Sumitomo Rubber Industries (TSE:5110) Interest Coverage: 2.97 (As of Mar. 2026) — 57% Below Median

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TSE:5110 Sumitomo Rubber Industries Ltd TSE:5110
66 GF Score
Price 円2,271.00
GF Value 円1,437.03
Valuation Significantly Overvalued
! 7 Warning Signs
View Full Analysis

What is Sumitomo Rubber Industries Interest Coverage?

Sumitomo Rubber Industries TSE:5110 +1.36% 66 Interest Coverage is 2.97 as of Mar. 2026, which is 57% below its 10-year median of 6.88. GuruFocus rates TSE:5110 with a GF Score™ of 66/100 and a GF Value™ of 円1,437.03 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,067 Vehicles & Parts companies, Sumitomo Rubber Industries ranks worse than 93720.62% on this metric.

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. Sumitomo Rubber Industries's Operating Income for the three months ended in Mar. 2026 was 円15,066 Mil. Sumitomo Rubber Industries's Interest Expense for the three months ended in Mar. 2026 was 円-5,078 Mil. Sumitomo Rubber Industries's interest coverage for the quarter that ended in Mar. 2026 was 2.97. The higher the ratio, the stronger the company's financial strength is.

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


TSE:5110's Interest Coverage is not ranked *
in the Vehicles & Parts industry.
Industry Median: 8.36
* Ranked among companies with meaningful Interest Coverage only.

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


Sumitomo Rubber Industries  (TSE:5110) 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 .


Sumitomo Rubber Industries Interest Coverage Related Terms


Sumitomo Rubber Industries Interest Coverage Historical Data

* Premium members only.

The historical data trend for Sumitomo Rubber Industries'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.

Sumitomo Rubber Industries Interest Coverage Chart

Sumitomo Rubber Industries Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.82 3.71 4.71 8.10 8.36

Sumitomo Rubber Industries Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 1.13 1.85 7.35 0.00 2.97

TSE:5110 vs ORLY, AZO: Interest Coverage Comparison

For the Auto Parts subindustry, Sumitomo Rubber Industries'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.


Sumitomo Rubber Industries Interest Coverage vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Rubber Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sumitomo Rubber Industries's Interest Coverage falls into.


TSE:5110
66GF Score
Sumitomo Rubber Industries Ltd TSE:5110
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sumitomo Rubber Industries 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.

Sumitomo Rubber Industries's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Sumitomo Rubber Industries's Interest Expense was 円-4,392 Mil. Its Operating Income was 円36,711 Mil. And its Long-Term Debt & Capital Lease Obligation was 円215,943 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*36711/-4392
=8.36

Sumitomo Rubber Industries's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Sumitomo Rubber Industries's Interest Expense was 円-5,078 Mil. Its Operating Income was 円15,066 Mil. And its Long-Term Debt & Capital Lease Obligation was 円210,939 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*15066/-5078
=2.97

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.97 mean?
Sumitomo Rubber Industries (TSE:5110) has a Interest Coverage of 2.97 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sumitomo Rubber Industries and its competitors. This is 57% below median its historical median of 6.88. Over the past decade, Sumitomo Rubber Industries' Interest Coverage has ranged from 3.61 to 14.21. According to the industry distribution chart, Sumitomo Rubber Industries ranks #999999 out of 1067 companies in the Vehicles & Parts industry.
Is Sumitomo Rubber Industries' Interest Coverage too high?
Sumitomo Rubber Industries' current Interest Coverage of 2.97 is 57% below median its 10-year median of 6.88. Over the past 10 years, this metric has ranged from a low of 3.61 to a high of 14.21. The Vehicles & Parts industry median Interest Coverage is 8.36. Sumitomo Rubber Industries' value of 2.97 is 64.5% below this industry median. Based on the distribution chart, Sumitomo Rubber Industries ranks #999999 out of 1067 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Sumitomo Rubber Industries has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Rubber Industries' Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Sumitomo Rubber Industries ranks #999999 out of 1067 companies for Interest Coverage. This places Sumitomo Rubber Industries in the lower half of its industry. The industry median Interest Coverage is 8.36. Sumitomo Rubber Industries' value of 2.97 is 64.5% below this benchmark. Historically, Sumitomo Rubber Industries' own Interest Coverage has ranged from 3.61 to 14.21 over the past decade. While the company's 10-year median is 6.88 vs. the industry median of 8.36, Sumitomo Rubber Industries has consistently been below the industry average. 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.36, based on 1,067 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. Sumitomo Rubber Industries's current Interest Coverage of 2.97 is 64.5% below the industry median. 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 Sumitomo Rubber Industries and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Rubber Industries's current Interest Coverage is 2.97, which is 57% below median its own 10-year median of 6.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Rubber Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Rubber Industries (TSE:5110) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,437.03, compared to a current price of 円2,271.00 — trading 58% above its estimated fair value. The current Interest Coverage is 2.97, which is 57% below median its 10-year median of 6.88 and 64.5% below the Vehicles & Parts industry median of 8.36. Sumitomo Rubber Industries' overall GF Score™ is 66/100 with 7 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 Sumitomo Rubber Industries (TSE:5110), the current Interest Coverage is 2.97 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 Sumitomo Rubber Industries (TSE:5110) Overvalued in 2026?

Based on GuruFocus' analysis, Sumitomo Rubber Industries stock appears to be overvalued. The current stock price of 円2,271.00 is trading 58% above its estimated GF Value™ of 円1,437.03. GuruFocus considers Sumitomo Rubber Industries to be Significantly Overvalued.

Key valuation signals for TSE:5110:

  • Interest Coverage: 2.97 (57% below median its 10-year median of 6.88)
  • GF Value™: 円1,437.03 vs. price of 円2,271.00 (58% above fair value)
  • GF Score™: 66/100 with 7 warning signs
  • Industry Position: 64.5% below the Vehicles & Parts median (#999999 of 1067)

No single metric tells the full story. See the TSE:5110 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sumitomo Rubber Industries Business Description

Other Exchanges SMTUF:USA108:Germany
Address 3-6-9 Wakihamacho, Chuo-ku, Hyogo Prefecture, Kobe, JPN, 651-0072
Sumitomo Rubber Industries Ltd makes and sells rubber tires, sports equipment, and other products in three segments based on product type. The tire segment, which generates the majority of revenue, sells rubber tires for automobiles and motorcycles under the Dunlop and Falken brand names. The sports segment sells golf, tennis, and fitness equipment under the Srixon, XXIO, Cleveland, and Dunlop brand names. The industrial and other products segment sells rubber parts for printers, artificial turf for sporting use, floor coating materials, portable ramps, gloves, tubes, and valves. The majority of revenue comes from Japan than any other region.
66GF Score

Get the complete analysis for TSE:5110

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円2,271.00
Price
円1,437.03
GF Value