Sekisui Kasei Co (TSE:4228) Interest Coverage : 0.62 (As of Dec. 2023)

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What is Sekisui Kasei 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. Sekisui Kasei Co's Operating Income for the three months ended in Dec. 2023 was 円153 Mil. Sekisui Kasei Co's Interest Expense for the three months ended in Dec. 2023 was 円-247 Mil. Sekisui Kasei Co's interest coverage for the quarter that ended in Dec. 2023 was 0.62. 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. Sekisui Kasei Co Ltd interest coverage is 1.43, which is low.

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

TSE:4228' s Interest Coverage Range Over the Past 10 Years
Min: 1.43 Med: 16.34 Max: 38.86
Current: 1.43

TSE:4228's Interest Coverage is ranked worse than
90.91% of 1177 companies
in the Chemicals industry
Industry Median: 9.89 vs TSE:4228: 1.43

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

Sekisui Kasei Co Interest Coverage Historical Data

The historical data trend for Sekisui Kasei 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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Sekisui Kasei Co Interest Coverage Chart

Sekisui Kasei Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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29.17

9.51

5.61

3.79

1.47

Sekisui Kasei Co 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															3.36	3.67	-	4.09	0.62

Competitive Comparison of Sekisui Kasei Co's Interest Coverage

For the Specialty Chemicals subindustry, Sekisui Kasei 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.

Sekisui Kasei Co's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sekisui Kasei Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sekisui Kasei Co's Interest Coverage falls into.

Sekisui Kasei 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.

Sekisui Kasei Co'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, Sekisui Kasei Co's Interest Expense was 円-538 Mil. Its Operating Income was 円793 Mil. And its Long-Term Debt & Capital Lease Obligation was 円25,094 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	793	/	-538
	=	1.47

Sekisui Kasei Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Sekisui Kasei Co's Interest Expense was 円-247 Mil. Its Operating Income was 円153 Mil. And its Long-Term Debt & Capital Lease Obligation was 円22,509 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	153	/	-247
	=	0.62

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

Sekisui Kasei Co (TSE:4228) 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 .

Sekisui Kasei Co Interest Coverage Related Terms

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

Sekisui Kasei Co (TSE:4228) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Sekisui Kasei Co Ltd (TSE:4228) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-4-4 Nishitenma, Kita-ku, Osaka, JPN, 530-8565

Website

http://www.sekisuikasei.com

Sekisui Kasei Co Ltd is a plastic provider solution company. The company is engaged in manufacture and sale of foamed plastic and other plastic products. It operates in two segments, Human Life, and Industry. The products in human life segment include Eslen beads, Eslen sheet, Eslen wood, Interforms, ES molded products such as ES Dan mat, Eslen block used in agricultural and fishery materials, food packaging materials, distribution materials, construction materials, civil engineering materials. The products in Industry segment are Pioceran, Literon, Neomicrolen, Serpet, Techpolymer, Technogel, Techheater, Elastil, Formac, ST-LAYER used in automotive materials, vehicle parts packaging, industrial materials, industrial packaging, electronic component materials, medical and health materials.

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