Asahi Kasei (Asahi Kasei) Interest Coverage : 27.19 (As of Dec. 2023)

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What is Asahi Kasei 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. Asahi Kasei's Operating Income for the three months ended in Dec. 2023 was $296 Mil. Asahi Kasei's Interest Expense for the three months ended in Dec. 2023 was $-11 Mil. Asahi Kasei's interest coverage for the quarter that ended in Dec. 2023 was 27.19. The higher the ratio, the stronger the company's financial strength is.

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

AHKSF' s Interest Coverage Range Over the Past 10 Years
Min: 15.46 Med: 44.95 Max: 55.63
Current: 15.46

AHKSF's Interest Coverage is ranked better than
59.38% of 1189 companies
in the Chemicals industry
Industry Median: 9.85 vs AHKSF: 15.46

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

Asahi Kasei Interest Coverage Historical Data

The historical data trend for Asahi Kasei'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.

* Premium members only.

Asahi Kasei Interest Coverage Chart

Asahi Kasei Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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47.95

44.14

53.54

55.63

21.73

Asahi Kasei 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															20.72	5.31	14.52	19.09	27.19

Competitive Comparison of Asahi Kasei's Interest Coverage

For the Chemicals subindustry, Asahi Kasei'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.

Asahi Kasei's Interest Coverage Distribution in the Chemicals Industry

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

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

Asahi Kasei 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.

Asahi Kasei'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, Asahi Kasei's Interest Expense was $-44 Mil. Its Operating Income was $960 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,548 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	960.256	/	-44.193
	=	21.73

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

Here, for the three months ended in Dec. 2023, Asahi Kasei's Interest Expense was $-11 Mil. Its Operating Income was $296 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,709 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	295.955	/	-10.883
	=	27.19

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

Asahi Kasei (OTCPK:AHKSF) 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 .

Asahi Kasei Interest Coverage Related Terms

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

Asahi Kasei (Asahi Kasei) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Asahi Kasei Corp (OTCPK:AHKSF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AHKSY:USA 3407:Japan ASAA:Germany

Address

1-105 Kanda Jinbocho, Chiyoda-ku, Tokyo, JPN, 101-8101

Website

http://www.asahi-kasei.co.jp

Asahi Kasei Corp is a holding company that, through its subsidiaries, sells a variety of products and services. The firm is organized into four segments based on product or service. The chemicals and fibers segment, which generates the most revenue of any segment, sells ammonia-based products including plastic compounds and cellulose fiber. The homes and construction segment builds residential houses and sells thermal insulation. The electronics segment sells components for mobile phones including electronic compasses and lithium-ion battery separators. The healthcare segment sells medical devices including blood purification, blood transfusion, and bioprocess products. The majority of revenue comes from Japan.

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