NTT DOCOMO (BUE:DCM) Interest Coverage: 401.15 (As of Sep. 2020) — Near Median


What is NTT DOCOMO Interest Coverage?

NTT DOCOMO BUE:DCM 10 Interest Coverage is 401.15 as of Sep. 2020, which is 2% above its 10-year median of 392.12. GuruFocus rates BUE:DCM with a GF Score™ of 10/100. The stock has 5 warning signs investors should review.

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. NTT DOCOMO's Operating Income for the three months ended in Sep. 2020 was ARS199,973.19 Mil. NTT DOCOMO's Interest Expense for the three months ended in Sep. 2020 was ARS-498.50 Mil. NTT DOCOMO's interest coverage for the quarter that ended in Sep. 2020 was 401.15. The higher the ratio, the stronger the company's financial strength is.

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

BUE:DCM' s Interest Coverage Range Over the Past 10 Years
Min: 152.32   Med: 392.12   Max: 3454.67
Current: 259.66


BUE:DCM's Interest Coverage is not ranked
in the Telecommunication Services industry.
Industry Median: 4.685 vs BUE:DCM: 259.66

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


NTT DOCOMO  (BUE:DCM) 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 .


NTT DOCOMO Interest Coverage Related Terms


NTT DOCOMO Interest Coverage Historical Data

* Premium members only.

The historical data trend for NTT DOCOMO'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.

NTT DOCOMO Interest Coverage Chart

NTT DOCOMO Annual Data
Trend Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,563.89 3,454.67 152.32 159.00 153.82

NTT DOCOMO Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
Interest Coverage 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 443.83 197.24 161.35 279.42 401.15

BUE:DCM vs VZ, T, TMUS: Interest Coverage Comparison

For the Telecom Services subindustry, NTT DOCOMO'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.


NTT DOCOMO Interest Coverage vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, NTT DOCOMO's Interest Coverage distribution charts can be found below:

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



NTT DOCOMO 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.

NTT DOCOMO's Interest Coverage for the fiscal year that ended in Mar. 2020 is calculated as

Here, for the fiscal year that ended in Mar. 2020, NTT DOCOMO's Interest Expense was ARS-3,224.89 Mil. Its Operating Income was ARS496,051.47 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS129,839.18 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2020 )/Interest Expense (A: Mar. 2020 )
=-1*496051.469/-3224.894
=153.82

NTT DOCOMO's Interest Coverage for the quarter that ended in Sep. 2020 is calculated as

Here, for the three months ended in Sep. 2020, NTT DOCOMO's Interest Expense was ARS-498.50 Mil. Its Operating Income was ARS199,973.19 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS206,164.72 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2020 )/Interest Expense (Q: Sep. 2020 )
=-1*199973.189/-498.5
=401.15

* 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.

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

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 401.15 mean?
NTT DOCOMO (BUE:DCM) has a Interest Coverage of 401.15 as of Sep. 2020. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NTT DOCOMO and its competitors. This is near median its historical median of 392.12. Over the past decade, NTT DOCOMO's Interest Coverage has ranged from 152.32 to 3,454.67.
Is NTT DOCOMO's Interest Coverage too high?
NTT DOCOMO's current Interest Coverage of 401.15 is near median its 10-year median of 392.12. Over the past 10 years, this metric has ranged from a low of 152.32 to a high of 3,454.67. The Telecommunication Services industry median Interest Coverage is 4.69. NTT DOCOMO's value of 401.15 is 8462.4% above this industry median. Overall, NTT DOCOMO has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does NTT DOCOMO's Interest Coverage compare to VZ and T?
NTT DOCOMO's Interest Coverage of 401.15 can be compared against companies in the Telecommunication Services industry. The industry median Interest Coverage is 4.69. NTT DOCOMO's value of 401.15 is 8462.4% above this benchmark. Historically, NTT DOCOMO's own Interest Coverage has ranged from 152.32 to 3,454.67 over the past decade. While the company's 10-year median is 392.12 vs. the industry median of 4.69, NTT DOCOMO has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NTT DOCOMO's current Interest Coverage of 401.15 is 8462.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NTT DOCOMO and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NTT DOCOMO's current Interest Coverage is 401.15, which is near median its own 10-year median of 392.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTT DOCOMO stock overvalued right now?
NTT DOCOMO (BUE:DCM) has a current Interest Coverage of 401.15. The current Interest Coverage is 401.15, which is near median its 10-year median of 392.12 and 8462.4% above the Telecommunication Services industry median of 4.69. NTT DOCOMO's overall GF Score™ is 10/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For NTT DOCOMO (BUE:DCM), the current Interest Coverage is 401.15 as of Sep. 2020. 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.

NTT DOCOMO Business Description

Address Sanno Park Tower, 11-1, Nagata-cho 2-chome, Chiyoda-ku, Tokyo, JPN, 100-6150
NTT DoCoMo is Japan's largest wireless telephone operator. It has 78 million subscribers, leading to its market share of approximately 44%. The firm has been a technological leader, introducing wireless Internet access through its i-mode service in 1999, along with the ability to use a handset like a credit card. NTT DoCoMo also owns minority stakes in Philippine Long Distance Telephone, Hutchison Telecom Hong Kong Holdings, and other smaller phone companies. The firm's objective is to have the highest-quality network and customer service in Japan.