NMS Holdings (TSE:2162) Interest Coverage : 3.06 (As of Dec. 2023)

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What is NMS Holdings 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. NMS Holdings's Operating Income for the three months ended in Dec. 2023 was 円611 Mil. NMS Holdings's Interest Expense for the three months ended in Dec. 2023 was 円-200 Mil. NMS Holdings's interest coverage for the quarter that ended in Dec. 2023 was 3.06. 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. NMS Holdings Corp interest coverage is 2.92, which is low.

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

TSE:2162' s Interest Coverage Range Over the Past 10 Years
Min: 2.33 Med: 4 Max: 33.27
Current: 2.92

TSE:2162's Interest Coverage is ranked worse than
81.21% of 1570 companies
in the Hardware industry
Industry Median: 12.685 vs TSE:2162: 2.92

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

NMS Holdings Interest Coverage Historical Data

The historical data trend for NMS Holdings'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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NMS Holdings Interest Coverage Chart

NMS Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

2.96

3.42

2.88

4.00

NMS Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															7.64	6.28	2.97	0.08	3.06

Competitive Comparison of NMS Holdings's Interest Coverage

For the Electronic Components subindustry, NMS Holdings'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.

NMS Holdings's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, NMS Holdings's Interest Coverage distribution charts can be found below:

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

NMS Holdings 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.

NMS Holdings's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, NMS Holdings's Interest Expense was 円-385 Mil. Its Operating Income was 円1,538 Mil. And its Long-Term Debt & Capital Lease Obligation was 円7,436 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	1537.593	/	-384.584
	=	4.00

NMS Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, NMS Holdings's Interest Expense was 円-200 Mil. Its Operating Income was 円611 Mil. And its Long-Term Debt & Capital Lease Obligation was 円6,842 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	610.52	/	-199.84
	=	3.06

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

NMS Holdings (TSE:2162) 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 .

NMS Holdings Interest Coverage Related Terms

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

NMS Holdings (TSE:2162) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » NMS Holdings Corp (TSE:2162) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Tokyo Opera City Tower 45 Floor, 3-20-2 Nishi-shinjuku, Shinjuku-ku, Tokyo, JPN, 163-1445

Website

http://www.n-ms.co.jp

NMS Holdings Corp is a Japan-based company. Its business activities are divided into four operating segments including Human resource solution business, Electronics manufacturing service (EMS) business, Vision ( neo EMS ), and Power supply business. The company offers staff members for contract manufacturing, engineer dispatch service, repairs and customer service. Its EMS business offers a wide range of services concerning board assembly through an integrated production process and firm management system. NMS also offers solutions for power supply and power supply-related products.

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