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Nagase (TSE:8012) Interest Coverage : 8.54 (As of Mar. 2025)


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What is Nagase 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. Nagase's Operating Income for the three months ended in Mar. 2025 was 円8,081 Mil. Nagase's Interest Expense for the three months ended in Mar. 2025 was 円-946 Mil. Nagase's interest coverage for the quarter that ended in Mar. 2025 was 8.54. The higher the ratio, the stronger the company's financial strength is.

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

TSE:8012' s Interest Coverage Range Over the Past 10 Years
Min: 8.18   Med: 14.7   Max: 29.99
Current: 10.47


TSE:8012's Interest Coverage is ranked better than
51.73% of 1187 companies
in the Chemicals industry
Industry Median: 9.7 vs TSE:8012: 10.47

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


Nagase Interest Coverage Historical Data

The historical data trend for Nagase'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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Nagase Interest Coverage Chart

Nagase Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.60 29.99 10.39 8.18 10.47

Nagase Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 8.42 11.82 10.05 11.66 8.54

Competitive Comparison of Nagase's Interest Coverage

For the Specialty Chemicals subindustry, Nagase'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.


Nagase's Interest Coverage Distribution in the Chemicals Industry

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

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


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Nagase 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.

Nagase's Interest Coverage for the fiscal year that ended in Mar. 2025 is calculated as

Here, for the fiscal year that ended in Mar. 2025, Nagase's Interest Expense was 円-3,734 Mil. Its Operating Income was 円39,083 Mil. And its Long-Term Debt & Capital Lease Obligation was 円104,925 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*39083/-3734
=10.47

Nagase's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Nagase's Interest Expense was 円-946 Mil. Its Operating Income was 円8,081 Mil. And its Long-Term Debt & Capital Lease Obligation was 円104,925 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*8081/-946
=8.54

* 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.


Nagase  (TSE:8012) 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 .


Nagase Interest Coverage Related Terms

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


Nagase Business Description

Traded in Other Exchanges
N/A
Address
5-1, Nihonbashi-Kobunacho, Chuo-ku, Tokyo, JPN, 103-8355
Nagase & Co Ltd manufactures and sells a variety of products including chemicals, electronics, batteries, and personal care products. The firm organizes itself into five segments based on product type. The advanced materials and processing segment, which generates more revenue than any other segment, sells pigments, resins, and other materials used for auto paint, paper, cosmetics, and electronics. The functional materials segment sells a variety of chemicals and plastics. The electronics segment produces semiconductors and liquid crystal display materials. The automotive and energy segment sells automotive components and lithium-ion battery materials. The life and healthcare segment sells food additives, pharmaceuticals, and cosmetics. The majority of revenue comes from Asia.

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