Astellas Pharma (Astellas Pharma) Interest Coverage : 6.67 (As of Dec. 2023)

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Astellas Pharma Interest Coverage 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 by its Interest Expense. Astellas Pharma's Operating Income for the three months ended in Dec. 2023 was $131 Mil. Astellas Pharma's Interest Expense for the three months ended in Dec. 2023 was $-20 Mil. Astellas Pharma's interest coverage for the quarter that ended in Dec. 2023 was 6.67. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Astellas Pharma Inc interest coverage is 1.27, which is low.

The historical rank and industry rank for Astellas Pharma's Interest Coverage or its related term are showing as below:

ALPMY' s Interest Coverage Range Over the Past 10 Years
Min: 1.27 Med: 75.68 Max: 188.59
Current: 1.27

ALPMY's Interest Coverage is ranked worse than
88.15% of 692 companies
in the Drug Manufacturers industry
Industry Median: 11.925 vs ALPMY: 1.27

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

Astellas Pharma Interest Coverage Historical Data

The historical data trend for Astellas Pharma'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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Astellas Pharma Interest Coverage Chart

Astellas Pharma Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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188.58

81.77

58.06

26.46

14.99

Astellas Pharma 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															22.03	-	16.56	-	6.67

Competitive Comparison of Astellas Pharma's Interest Coverage

For the Drug Manufacturers - General subindustry, Astellas Pharma'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.

Astellas Pharma's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Astellas Pharma's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Astellas Pharma's Interest Coverage falls into.

Astellas Pharma 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.

Astellas Pharma'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, Astellas Pharma's Interest Expense was $-66 Mil. Its Operating Income was $984 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	*	984.234	/	-65.679
	=	14.99

Astellas Pharma's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Astellas Pharma's Interest Expense was $-20 Mil. Its Operating Income was $131 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,221 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	131.045	/	-19.655
	=	6.67

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

Astellas Pharma (OTCPK:ALPMY) 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 .

Astellas Pharma Interest Coverage Related Terms

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

Astellas Pharma (Astellas Pharma) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Astellas Pharma Inc (OTCPK:ALPMY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ALPMF:USA 4503:Mexico 4503:Japan YPHA:Germany

Address

2-5-1, Nihonbashi-Honcho, Chuo-ku, Tokyo, JPN, 103-8411

Website

http://www.astellas.com

Astellas Pharma Inc is a drug manufacturing company that sells pharmaceutical products across the globe. The vast majority of the company's revenue is derived from Japanese markets, followed by the Americas. Royalty income makes up a small percentage of Astellas' overall sales. Its largest therapeutic area by sales composition is oncology, followed by urology and transplantation. The company uses mergers and acquisitions as part of its long-term growth strategy. Astellas enters into strategic partnerships and licensing agreements to strengthen its commercialization platforms.