Arakawa Chemical Industries (TSE:4968) Effective Interest Rate on Debt %: 1.27% (As of Jun. 2026)

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TSE:4968 Arakawa Chemical Industries Ltd TSE:4968
61 GF Score
Price 円2,465.00
GF Value 円1,311.41
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Arakawa Chemical Industries Effective Interest Rate on Debt %?

Arakawa Chemical Industries TSE:4968 +7.55% 61 Effective Interest Rate on Debt % is 1.27% as of Jun. 2026. GuruFocus rates TSE:4968 with a GF Score™ of 61/100 and a GF Value™ of 円1,311.41 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Arakawa Chemical Industries's annualized positive value of Interest Expense for the quarter that ended in Jun. 2026 was 円512 Mil. Arakawa Chemical Industries's average total debt for the quarter that ended in Jun. 2026 was 円40,460 Mil. Therefore, Arakawa Chemical Industries's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2026 was 1.27%.


Arakawa Chemical Industries  (TSE:4968) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Arakawa Chemical Industries Effective Interest Rate on Debt % Related Terms


Arakawa Chemical Industries Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Arakawa Chemical Industries's Effective Interest Rate on Debt % 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.

Arakawa Chemical Industries Effective Interest Rate on Debt % Chart

Arakawa Chemical Industries Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.65 0.72 0.85 0.96 1.19

Arakawa Chemical Industries Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.11 1.22 1.11 1.22 1.27

TSE:4968 vs LIN, SHW, ECL: Effective Interest Rate on Debt % Comparison

For the Specialty Chemicals subindustry, Arakawa Chemical Industries's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.


Arakawa Chemical Industries Effective Interest Rate on Debt % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Arakawa Chemical Industries's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Arakawa Chemical Industries's Effective Interest Rate on Debt % falls into.


TSE:4968
61GF Score
Arakawa Chemical Industries Ltd TSE:4968
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Arakawa Chemical Industries Effective Interest Rate on Debt % Calculation

Arakawa Chemical Industries's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Mar. 2025 )+Total Debt  (A: Mar. 2026 ))/ count )
=-1  *  -479/( (39484+40780)/ 2 )
=-1  *  -479/40132
=1.19 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=21061 + 18423
=39484

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=12907 + 27873
=40780

Arakawa Chemical Industries's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Mar. 2026 )+Total Debt  (Q: Jun. 2026 ))/ count )
=-1  *  -512/( (40780+40139)/ 2 )
=-1  *  -512/40459.5
=1.27 %

where

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=12907 + 27873
=40780

Total Debt  (Q: Jun. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=12205 + 27934
=40139

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Jun. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 1.27% mean?
Arakawa Chemical Industries (TSE:4968) has a Effective Interest Rate on Debt % of 1.27% as of Jun. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Arakawa Chemical Industries and its competitors.
Is Arakawa Chemical Industries' Effective Interest Rate on Debt % too high?
Arakawa Chemical Industries' current Effective Interest Rate on Debt % is 1.27%. Overall, Arakawa Chemical Industries has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arakawa Chemical Industries' Effective Interest Rate on Debt % compare to LIN and SHW?
Arakawa Chemical Industries' Effective Interest Rate on Debt % of 1.27% can be compared against companies in the Chemicals industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Chemicals company?
A good Effective Interest Rate on Debt % depends on the Chemicals industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Arakawa Chemical Industries and its competitors. Arakawa Chemical Industries's current Effective Interest Rate on Debt % is 1.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arakawa Chemical Industries stock overvalued right now?
Based on GuruFocus' analysis, Arakawa Chemical Industries (TSE:4968) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,311.41, compared to a current price of 円2,465.00 — trading 88% above its estimated fair value. The current Effective Interest Rate on Debt % is 1.27%. Arakawa Chemical Industries' overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Arakawa Chemical Industries (TSE:4968), the current Effective Interest Rate on Debt % is 1.27% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Arakawa Chemical Industries (TSE:4968) Overvalued in 2026?

Based on GuruFocus' analysis, Arakawa Chemical Industries stock appears to be overvalued. The current stock price of 円2,465.00 is trading 88% above its estimated GF Value™ of 円1,311.41. GuruFocus considers Arakawa Chemical Industries to be Significantly Overvalued.

Key valuation signals for TSE:4968:

  • Effective Interest Rate on Debt %: 1.27%
  • GF Value™: 円1,311.41 vs. price of 円2,465.00 (88% above fair value)
  • GF Score™: 61/100 with 6 warning signs

No single metric tells the full story. See the TSE:4968 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arakawa Chemical Industries Business Description

Address No. 3, No. 1, Hirano-cho, Chuo-ku, Osaka, JPN, 541-0046
Arakawa Chemical Industries Ltd is engaged in the production and sales of paper chemicals, resins for printing inks, resins for adhesives/adhesives, and intermediates for electronic materials. It manufactures various paper chemicals including water-repellents, sizing agents, paper surface improving agents, and paper strengthening, and other types of papers. It also provides printing inks for offset printing; book (magazine)-gravures and food-package-gravures. It also offers electronic materials, including rosins for use as raw material of chemicals and electronic components.
61GF Score

Get the complete analysis for TSE:4968

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円2,465.00
Price
円1,311.41
GF Value