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DWANGO Co., (TSE:3715) Interest Coverage : 366.57 (As of Jun. 2014)


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What is DWANGO 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. DWANGO Co.,'s Operating Income for the three months ended in Jun. 2014 was 円1,092 Mil. DWANGO Co.,'s Interest Expense for the three months ended in Jun. 2014 was 円-3 Mil. DWANGO Co.,'s interest coverage for the quarter that ended in Jun. 2014 was 366.57. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies interest coverage is at least 5. DWANGO Co., Ltd. has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:3715' s Interest Coverage Range Over the Past 10 Years
Min: 0   Med: 80.82   Max: 902.47
Current: 663.9


TSE:3715's Interest Coverage is not ranked
in the Software industry.
Industry Median: 28.965 vs TSE:3715: 663.90

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


DWANGO Co., Interest Coverage Historical Data

The historical data trend for DWANGO 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.

* Premium members only.

DWANGO Co., Interest Coverage Chart

DWANGO Co., Annual Data
Trend Sep08 Sep09 Sep10 Sep11 Sep12 Sep13
Interest Coverage
Get a 7-Day Free Trial 24.09 83.52 78.12 125.97 902.47

DWANGO Co., Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 766.76 3,872.86 3,113.45 503.61 366.57

Competitive Comparison of DWANGO Co.,'s Interest Coverage

For the Information Technology Services subindustry, DWANGO 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.


DWANGO Co.,'s Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, DWANGO Co.,'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where DWANGO Co.,'s Interest Coverage falls into.



DWANGO 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.

DWANGO Co.,'s Interest Coverage for the fiscal year that ended in Sep. 2013 is calculated as

Here, for the fiscal year that ended in Sep. 2013, DWANGO Co.,'s Interest Expense was 円-2 Mil. Its Operating Income was 円2,131 Mil. And its Long-Term Debt & Capital Lease Obligation was 円5 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2013 )/Interest Expense (A: Sep. 2013 )
=-1*2130.724/-2.361
=902.47

DWANGO Co.,'s Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the three months ended in Jun. 2014, DWANGO Co.,'s Interest Expense was 円-3 Mil. Its Operating Income was 円1,092 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,550 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2014 )/Interest Expense (Q: Jun. 2014 )
=-1*1092.374/-2.98
=366.57

* 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.


DWANGO Co.,  (TSE:3715) 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 .


DWANGO Co., Interest Coverage Related Terms

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DWANGO Co., (TSE:3715) Business Description

Traded in Other Exchanges
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Address
DWANGO Co., Ltd. provides Internet content through cellular phones. The Company also plans, develops and manages network entertainment systems.

DWANGO Co., (TSE:3715) Headlines

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