SoftBank Group (SoftBank Group) Interest Coverage

: 1.24 (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. SoftBank Group's Operating Income for the three months ended in Dec. 2023 was $1,134 Mil. SoftBank Group's Interest Expense for the three months ended in Dec. 2023 was $-914 Mil. SoftBank Group's interest coverage for the quarter that ended in Dec. 2023 was 1.24. 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. SoftBank Group Corps earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

SFTBY' s Interest Coverage Range Over the Past 10 Years
Min: 0.94 Med: 2.09 Max: 5.55
Current: 0.94

SFTBY's Interest Coverage is ranked worse than
89.27% of 289 companies
in the Telecommunication Services industry
Industry Median: 4.53 vs SFTBY: 0.94

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

SoftBank Group Interest Coverage Historical Data

The historical data trend for SoftBank Group'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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SoftBank Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

5.55

2.02

1.96

1.87

1.14

SoftBank Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.60	-	1.32	1.25	1.24

Competitive Comparison

For the Telecom Services subindustry, SoftBank Group'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.

SoftBank Group Interest Coverage Distribution

For the Telecommunication Services industry and Communication Services sector, SoftBank Group's Interest Coverage distribution charts can be found below:

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

SoftBank Group 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.

SoftBank Group'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, SoftBank Group's Interest Expense was $-4,159 Mil. Its Operating Income was $4,734 Mil. And its Long-Term Debt & Capital Lease Obligation was $113,614 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	4733.605	/	-4158.941
	=	1.14

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

Here, for the three months ended in Dec. 2023, SoftBank Group's Interest Expense was $-914 Mil. Its Operating Income was $1,134 Mil. And its Long-Term Debt & Capital Lease Obligation was $99,393 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1134.486	/	-914.09
	=	1.24

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

SoftBank Group (OTCPK:SFTBY) 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 .

SoftBank Group Interest Coverage Related Terms

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

SoftBank Group (SoftBank Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » SoftBank Group Corp (OTCPK:SFTBY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SFTBF:USA SOFT:Mexico 9984:Japan SFT:Germany SFT:Austria

Address

1-9-1 Higashi-shimbashi, Minato-ku, Tokyo, JPN, 105-7303

Website

https://www.group.softbank

SoftBank is a Japan-based telecom and e-commerce conglomerate that has expanded mainly through acquisitions, and its key assets include a 40%-owned mobile and fixed broadband telecom operator business in Japan. It also owns 90% of semiconductor chip designer ARM Holdings following the 2023 IPO of this business, and has a vast portfolio of mainly internet- and e-commerce-focused early stage investments. It is also general partner of the $100 billion SoftBank Vision Fund 1 and sole investor in SoftBank Vision Fund 2, both of which primarily invest in pre-IPO internet companies.