Hokuriku Electric Power Co (TSE:9505) Interest Coverage : 8.31 (As of Dec. 2023)

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What is Hokuriku Electric Power Co 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. Hokuriku Electric Power Co's Operating Income for the three months ended in Dec. 2023 was 円15,497 Mil. Hokuriku Electric Power Co's Interest Expense for the three months ended in Dec. 2023 was 円-1,864 Mil. Hokuriku Electric Power Co's interest coverage for the quarter that ended in Dec. 2023 was 8.31. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Hokuriku Electric Power Co's Interest Coverage or its related term are showing as below:

TSE:9505' s Interest Coverage Range Over the Past 10 Years
Min: 1.01 Med: 2.59 Max: 15.33
Current: 15.33

TSE:9505's Interest Coverage is ranked better than
80.45% of 445 companies
in the Utilities - Regulated industry
Industry Median: 3.77 vs TSE:9505: 15.33

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

Hokuriku Electric Power Co Interest Coverage Historical Data

The historical data trend for Hokuriku Electric Power 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.

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Hokuriku Electric Power Co Interest Coverage Chart

Hokuriku Electric Power Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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3.85

2.58

15.33

Hokuriku Electric Power Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															-	21.80	17.36	8.31	13.53

Competitive Comparison of Hokuriku Electric Power Co's Interest Coverage

For the Utilities - Regulated Electric subindustry, Hokuriku Electric Power 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.

Hokuriku Electric Power Co's Interest Coverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Hokuriku Electric Power Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hokuriku Electric Power Co's Interest Coverage falls into.

Hokuriku Electric Power 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.

Hokuriku Electric Power Co's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, Hokuriku Electric Power Co's Interest Expense was 円-7,498 Mil. Its Operating Income was 円114,911 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,089,803 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	114911	/	-7498
	=	15.33

Hokuriku Electric Power Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Hokuriku Electric Power Co's Interest Expense was 円-1,864 Mil. Its Operating Income was 円15,497 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,088,818 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	15497	/	-1864
	=	8.31

The higher the ratio, the stronger the company's Financial Strength is.

Hokuriku Electric Power Co (TSE:9505) 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 .

Hokuriku Electric Power Co Interest Coverage Related Terms

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

Hokuriku Electric Power Co (TSE:9505) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Hokuriku Electric Power Co Inc (TSE:9505) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

6HO:Germany

Address

15-1 Ushijima-cho, Toyama, JPN, 930-8686

Website

http://www.rikuden.co.jp

Hokuriku Electric Power Co Inc is an electric utility company that functions as a regulated monopoly in the Hokuriku region of Japan's main island of Honshu. Hokuriku Electric supplies electricity through power generation, transmission, and distribution. To do this, the company operates a portfolio of hydroelectric, thermal, and nuclear power plants located throughout Japan's Hokuriku region. Most of the total energy produced by Hokuriku Electric comes from its thermal facilities that utilize coal fuel sources. The company primarily generates revenue through the sale of electric power to residential and large-scale industrial customers in the machinery, chemical, and textile sectors.

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