AEON Co (AEON Co) Interest Coverage

: 2.52 (As of Nov. 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. AEON Co's Operating Income for the three months ended in Nov. 2023 was $168 Mil. AEON Co's Interest Expense for the three months ended in Nov. 2023 was $-67 Mil. AEON Co's interest coverage for the quarter that ended in Nov. 2023 was 2.52. The higher the ratio, the stronger the company's financial strength is.

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

AONNF' s Interest Coverage Range Over the Past 10 Years
Min: 4.66 Med: 8.77 Max: 13.72
Current: 6.42

AONNF's Interest Coverage is ranked worse than
55.25% of 753 companies
in the Retail - Cyclical industry
Industry Median: 7.85 vs AONNF: 6.42

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

AEON Co Interest Coverage Historical Data

The historical data trend for AEON 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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AEON Co Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Interest Coverage

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6.78

4.66

5.04

5.87

6.42

AEON Co Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Interest Coverage	Get a 7-Day Free Trial															10.77	5.49	6.82	2.52	10.80

Competitive Comparison

For the Department Stores subindustry, AEON 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.

AEON Co Interest Coverage Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, AEON Co's Interest Coverage distribution charts can be found below:

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

AEON 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.

AEON Co's Interest Coverage for the fiscal year that ended in Feb. 2024 is calculated as

Here, for the fiscal year that ended in Feb. 2024, AEON Co's Interest Expense was $-261 Mil. Its Operating Income was $1,676 Mil. And its Long-Term Debt & Capital Lease Obligation was $16,919 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Feb. 2024 )	/	Interest Expense (A: Feb. 2024 )
	=	-1	*	1676.483	/	-261.11
	=	6.42

AEON Co's Interest Coverage for the quarter that ended in Nov. 2023 is calculated as

Here, for the three months ended in Nov. 2023, AEON Co's Interest Expense was $-67 Mil. Its Operating Income was $168 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,595 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Nov. 2023 )	/	Interest Expense (Q: Nov. 2023 )
	=	-1	*	168.36	/	-66.763
	=	2.52

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

AEON Co (OTCPK:AONNF) 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 .

AEON Co Interest Coverage Related Terms

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AEON Co (AEON Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » AEON Co Ltd (OTCPK:AONNF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AONNY:USA 8267:Japan JUS1:Germany

Address

1-5-1 Nakase, Minami-ku, Chiba-shi, Chiba, JPN, 261-8515

Website

http://www.aeon.info

AEON Co Ltd is the holding company of Aeon Group, integrated Japanese retailer, and is active not only in Japan but also throughout countries in the Association of Southeast Asian Nations and China. The business is segmented in four main divisions: supermarket and discount store, drugstore and pharmacy, shopping-center development, and financial sevices. The company's core operations are general merchandise store, supermarket, and convenience-store operations. Aeon is also active in specialty store operations, shopping-center development and operations, and credit card business and services.