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 Information Development Co's
Operating Income
for the
six
months ended in Mar. 2026 was 円1,926 Mil. Nippon Information Development Co's Interest Expense for the
six
months ended in Mar. 2026 was 円-1 Mil.
Nippon Information Development Co's interest coverage for the quarter that ended in Mar. 2026 was 2,588.40.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Nippon Information Development Co Ltd has no debt.
The historical rank and industry rank for Nippon Information Development Co's Interest Coverage or its related term are showing as below:
TSE:2349'
s Interest Coverage Range Over the Past 10 Years
Min: 1035.08 Med: 1975.41 Max: 2624.39
Current: 2624.39
TSE:2349's Interest Coverage is ranked better than 86.56% of 1704
companies
in the Software industry
Industry Median: 24.75
vs TSE:2349: 2624.39
Nippon Information Development Co (TSE:2349) 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 Information Development Co Interest Coverage Related Terms
Nippon Information Development Co Interest Coverage Historical Data
* 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.
Nippon Information Development Co Interest Coverage Chart
TSE:2349 vs IBM, ACN, FISV: Interest Coverage Comparison
For the Information Technology Services subindustry, Nippon Information Development 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 Information Development Co Interest Coverage vs Software Industry
For the Software industry and Technology sector, Nippon Information Development Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon Information Development Co's Interest Coverage falls into.
Nippon Information Development 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:
* 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 Information Development Co (TSE:2349) has a Interest Coverage of 2,588.40 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Information Development Co and its competitors. This is 31% above median its historical median of 1,975.41. Over the past decade, Nippon Information Development Co's Interest Coverage has ranged from 1,035.08 to 2,624.39. According to the industry distribution chart, Nippon Information Development Co ranks #229 out of 1704 companies in the Software industry, placing it in the top 13.4%.
Is Nippon Information Development Co's Interest Coverage too high?
Nippon Information Development Co's current Interest Coverage of 2,588.40 is 31% above median its 10-year median of 1,975.41. Over the past 10 years, this metric has ranged from a low of 1,035.08 to a high of 2,624.39. The Software industry median Interest Coverage is 24.75. Nippon Information Development Co's value of 2,588.40 is 10358.2% above this industry median. Based on the distribution chart, Nippon Information Development Co ranks #229 out of 1704 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Information Development Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nippon Information Development Co's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Nippon Information Development Co ranks #229 out of 1704 companies for Interest Coverage. This places Nippon Information Development Co in the top 13% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 24.75. Nippon Information Development Co's value of 2,588.40 is 10358.2% above this benchmark. Historically, Nippon Information Development Co's own Interest Coverage has ranged from 1,035.08 to 2,624.39 over the past decade. While the company's 10-year median is 1,975.41 vs. the industry median of 24.75, Nippon Information Development Co 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 Software company?
The median Interest Coverage among Software companies is 24.75, based on 1,704 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 Information Development Co's current Interest Coverage of 2,588.40 is 10358.2% 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 Information Development Co and its competitors. For the Software industry, the median Interest Coverage is 24.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Information Development Co's current Interest Coverage is 2,588.40, which is 31% above median its own 10-year median of 1,975.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Information Development Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Information Development Co (TSE:2349) is currently considered Fairly Valued. The stock's GF Value™ is 円2,538.18, compared to a current price of 円2,419.00 — trading 4.7% below its estimated fair value. The current Interest Coverage is 2,588.40, which is 31% above median its 10-year median of 1,975.41 and 10358.2% above the Software industry median of 24.75. Nippon Information Development Co's overall GF Score™ is 75/100 with 1 warning sign 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 Nippon Information Development Co (TSE:2349), the current Interest Coverage is 2,588.40 as of Mar. 2026. 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.
Is Nippon Information Development Co (TSE:2349) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Information Development Co stock appears to be undervalued.
The current stock price of 円2,419.00 is trading 4.7% below its estimated GF Value™ of 円2,538.18.
GuruFocus considers Nippon Information Development Co to be Fairly Valued.
Key valuation signals for TSE:2349:
Interest Coverage: 2,588.40 (31% above median its 10-year median of 1,975.41)
GF Value™: 円2,538.18 vs. price of 円2,419.00 (4.7% below fair value)
Industry Position: 10358.2% above the Software median (#229 of 1704)
No single metric tells the full story. See the TSE:2349 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Information Development Co Business Description
Nippon Information Development Co Ltd provides information technology services. It provides cloud solutions, financial system solutions, business system solutions, and embedded and control solutions.
75GF Score
Get the complete analysis for TSE:2349
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