Nalnet Communications (TSE:5870) Interest Coverage: 56.61 (As of Mar. 2026) — 64% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:5870 Nalnet Communications Inc TSE:5870
15 GF Score
Price 円826.00
! 1 Warning Sign
View Full Analysis

What is Nalnet Communications Interest Coverage?

Nalnet Communications TSE:5870 +3.38% 15 Interest Coverage is 56.61 as of Mar. 2026, which is 64% above its 10-year median of 34.56. GuruFocus rates TSE:5870 with a GF Score™ of 15/100. The stock has 1 warning sign investors should review. Among 1,067 Vehicles & Parts companies, Nalnet Communications ranks better than 81.63% 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. Nalnet Communications's Operating Income for the six months ended in Mar. 2026 was 円420 Mil. Nalnet Communications's Interest Expense for the six months ended in Mar. 2026 was 円-7 Mil. Nalnet Communications's interest coverage for the quarter that ended in Mar. 2026 was 56.61. The higher the ratio, the stronger the company's financial strength is.

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

TSE:5870' s Interest Coverage Range Over the Past 10 Years
Min: 10.72   Med: 34.56   Max: 52.98
Current: 52.98


TSE:5870's Interest Coverage is ranked better than
81.63% of 1067 companies
in the Vehicles & Parts industry
Industry Median: 8.41 vs TSE:5870: 52.98

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


Nalnet Communications  (TSE:5870) 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 .


Nalnet Communications Interest Coverage Related Terms


Nalnet Communications Interest Coverage Historical Data

* Premium members only.

The historical data trend for Nalnet Communications'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.

Nalnet Communications Interest Coverage Chart

Nalnet Communications Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
10.72 34.56 42.16 32.20 52.98

Nalnet Communications Semi-Annual Data
Mar22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Interest Coverage Get a 7-Day Free Trial 33.32 26.47 36.66 49.57 56.61

TSE:5870 vs CVNA, PAG, ALTB: Interest Coverage Comparison

For the Auto & Truck Dealerships subindustry, Nalnet Communications'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.


Nalnet Communications Interest Coverage vs Vehicles & Parts Industry

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

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


TSE:5870
15GF Score
Nalnet Communications Inc TSE:5870
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nalnet Communications 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.

Nalnet Communications's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Nalnet Communications's Interest Expense was 円-15 Mil. Its Operating Income was 円812 Mil. And its Long-Term Debt & Capital Lease Obligation was 円57 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*811.764/-15.321
=52.98

Nalnet Communications's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the six months ended in Mar. 2026, Nalnet Communications's Interest Expense was 円-7 Mil. Its Operating Income was 円420 Mil. And its Long-Term Debt & Capital Lease Obligation was 円57 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*420.324/-7.425
=56.61

* 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 56.61 mean?
Nalnet Communications (TSE:5870) has a Interest Coverage of 56.61 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nalnet Communications and its competitors. This is 64% above median its historical median of 34.56. Over the past decade, Nalnet Communications' Interest Coverage has ranged from 10.72 to 52.98. According to the industry distribution chart, Nalnet Communications ranks #196 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 18.4%.
Is Nalnet Communications' Interest Coverage too high?
Nalnet Communications' current Interest Coverage of 56.61 is 64% above median its 10-year median of 34.56. Over the past 10 years, this metric has ranged from a low of 10.72 to a high of 52.98. The Vehicles & Parts industry median Interest Coverage is 8.41. Nalnet Communications' value of 56.61 is 573.1% above this industry median. Based on the distribution chart, Nalnet Communications ranks #196 out of 1067 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Nalnet Communications has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Nalnet Communications' Interest Coverage compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Nalnet Communications ranks #196 out of 1067 companies for Interest Coverage. This places Nalnet Communications in the top 18% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.41. Nalnet Communications' value of 56.61 is 573.1% above this benchmark. Historically, Nalnet Communications' own Interest Coverage has ranged from 10.72 to 52.98 over the past decade. While the company's 10-year median is 34.56 vs. the industry median of 8.41, Nalnet Communications has consistently been above 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 8.41, 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. Nalnet Communications's current Interest Coverage of 56.61 is 573.1% above 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 Nalnet Communications and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nalnet Communications's current Interest Coverage is 56.61, which is 64% above median its own 10-year median of 34.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nalnet Communications stock overvalued right now?
Nalnet Communications (TSE:5870) has a current Interest Coverage of 56.61. The current Interest Coverage is 56.61, which is 64% above median its 10-year median of 34.56 and 573.1% above the Vehicles & Parts industry median of 8.41. Nalnet Communications' overall GF Score™ is 15/100 with 1 warning sign 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 Nalnet Communications (TSE:5870), the current Interest Coverage is 56.61 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.

Nalnet Communications Business Description

Address 5-1-16 Shimoichiba-cho, Aichi, Kasugai-shi, JPN, 486-0852
Nalnet Communications Inc is a vehicle management and maintenance management business for automobile-related companies such as auto leasing companies and individual users.
15GF Score

Get the complete analysis for TSE:5870

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

円826.00
Price