaura Machine Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Shibaura Machine Co's Interest Expense was $-0 Mil. Its Operating Income was $10 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	10.349	/	-0.042
	=	246.40

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

Shibaura Machine Co (OTCPK:TSHMF) 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 .

Shibaura Machine Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Shibaura Machine Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Shibaura Machine Co (Shibaura Machine Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Shibaura Machine Co Ltd (OTCPK:TSHMF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

6104:Japan TOA:Germany

Address

2068-3 Ooka, Shizuoka Prefecture, Numazu, JPN, 410-8510

Website

http://www.toshiba-machine.co.jp

Shibaura Machine is engaged in manufacturing and distribution of molding machineries and machine tools. The business of the company is divided into two segments: molding machinery and machine tools. The company's product portfolio comprises injection molding machines, die-casting machines, plastic extrusion, large-size machine tools, portal-type machine tools, machining centers, horizontal boring machines, and high-precision machines, among others. The company's products are used in manufacturing of computers, automobile engines, transmissions, medical products, high-precision lenses, displays, construction machines, and wind power generation. A vast majority of the company's revenue is generated by the molding machinery segment, and the company earns most of its revenue in Japan.

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