East Japan Railway Co (East Japan Railway Co) Interest Coverage

: 5.90 (As of Dec. 2023)

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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. East Japan Railway Co's Operating Income for the three months ended in Dec. 2023 was $741 Mil. East Japan Railway Co's Interest Expense for the three months ended in Dec. 2023 was $-126 Mil. East Japan Railway Co's interest coverage for the quarter that ended in Dec. 2023 was 5.90. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. East Japan Railway Co interest coverage is 4.8, which is low.

The historical rank and industry rank for East Japan Railway Co's Interest Coverage or its related term are showing as below:

EJPRY' s Interest Coverage Range Over the Past 10 Years
Min: 2.21 Med: 6.33 Max: 7.75
Current: 4.8

EJPRY's Interest Coverage is ranked worse than
54.91% of 814 companies
in the Transportation industry
Industry Median: 5.685 vs EJPRY: 4.80

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

East Japan Railway Co Interest Coverage Historical Data

The historical data trend for East Japan Railway 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.

* Premium members only.

East Japan Railway Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

7.75

6.27

2.21

East Japan Railway Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.84	1.77	4.81	6.47	5.90

Competitive Comparison

For the Railroads subindustry, East Japan Railway 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.

East Japan Railway Co Interest Coverage Distribution

For the Transportation industry and Industrials sector, East Japan Railway Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where East Japan Railway Co's Interest Coverage falls into.

East Japan Railway 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.

East Japan Railway Co'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, East Japan Railway Co's Interest Expense was $-477 Mil. Its Operating Income was $1,052 Mil. And its Long-Term Debt & Capital Lease Obligation was $30,635 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	1052.113	/	-476.971
	=	2.21

East Japan Railway Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, East Japan Railway Co's Interest Expense was $-126 Mil. Its Operating Income was $741 Mil. And its Long-Term Debt & Capital Lease Obligation was $29,570 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	741.158	/	-125.655
	=	5.90

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

East Japan Railway Co (OTCPK:EJPRY) 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 .

East Japan Railway Co Interest Coverage Related Terms

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East Japan Railway Co (East Japan Railway Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » East Japan Railway Co (OTCPK:EJPRY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

9020:Japan EJR0:Germany EJR:Germany EJR:Germany

Address

2-2, Yoyogi 2-chome, Shibuya-ku, Tokyo, JPN, 151-8578

Website

http://www.jreast.co.jp

East Japan Railway Company, or JR East, is the largest railway operator in Japan. It was originally established when the government-owned nationwide railway operator underwent a six-way territorial split in 1987, though it wasn't fully privatized until 2002. It runs both long distance bullet trains, known as Shinkansen, and shorter municipal train routes around and from Tokyo. Its 7,400 kilometers of rail track covers half of Japan's population and a third of the country's land area. Two thirds of revenue is from transportation, with most of the rest from retail operations and real estate investments.