Nippon Ski Resort Development Co (TSE:6040) Interest Coverage: 40.90 (As of Jan. 2026) — 70% Below 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:6040 Nippon Ski Resort Development Co Ltd TSE:6040
79 GF Score
Price 円503.00
GF Value 円565.28
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Nippon Ski Resort Development Co Interest Coverage?

Nippon Ski Resort Development Co TSE:6040 +0.20% 79 Interest Coverage is 40.90 as of Jan. 2026, which is 70% below its 10-year median of 138.64. GuruFocus rates TSE:6040 with a GF Score™ of 79/100 and a GF Value™ of 円565.28 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 607 Travel & Leisure companies, Nippon Ski Resort Development Co ranks better than 80.4% 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. Nippon Ski Resort Development Co's Operating Income for the six months ended in Jan. 2026 was 円1,026 Mil. Nippon Ski Resort Development Co's Interest Expense for the six months ended in Jan. 2026 was 円-25 Mil. Nippon Ski Resort Development Co's interest coverage for the quarter that ended in Jan. 2026 was 40.90. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Nippon Ski Resort Development Co's Interest Coverage or its related term are showing as below:

TSE:6040' s Interest Coverage Range Over the Past 10 Years
Min: 30.98   Med: 138.64   Max: 270.64
Current: 48.8


TSE:6040's Interest Coverage is ranked better than
80.4% of 607 companies
in the Travel & Leisure industry
Industry Median: 5.35 vs TSE:6040: 48.80

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


Nippon Ski Resort Development Co  (TSE:6040) 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 .


Nippon Ski Resort Development Co Interest Coverage Related Terms


Nippon Ski Resort Development Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Nippon Ski Resort Development 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.

Nippon Ski Resort Development Co Interest Coverage Chart

Nippon Ski Resort Development Co Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 30.98 138.64 70.21 67.87

Nippon Ski Resort Development Co Semi-Annual Data
Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25 Jul25 Jan26
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 80.86 63.30 81.25 58.84 40.90

TSE:6040 vs LVS, MGM, WYNN: Interest Coverage Comparison

For the Resorts & Casinos subindustry, Nippon Ski Resort Development 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.


Nippon Ski Resort Development Co Interest Coverage vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Nippon Ski Resort Development Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Nippon Ski Resort Development Co's Interest Coverage falls into.


TSE:6040
79GF Score
Nippon Ski Resort Development Co Ltd TSE:6040
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nippon Ski Resort Development 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.

Nippon Ski Resort Development Co's Interest Coverage for the fiscal year that ended in Jul. 2025 is calculated as

Here, for the fiscal year that ended in Jul. 2025, Nippon Ski Resort Development Co's Interest Expense was 円-33 Mil. Its Operating Income was 円2,246 Mil. And its Long-Term Debt & Capital Lease Obligation was 円2,683 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2025 )/Interest Expense (A: Jul. 2025 )
=-1*2246.087/-33.095
=67.87

Nippon Ski Resort Development Co's Interest Coverage for the quarter that ended in Jan. 2026 is calculated as

Here, for the six months ended in Jan. 2026, Nippon Ski Resort Development Co's Interest Expense was 円-25 Mil. Its Operating Income was 円1,026 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,363 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2026 )/Interest Expense (Q: Jan. 2026 )
=-1*1025.894/-25.084
=40.90

* 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 40.90 mean?
Nippon Ski Resort Development Co (TSE:6040) has a Interest Coverage of 40.90 as of Jan. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Ski Resort Development Co and its competitors. This is 70% below median its historical median of 138.64. Over the past decade, Nippon Ski Resort Development Co's Interest Coverage has ranged from 30.98 to 270.64. According to the industry distribution chart, Nippon Ski Resort Development Co ranks #119 out of 607 companies in the Travel & Leisure industry, placing it in the top 19.6%.
Is Nippon Ski Resort Development Co's Interest Coverage too high?
Nippon Ski Resort Development Co's current Interest Coverage of 40.90 is 70% below median its 10-year median of 138.64. Over the past 10 years, this metric has ranged from a low of 30.98 to a high of 270.64. The Travel & Leisure industry median Interest Coverage is 5.35. Nippon Ski Resort Development Co's value of 40.90 is 664.5% above this industry median. Based on the distribution chart, Nippon Ski Resort Development Co ranks #119 out of 607 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Ski Resort Development Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Ski Resort Development Co's Interest Coverage compare to LVS and MGM?
According to the Travel & Leisure industry distribution chart, Nippon Ski Resort Development Co ranks #119 out of 607 companies for Interest Coverage. This places Nippon Ski Resort Development Co in the top 20% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.35. Nippon Ski Resort Development Co's value of 40.90 is 664.5% above this benchmark. Historically, Nippon Ski Resort Development Co's own Interest Coverage has ranged from 30.98 to 270.64 over the past decade. While the company's 10-year median is 138.64 vs. the industry median of 5.35, Nippon Ski Resort Development Co 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 Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 607 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. Nippon Ski Resort Development Co's current Interest Coverage of 40.90 is 664.5% 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 Nippon Ski Resort Development Co and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Ski Resort Development Co's current Interest Coverage is 40.90, which is 70% below median its own 10-year median of 138.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Ski Resort Development Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Ski Resort Development Co (TSE:6040) is currently considered Modestly Undervalued. The stock's GF Value™ is 円565.28, compared to a current price of 円503.00 — trading 11% below its estimated fair value. The current Interest Coverage is 40.90, which is 70% below median its 10-year median of 138.64 and 664.5% above the Travel & Leisure industry median of 5.35. Nippon Ski Resort Development Co's overall GF Score™ is 79/100 with 3 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 Nippon Ski Resort Development Co (TSE:6040), the current Interest Coverage is 40.90 as of Jan. 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 Nippon Ski Resort Development Co (TSE:6040) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Ski Resort Development Co stock appears to be undervalued. The current stock price of 円503.00 is trading 11% below its estimated GF Value™ of 円565.28. GuruFocus considers Nippon Ski Resort Development Co to be Modestly Undervalued.

Key valuation signals for TSE:6040:

  • Interest Coverage: 40.90 (70% below median its 10-year median of 138.64)
  • GF Value™: 円565.28 vs. price of 円503.00 (11% below fair value)
  • GF Score™: 79/100 with 3 warning signs
  • Industry Position: 664.5% above the Travel & Leisure median (#119 of 607)

No single metric tells the full story. See the TSE:6040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nippon Ski Resort Development Co Business Description

Address 6329-1, Hokujo, Hakuba-mura Kitaazumi-gun, Nagano, JPN, 399-9301
Nippon Ski Resort Development Co Ltd engages in the management and operation of ski resorts, and relevant facilities and services. It also provides consulting and advisory services on ski resorts, including technical support, business support, rental business support, and other services.
79GF Score

Get the complete analysis for TSE:6040

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

円503.00
Price
円565.28
GF Value