Nissan Motor Co (Nissan Motor Co) Interest Coverage : 7.00 (As of Dec. 2023)

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What is Nissan Motor 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. Nissan Motor Co's Operating Income for the three months ended in Dec. 2023 was $984 Mil. Nissan Motor Co's Interest Expense for the three months ended in Dec. 2023 was $-140 Mil. Nissan Motor Co's interest coverage for the quarter that ended in Dec. 2023 was 7.00. The higher the ratio, the stronger the company's financial strength is.

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

NSANF' s Interest Coverage Range Over the Past 10 Years
Min: 4.42 Med: 21.91 Max: 52.54
Current: 7.53

NSANF's Interest Coverage is ranked worse than
51.07% of 1030 companies
in the Vehicles & Parts industry
Industry Median: 7.87 vs NSANF: 7.53

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

Nissan Motor Co Interest Coverage Historical Data

The historical data trend for Nissan Motor 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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Nissan Motor Co Interest Coverage Chart

Nissan Motor Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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23.61

4.42

5.98

Nissan Motor 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															7.97	5.47	7.15	9.95	7.00

Competitive Comparison of Nissan Motor Co's Interest Coverage

For the Auto Manufacturers subindustry, Nissan Motor 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.

Nissan Motor Co's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Nissan Motor Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Nissan Motor Co's Interest Coverage falls into.

Nissan Motor 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.

Nissan Motor 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, Nissan Motor Co's Interest Expense was $-472 Mil. Its Operating Income was $2,821 Mil. And its Long-Term Debt & Capital Lease Obligation was $31,103 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	2821.314	/	-471.667
	=	5.98

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

Here, for the three months ended in Dec. 2023, Nissan Motor Co's Interest Expense was $-140 Mil. Its Operating Income was $984 Mil. And its Long-Term Debt & Capital Lease Obligation was $30,697 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	983.682	/	-140.428
	=	7.00

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

Nissan Motor Co (OTCPK:NSANF) 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 .

Nissan Motor Co Interest Coverage Related Terms

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

Nissan Motor Co (Nissan Motor Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Nissan Motor Co Ltd (OTCPK:NSANF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

NSANY:USA 7201:Japan NISA:Germany NISA:Austria

Address

1-1, Takashima 1-chome, Nishi-ku, Yokohama-shi, Kanagawa, JPN, 220-8686

Website

http://www.nissan-global.com

While Nissan sold 3.3 million vehicles last fiscal year, total calendar 2022 Renault-Nissan-Mitsubishi alliance sales volume of 6.5 million vehicles makes the group the fourth-largest vehicle seller in the world, behind Toyota at 10.3 million, Volkswagen at 8.5 million, and Hyundai/Kia with 6.8 million vehicles sold. Nissan's financial services subsidiary provides consumers with auto loans and leases but also finances Nissan's sales to its dealerships (known as floor-plan financing). Nissan is 43.4% owned by Renault, while Nissan in turn owns 15% of Renault. Nissan also owns a 34% stake in Mitsubishi Motors. Under a new alliance agreement expected to be completed before the end of December 2023, Nissan and Renault will have cross-shareholding capped at 15% voting rights for each company.