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Nintendo Co Ltd (OTCPK:NTDOY)
Interest Coverage
10,000.00 (As of Mar. 2014)

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. Nintendo Co Ltd's Operating Income for the three months ended in Mar. 2014 was $-438 Mil. Nintendo Co Ltd's Interest Expense for the three months ended in Mar. 2014 was $0 Mil. Nintendo Co Ltd's interest coverage for the quarter that ended in Mar. 2014 was 10,000.00. The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

Nintendo Co Ltd has no debt.

NTDOY' s 10-Year Interest Coverage Range
Min: 9999.99   Max: 9999.99
Current: No Debt

During the past 13 years, the highest interest coverage of Nintendo Co Ltd was 9999.99. The lowest was 9999.99. And the median was 10000.00.

NTDOY's Interest Coverageis ranked higher than
98% of the 1081 Companies
in the Global Electronic Gaming & Multimedia industry.

( Industry Median: 554.09 vs. NTDOY: No Debt )

Definition

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

Nintendo Co Ltd did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt is 0, or Interest Expense is positive, then

Nintendo Co Ltd had no debt.

Nintendo Co Ltd's Interest Coverage for the fiscal year that ended in Mar. 2014 is calculated as

Here, for the fiscal year that ended in Mar. 2014, Nintendo Co Ltd's Interest Expense was $0 Mil. Its Operating Income was $-453 Mil. And its Long-Term Debt was $0 Mil.

Nintendo Co Ltd had no debt.

Nintendo Co Ltd's Interest Coverage for the quarter that ended in Mar. 2014 is calculated as

Here, for the three months ended in Mar. 2014, Nintendo Co Ltd's Interest Expense was $0 Mil. Its Operating Income was $-438 Mil. And its Long-Term Debt was $0 Mil.

Nintendo Co Ltd had no debt.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The higher the ratio, the stronger the company’s financial strength is.


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.


Related Terms

Operating Income, Interest Expense, Financial Strength


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nintendo Co Ltd Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
interest_coverage At LossAt LossAt LossNo Debt555,263.00No DebtNo DebtNo DebtNo DebtNo Debt

Nintendo Co Ltd Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
interest_coverage No DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo Debt
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