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Tohpe (TSE:4614) Interest Coverage : 1.39 (As of Mar. 2013)


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What is Tohpe 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. Tohpe's Operating Income for the three months ended in Mar. 2013 was 円44 Mil. Tohpe's Interest Expense for the three months ended in Mar. 2013 was 円-32 Mil. Tohpe's interest coverage for the quarter that ended in Mar. 2013 was 1.39. The higher the ratio, the stronger the company's financial strength is.

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

TSE:4614' s Interest Coverage Range Over the Past 10 Years
Min: 0   Med: 0   Max: 1.62
Current: 1.62

TSE:4614's Interest Coverage is not ranked
in the Chemicals industry.
Industry Median: 9.885 vs TSE:4614: 1.62

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

Tohpe Interest Coverage Historical Data

The historical data trend for Tohpe'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.

Tohpe Interest Coverage Chart

Tohpe Annual Data
Trend Mar08 Mar09 Mar10 Mar11 Mar12 Mar13
Interest Coverage
Get a 7-Day Free Trial - - 0.43 - 1.62

Tohpe Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13
Interest Coverage Get a 7-Day Free Trial Premium Member Only - 1.17 3.29 0.67 1.39

Competitive Comparison of Tohpe's Interest Coverage

For the Specialty Chemicals subindustry, Tohpe'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.

Tohpe's Interest Coverage Distribution in the Chemicals Industry

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

* The bar in red indicates where Tohpe's Interest Coverage falls into.


Tohpe 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.

Tohpe's Interest Coverage for the fiscal year that ended in Mar. 2013 is calculated as

Here, for the fiscal year that ended in Mar. 2013, Tohpe's Interest Expense was 円-135 Mil. Its Operating Income was 円219 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,083 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2013 )/Interest Expense (A: Mar. 2013 )
=-1*219.018/-134.961
=1.62

Tohpe's Interest Coverage for the quarter that ended in Mar. 2013 is calculated as

Here, for the three months ended in Mar. 2013, Tohpe's Interest Expense was 円-32 Mil. Its Operating Income was 円44 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,083 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2013 )/Interest Expense (Q: Mar. 2013 )
=-1*44.065/-31.775
=1.39

* 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.

Tohpe  (TSE:4614) 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 .

Tohpe Interest Coverage Related Terms

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

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