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Santen Pharmaceutical Co (STU:SZD) Interest Coverage : 16.85 (As of Sep. 2024)


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What is Santen Pharmaceutical Co 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. Santen Pharmaceutical Co's Operating Income for the three months ended in Sep. 2024 was €68 Mil. Santen Pharmaceutical Co's Interest Expense for the three months ended in Sep. 2024 was €-4 Mil. Santen Pharmaceutical Co's interest coverage for the quarter that ended in Sep. 2024 was 16.85. The higher the ratio, the stronger the company's financial strength is.

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

STU:SZD' s Interest Coverage Range Over the Past 10 Years
Min: 8.19   Med: 15.65   Max: 126.79
Current: 10.88


STU:SZD's Interest Coverage is ranked worse than
54.7% of 660 companies
in the Drug Manufacturers industry
Industry Median: 13.625 vs STU:SZD: 10.88

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


Santen Pharmaceutical Co Interest Coverage Historical Data

The historical data trend for Santen Pharmaceutical Co'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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Santen Pharmaceutical Co Interest Coverage Chart

Santen Pharmaceutical Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.01 8.19 29.68 - 14.47

Santen Pharmaceutical Co 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 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 25.41 15.73 1.42 32.33 16.85

Competitive Comparison of Santen Pharmaceutical Co's Interest Coverage

For the Drug Manufacturers - General subindustry, Santen Pharmaceutical Co'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.


Santen Pharmaceutical Co's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Santen Pharmaceutical Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Santen Pharmaceutical Co's Interest Coverage falls into.



Santen Pharmaceutical Co 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.

Santen Pharmaceutical Co'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, Santen Pharmaceutical Co's Interest Expense was €-16 Mil. Its Operating Income was €237 Mil. And its Long-Term Debt & Capital Lease Obligation was €0 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2024 )/Interest Expense (A: Mar. 2024 )
=-1*236.665/-16.359
=14.47

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

Here, for the three months ended in Sep. 2024, Santen Pharmaceutical Co's Interest Expense was €-4 Mil. Its Operating Income was €68 Mil. And its Long-Term Debt & Capital Lease Obligation was €0 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*67.546/-4.009
=16.85

* 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.


Santen Pharmaceutical Co  (STU:SZD) 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 .


Santen Pharmaceutical Co Interest Coverage Related Terms

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


Santen Pharmaceutical Co Business Description

Traded in Other Exchanges
Address
Grand Front Osaka Tower A, 4-20 Ofuka-cho, Kita-ku, Osaka, JPN, 530-8552
Santen Pharmaceutical Co Ltd is a drug manufacturing company that focuses on ophthalmic products. The company reports two primary operating segments: prescription ophthalmic pharmaceuticals and other. The pharmaceuticals segment includes over-the-counter pharmaceuticals, while the other segment includes medical devices. The vast majority of Santen's revenue is derived from its prescription ophthalmic pharmaceuticals segment, which manufactures and distributes prescription and OTC pharmaceuticals. Most of Santen's sales are generated in Japan, followed by other Asian countries.

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