SUMCO (TSE:3436) Interest Coverage

: 27.65 (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. SUMCO's Operating Income for the three months ended in Dec. 2023 was 円11,225 Mil. SUMCO's Interest Expense for the three months ended in Dec. 2023 was 円-406 Mil. SUMCO's interest coverage for the quarter that ended in Dec. 2023 was 27.65. The higher the ratio, the stronger the company's financial strength is.

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

TSE:3436' s Interest Coverage Range Over the Past 10 Years
Min: 5.06 Med: 43.39 Max: 134.42
Current: 64.16

TSE:3436's Interest Coverage is ranked better than
69.52% of 620 companies
in the Semiconductors industry
Industry Median: 19.975 vs TSE:3436: 64.16

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

SUMCO Interest Coverage Historical Data

The historical data trend for SUMCO'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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SUMCO Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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47.59

39.19

60.14

134.42

64.16

SUMCO 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															138.38	137.43	95.91	46.08	27.65

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, SUMCO'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.

SUMCO Interest Coverage Distribution

For the Semiconductors industry and Technology sector, SUMCO's Interest Coverage distribution charts can be found below:

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

SUMCO 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.

SUMCO's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, SUMCO's Interest Expense was 円-1,139 Mil. Its Operating Income was 円73,081 Mil. And its Long-Term Debt & Capital Lease Obligation was 円190,254 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	73081	/	-1139
	=	64.16

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

Here, for the three months ended in Dec. 2023, SUMCO's Interest Expense was 円-406 Mil. Its Operating Income was 円11,225 Mil. And its Long-Term Debt & Capital Lease Obligation was 円190,254 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	11225	/	-406
	=	27.65

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

SUMCO (TSE:3436) 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 .

SUMCO Interest Coverage Related Terms

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

SUMCO (TSE:3436) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » SUMCO Corp (TSE:3436) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SUOPY:USA SUMCF:USA S3X:Germany

Address

1-2-1 Shibaura, Seavans North, Minato-ku, Tokyo, JPN, 105-8634

Website

http://www.sumcosi.com

Founded in 1999 as a joint venture between Nippon Steel and two Mitsubishi entities, Sumco is the world's second-largest semiconductor-grade silicon wafer manufacturer, with 22% market share in 2022. Sumco is headquartered in Tokyo and operates seven production sites across Japan. It also maintains sales and support offices in Taiwan, the U.S., the U.K., Indonesia, and Singapore. Sumco sells to most semiconductor manufacturers like TSMC, Intel, Samsung and Micron. The firm employs over 9,000 people.

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