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. Nippon Road Co's
Operating Income
for the
three
months ended in Mar. 2025 was 円2,817 Mil. Nippon Road Co's Interest Expense for the
three
months ended in Mar. 2025 was 円-11 Mil.
Nippon Road Co's interest coverage for the quarter that ended in Mar. 2025 was 256.09.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Nippon Road Co's Interest Coverage or its related term are showing as below:
TSE:1884's Interest Coverage is not ranked *
in the Construction industry.
Industry Median: 7.92 * Ranked among companies with meaningful Interest Coverage only.
Nippon Road Co (TSE:1884) 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 .
Nippon Road Co Interest Coverage Related Terms
Nippon Road Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nippon Road 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.
TSE:1884 vs PWR, EME, FIX: Interest Coverage Comparison
For the Engineering & Construction subindustry, Nippon Road 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.
Nippon Road Co Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Nippon Road Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon Road Co's Interest Coverage falls into.
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:
* 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.
Nippon Road Co (TSE:1884) has a Interest Coverage of 256.09 as of Mar. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Road Co and its competitors.
Is Nippon Road Co's Interest Coverage too high?
Nippon Road Co's current Interest Coverage is 256.09. The Construction industry median Interest Coverage is 7.92. Nippon Road Co's value of 256.09 is 3133.5% above this industry median. Overall, Nippon Road Co has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Road Co's Interest Coverage compare to PWR and EME?
Nippon Road Co's Interest Coverage of 256.09 can be compared against companies in the Construction industry. The industry median Interest Coverage is 7.92. Nippon Road Co's value of 256.09 is 3133.5% above this benchmark. 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 Construction company?
The median Interest Coverage among Construction companies is 7.92, based on 1,349 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. Nippon Road Co's current Interest Coverage of 256.09 is 3133.5% 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 Nippon Road Co and its competitors. For the Construction industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Road Co's current Interest Coverage is 256.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Road Co stock overvalued right now?
Nippon Road Co (TSE:1884) has a current Interest Coverage of 256.09. The current Interest Coverage is 256.09 and 3133.5% above the Construction industry median of 7.92. Nippon Road Co's overall GF Score™ is 17/100. 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 Nippon Road Co (TSE:1884), the current Interest Coverage is 256.09 as of Mar. 2025. 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.
Nippon Road Co Ltd is engaged in the business of general construction. The company is involved in the construction design, supervision, and management activities, road construction and paving work, general civil engineering works, building construction, construction of environmental, and sport and leisure facilities. In addition, it also manufactures and sells asphalt mixture materials and is also in the consulting business.
17GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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