IHI (TSE:7013) Interest Coverage

: 3.83 (As of Dec. 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. IHI's Operating Income for the three months ended in Dec. 2023 was 円53,244 Mil. IHI's Interest Expense for the three months ended in Dec. 2023 was 円-13,912 Mil. IHI's interest coverage for the quarter that ended in Dec. 2023 was 3.83. The higher the ratio, the stronger the company's financial strength is.

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

TSE:7013's Interest Coverage is not ranked ^*
in the Industrial Products industry.
Industry Median: 13.49
* Ranked among companies with meaningful Interest Coverage only.

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

IHI Interest Coverage Historical Data

The historical data trend for IHI'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 25.56 [6] => 5.67 [7] => 5.48 [8] => 17.62 [9] => 7.34 )

IHI Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

25.56

5.67

5.48

17.62

7.34

IHI Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.71	15.36	1.81	-	3.83

Competitive Comparison

For the Specialty Industrial Machinery subindustry, IHI'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.

IHI Interest Coverage Distribution

For the Industrial Products industry and Industrials sector, IHI's Interest Coverage distribution charts can be found below:

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

IHI 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.

IHI'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, IHI's Interest Expense was 円-11,177 Mil. Its Operating Income was 円81,985 Mil. And its Long-Term Debt & Capital Lease Obligation was 円362,392 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	81985	/	-11177
	=	7.34

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

Here, for the three months ended in Dec. 2023, IHI's Interest Expense was 円-13,912 Mil. Its Operating Income was 円53,244 Mil. And its Long-Term Debt & Capital Lease Obligation was 円355,265 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	53244	/	-13912
	=	3.83

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

IHI (TSE:7013) 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 .

IHI Interest Coverage Related Terms

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

IHI (TSE:7013) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » IHI Corp (TSE:7013) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

IHICY:USA IHICF:USA IWJ:Germany

Address

1-1, Toyosu 3-chome, Koto-ku, Tokyo, JPN, 135-8710

Website

http://www.ihi.co.jp

IHI Corp produces power systems and plants, large steel structures, marine machinery, aerospace engines, and other industrial solutions. The global company attempts to develop innovative solutions and engineering capabilities for multiple projects and maintenance platforms. Its products cover a wide range of functions, including energy supply and distribution, urban development, enhancing manufacturing processes, and utilizing technologies for air travel. Revenues are roughly split between the company's four business areas: resources, energy, and environment; social infrastructure and offshore facilities; industrial systems and general-purpose machinery; and aero engine, space, and defense. Asia accounts for the majority of total sales, with China and Japan being key regions.

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