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Japan Post Insurance Co (TSE:7181) Interest Coverage : 15.78 (As of Dec. 2023)


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What is Japan Post Insurance Co 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 EBIT by its Interest Expense. Japan Post Insurance Co's EBIT for the three months ended in Dec. 2023 was 円22,256 Mil. Japan Post Insurance Co's Interest Expense for the three months ended in Dec. 2023 was 円-1,410 Mil. Japan Post Insurance Co's interest coverage for the quarter that ended in Dec. 2023 was 15.78. The higher the ratio, the stronger the company's financial strength is.

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

TSE:7181' s Interest Coverage Range Over the Past 10 Years
Min: 19.42   Med: 94.78   Max: 161.34
Current: 19.42


TSE:7181's Interest Coverage is ranked better than
58.02% of 324 companies
in the Insurance industry
Industry Median: 13.355 vs TSE:7181: 19.42

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


Japan Post Insurance Co Interest Coverage Historical Data

The historical data trend for Japan Post Insurance 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.

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Japan Post Insurance Co Interest Coverage Chart

Japan Post Insurance Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 161.34 102.60 102.01 94.78 30.71

Japan Post Insurance 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 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.01 10.76 29.67 38.01 15.78

Competitive Comparison of Japan Post Insurance Co's Interest Coverage

For the Insurance - Life subindustry, Japan Post Insurance 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.


Japan Post Insurance Co's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Japan Post Insurance Co's Interest Coverage distribution charts can be found below:

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



Japan Post Insurance 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 EBIT is positive, then

Interest Coverage=-1* EBIT /Interest Expense

Else if Interest Expense is negative and EBIT 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.

Japan Post Insurance 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, Japan Post Insurance Co's Interest Expense was 円-4,639 Mil. Its EBIT was 円142,468 Mil. And its Long-Term Debt & Capital Lease Obligation was 円300,000 Mil.

Interest Coverage=-1* EBIT (A: Mar. 2023 )/Interest Expense (A: Mar. 2023 )
=-1*142468/-4639
=30.71

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

Here, for the three months ended in Dec. 2023, Japan Post Insurance Co's Interest Expense was 円-1,410 Mil. Its EBIT was 円22,256 Mil. And its Long-Term Debt & Capital Lease Obligation was 円400,000 Mil.

Interest Coverage=-1* EBIT (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*22256/-1410
=15.78

* 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.

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


Japan Post Insurance Co  (TSE:7181) 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 .


Japan Post Insurance Co Interest Coverage Related Terms

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


Japan Post Insurance Co (TSE:7181) Business Description

Traded in Other Exchanges
Address
3-2, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo, JPN, 100-8798
Japan Post Insurance Co Ltd is a life insurance company based in Japan. It is engaged in the life insurance business and postal life insurance management business. In addition, it provides agency or administration services for other insurance companies including foreign insurance companies and other financial services companies; loan guarantees and other businesses supplemental to previously mentioned businesses. The group has only one segment, namely, the Life Insurance Business in Japan.

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