LIXIL (JSGRY) Interest Coverage : 2.62 (As of Sep. 2024)

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What is LIXIL 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. LIXIL's Operating Income for the three months ended in Sep. 2024 was $72 Mil. LIXIL's Interest Expense for the three months ended in Sep. 2024 was $-28 Mil. LIXIL's interest coverage for the quarter that ended in Sep. 2024 was 2.62. 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. LIXIL Corp interest coverage is 1.29, which is low.

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

JSGRY' s Interest Coverage Range Over the Past 10 Years
Min: 1.24 Med: 3.72 Max: 11.29
Current: 1.29

JSGRY's Interest Coverage is ranked worse than
87.94% of 1294 companies
in the Construction industry
Industry Median: 6.795 vs JSGRY: 1.29

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

LIXIL Interest Coverage Historical Data

The historical data trend for LIXIL'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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LIXIL Interest Coverage Chart

LIXIL Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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4.42

4.35

11.29

3.01

1.24

LIXIL Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Interest Coverage	Get a 7-Day Free Trial															1.24	5.36	-	-	2.62

Competitive Comparison of LIXIL's Interest Coverage

For the Building Products & Equipment subindustry, LIXIL'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.

LIXIL's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, LIXIL's Interest Coverage distribution charts can be found below:

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

LIXIL 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.

LIXIL's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, LIXIL's Interest Expense was $-88 Mil. Its Operating Income was $109 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,996 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	109.139	/	-88.073
	=	1.24

LIXIL's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, LIXIL's Interest Expense was $-28 Mil. Its Operating Income was $72 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,187 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	72.485	/	-27.687
	=	2.62

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

LIXIL (OTCPK:JSGRY) 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 .

LIXIL Interest Coverage Related Terms

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

LIXIL Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » LIXIL Corp (OTCPK:JSGRY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

5938:Japan TJS:Germany

Address

Osaki Garden Tower, 1-1 Nishi-Shinagawa 1-chome, Shinagawa-ku, Tokyo, JPN, 141-0033

Website

https://www.lixil-group.co.jp

LIXIL Corp manufactures and sells building and housing materials globally through two primary segments based on location. The company's product portfolio includes building materials, doors, shutters, plumbing fixtures, equipment, curtain walls, faucets, and bathtubs. The domestic business segment, which generates the majority of revenue, sells its products throughout Japan through retail and distribution centers. The segment also sells and manages real estate. The overseas business segment sells products throughout Asia and North America. Bathroom products in North America are sold under the American Standard brand.