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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. Abalance's
Operating Income
for the
three
months ended in Mar. 2026 was 円7,655 Mil. Abalance's Interest Expense for the
three
months ended in Mar. 2026 was 円394 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Abalance's Interest Coverage or its related term are showing as below:
TSE:3856'
s Interest Coverage Range Over the Past 10 Years
Min: 2.3 Med: 7.92 Max: 52.58
Current: 8.11
TSE:3856's Interest Coverage is ranked worse than 70% of 1710
companies
in the Software industry
Industry Median: 26.03
vs TSE:3856: 8.11
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 .
Abalance Interest Coverage Related Terms
Abalance Interest Coverage Historical Data
* Premium members only.
The historical data trend for Abalance'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:3856 vs CRM, SHOP, UBER: Interest Coverage Comparison
For the Software - Application subindustry, Abalance'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.
Abalance Interest Coverage vs Software Industry
For the Software industry and Technology sector, Abalance's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Abalance'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.
What does a Interest Coverage of 0 (At Loss) mean?
Abalance (TSE:3856) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Abalance and its competitors. Over the past decade, Abalance's Interest Coverage has ranged from 2.30 to 52.58. According to the industry distribution chart, Abalance ranks #1197 out of 1710 companies in the Software industry, placing it in the top 70%.
Is Abalance's Interest Coverage too high?
Abalance's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 52.58. Based on the distribution chart, Abalance ranks #1197 out of 1710 companies in the Software industry, which is below the industry midpoint. Overall, Abalance has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Abalance's Interest Coverage compare to CRM and SHOP?
According to the Software industry distribution chart, Abalance ranks #1197 out of 1710 companies for Interest Coverage. This places Abalance in the lower half of its industry. The industry median Interest Coverage is 26.03. Historically, Abalance's own Interest Coverage has ranged from 2.30 to 52.58 over the past decade. 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 26.03, based on 1,710 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. 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 Abalance and its competitors. For the Software industry, the median Interest Coverage is 26.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abalance's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abalance stock overvalued right now?
Based on GuruFocus' analysis, Abalance (TSE:3856) is currently considered Possible Value Trap. The stock's GF Value™ is 円835.13, compared to a current price of 円233.00 — trading 72.1% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Abalance's overall GF Score™ is 66/100 with 4 warning signs 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 Abalance (TSE:3856), the current Interest Coverage is 0 (At Loss) 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 Abalance (TSE:3856) Overvalued in 2026?
Based on GuruFocus' analysis, Abalance stock appears to be undervalued.
The current stock price of 円233.00 is trading 72.1% below its estimated GF Value™ of 円835.13.
GuruFocus considers Abalance to be Possible Value Trap.
Key valuation signals for TSE:3856:
Interest Coverage: 0 (At Loss)
GF Value™: 円835.13 vs. price of 円233.00 (72.1% below fair value)
No single metric tells the full story. See the TSE:3856 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abalance Corp is a Japan-based software company. It operates in three business divisions including Information technology (IT) division that provides outsourcing services and consulting, Solar power generation division is engaged in planning, manufacturing, import, export, and sale of products related to solar power generation system, smart grid system, and Construction machine sales business is engaged in the leasing and rental business of construction equipment in the Japan and overseas markets.
66GF Score
Get the complete analysis for TSE:3856
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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