Kobe Steel (FRA:KST) Interest Coverage : 12.58 (As of Dec. 2023)

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What is Kobe Steel 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. Kobe Steel's Operating Income for the three months ended in Dec. 2023 was €294 Mil. Kobe Steel's Interest Expense for the three months ended in Dec. 2023 was €-23 Mil. Kobe Steel's interest coverage for the quarter that ended in Dec. 2023 was 12.58. The higher the ratio, the stronger the company's financial strength is.

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

FRA:KST' s Interest Coverage Range Over the Past 10 Years
Min: 0.73 Med: 5.73 Max: 11.84
Current: 11.84

FRA:KST's Interest Coverage is ranked better than
63.87% of 465 companies
in the Steel industry
Industry Median: 6.12 vs FRA:KST: 11.84

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

Kobe Steel Interest Coverage Historical Data

The historical data trend for Kobe Steel'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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Kobe Steel Interest Coverage Chart

Kobe Steel Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

5.28

1.07

2.64

6.62

6.47

Kobe Steel Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															9.87	9.22	9.71	15.59	12.58

Competitive Comparison of Kobe Steel's Interest Coverage

For the Steel subindustry, Kobe Steel'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.

Kobe Steel's Interest Coverage Distribution in the Steel Industry

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

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

Kobe Steel 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.

Kobe Steel's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Kobe Steel's Interest Expense was €-93 Mil. Its Operating Income was €603 Mil. And its Long-Term Debt & Capital Lease Obligation was €5,149 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	603.496	/	-93.236
	=	6.47

Kobe Steel's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Kobe Steel's Interest Expense was €-23 Mil. Its Operating Income was €294 Mil. And its Long-Term Debt & Capital Lease Obligation was €4,642 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	293.592	/	-23.329
	=	12.58

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

Kobe Steel (FRA:KST) 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 .

Kobe Steel Interest Coverage Related Terms

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

Kobe Steel (FRA:KST) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Kobe Steel Ltd (FRA:KST) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

KBSTF:USA 5406:Japan

Address

2-4, Wakinohama-Kaigandori 2-chome, Chuo-ku, Kobe, Hyogo, JPN, 651-8585

Website

http://www.kobelco.co.jp

Kobe Steel Ltd is a Japan-based company that is primarily engaged in iron and steel, aluminum and copper, construction machinery, nonconstruction machinery, and engineering businesses. Its iron and steel business involves production of steel products, steel casting and forging, and manufacturing of titanium and steel powder. Its aluminum and copper segment manufactures aluminum and copper products. Its construction machinery segment develops and manufactures construction equipment. The nonconstruction machinery segment offers industrial machinery, compressors and equipment for the nuclear and other energy industries. The engineering segment provides solutions to plants, power stations, and water treatment companies. Japan and China account for the majority of the company's revenue.

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