Dainichiseika Color & Chemicals Mfg Co (TSE:4116) Interest Coverage : 28.19 (As of Sep. 2024)

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What is Dainichiseika Color & Chemicals Mfg 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. Dainichiseika Color & Chemicals Mfg Co's Operating Income for the three months ended in Sep. 2024 was 円1,776 Mil. Dainichiseika Color & Chemicals Mfg Co's Interest Expense for the three months ended in Sep. 2024 was 円-63 Mil. Dainichiseika Color & Chemicals Mfg Co's interest coverage for the quarter that ended in Sep. 2024 was 28.19. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dainichiseika Color & Chemicals Mfg Co's Interest Coverage or its related term are showing as below:

TSE:4116' s Interest Coverage Range Over the Past 10 Years
Min: 9.1 Med: 16.6 Max: 30.64
Current: 27.47

TSE:4116's Interest Coverage is ranked better than
68.44% of 1185 companies
in the Chemicals industry
Industry Median: 10 vs TSE:4116: 27.47

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

Dainichiseika Color & Chemicals Mfg Co Interest Coverage Historical Data

The historical data trend for Dainichiseika Color & Chemicals Mfg 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.

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Dainichiseika Color & Chemicals Mfg Co Interest Coverage Chart

Dainichiseika Color & Chemicals Mfg Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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12.13

12.16

21.97

9.10

16.38

Dainichiseika Color & Chemicals Mfg Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Interest Coverage	Get a 7-Day Free Trial															26.83	13.80	27.85	28.19	42.02

Competitive Comparison of Dainichiseika Color & Chemicals Mfg Co's Interest Coverage

For the Specialty Chemicals subindustry, Dainichiseika Color & Chemicals Mfg 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.

Dainichiseika Color & Chemicals Mfg Co's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Dainichiseika Color & Chemicals Mfg Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dainichiseika Color & Chemicals Mfg Co's Interest Coverage falls into.

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Dainichiseika Color & Chemicals Mfg 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.

Dainichiseika Color & Chemicals Mfg Co's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, Dainichiseika Color & Chemicals Mfg Co's Interest Expense was 円-278 Mil. Its Operating Income was 円4,553 Mil. And its Long-Term Debt & Capital Lease Obligation was 円9,506 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	4553	/	-278
	=	16.38

Dainichiseika Color & Chemicals Mfg Co's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Dainichiseika Color & Chemicals Mfg Co's Interest Expense was 円-63 Mil. Its Operating Income was 円1,776 Mil. And its Long-Term Debt & Capital Lease Obligation was 円7,557 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	1776	/	-63
	=	28.19

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

Dainichiseika Color & Chemicals Mfg Co (TSE:4116) 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 .

Dainichiseika Color & Chemicals Mfg Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Dainichiseika Color & Chemicals Mfg Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Dainichiseika Color & Chemicals Mfg Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Dainichiseika Color & Chemicals Mfg Co Ltd (TSE:4116) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1-7-6, Nihonbashi-Bakurocho, Chuo-ku, Tokyo, JPN, 103-8383

Website

http://www.daicolor.co.jp

Dainichiseika Color & Chemicals Mfg Co Ltd manufactures and sells pigments, plastics, and inks in five segments based on product type. The polymers segment, which generates the majority of revenue, sells plastic resins used to produce interior components for automobiles, polyurethane coatings and adhesives, and textile coatings. The pigments segment sells inorganic pigments and colorants. The prepared colors and chemicals segment sells colorants used in plastics and coatings. The printing inks segment sells inks for printing and gravure. The other segment leases real estate properties.

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