Toray Industries (Toray Industries) Interest Coverage : 4.69 (As of Dec. 2023)

View and export this data going back to 1983. Start your Free Trial

What is Toray Industries 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. Toray Industries's Operating Income for the three months ended in Dec. 2023 was $187 Mil. Toray Industries's Interest Expense for the three months ended in Dec. 2023 was $-40 Mil. Toray Industries's interest coverage for the quarter that ended in Dec. 2023 was 4.69. 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. Toray Industries Inc interest coverage is 4.41, which is low.

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

TRYIY' s Interest Coverage Range Over the Past 10 Years
Min: 4.41 Med: 19.61 Max: 31.56
Current: 4.41

TRYIY's Interest Coverage is ranked worse than
54.72% of 709 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.29 vs TRYIY: 4.41

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

Toray Industries Interest Coverage Historical Data

The historical data trend for Toray Industries'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.

* Premium members only.

Toray Industries Interest Coverage Chart

Toray Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

19.76

12.51

6.06

16.08

8.38

Toray Industries 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															5.70	2.54	4.69	5.55	4.69

Competitive Comparison of Toray Industries's Interest Coverage

For the Textile Manufacturing subindustry, Toray Industries'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.

Toray Industries's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Toray Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Toray Industries's Interest Coverage falls into.

Toray Industries 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.

Toray Industries'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, Toray Industries's Interest Expense was $-97 Mil. Its Operating Income was $815 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,213 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	815.483	/	-97.356
	=	8.38

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

Here, for the three months ended in Dec. 2023, Toray Industries's Interest Expense was $-40 Mil. Its Operating Income was $187 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,874 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	186.996	/	-39.894
	=	4.69

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

Toray Industries (OTCPK:TRYIY) 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 .

Toray Industries Interest Coverage Related Terms

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

Toray Industries (Toray Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Toray Industries Inc (OTCPK:TRYIY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TRYIF:USA 3402:Japan TOR1:Germany

Address

Nihonbashi Mitsui Tower 2-1-1, Nihonbashi Muromach, Chuo-ku, Tokyo, JPN, 103-8666

Website

http://www.toray.co.jp

Toray Industries Inc is a Japan-based company that is primarily engaged in the integrated chemical industry to produce apparel and industrial materials. The company's businesses consist of Fibers & Textiles, Plastics & Chemicals, IT-related Products, Carbon Fiber Composite Materials, Environment & Engineering, and Life Science. The Fibers & Textiles business and Plastics & Chemicals business are the company's core growth drivers, and they jointly contribute around two thirds of the company's revenue. The company has business presence in Japan, China, other Asian areas, Europe, North America, and other areas, with the whole Asia market accounting for majority of the company's total revenue.