Mitsui Fudosan Co (TSE:8801) Interest Coverage : 3.25 (As of Dec. 2023)

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What is Mitsui Fudosan 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 Operating Income by its Interest Expense. Mitsui Fudosan Co's Operating Income for the three months ended in Dec. 2023 was 円65,559 Mil. Mitsui Fudosan Co's Interest Expense for the three months ended in Dec. 2023 was 円-20,146 Mil. Mitsui Fudosan Co's interest coverage for the quarter that ended in Dec. 2023 was 3.25. 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. Mitsui Fudosan Co Ltd interest coverage is 4.58, which is low.

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

TSE:8801' s Interest Coverage Range Over the Past 10 Years
Min: 4.58 Med: 7.86 Max: 9.58
Current: 4.58

TSE:8801's Interest Coverage is ranked better than
52.92% of 1351 companies
in the Real Estate industry
Industry Median: 3.98 vs TSE:8801: 4.58

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

Mitsui Fudosan Co Interest Coverage Historical Data

The historical data trend for Mitsui Fudosan 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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Mitsui Fudosan Co Interest Coverage Chart

Mitsui Fudosan Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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9.27

9.55

7.34

7.75

5.51

Mitsui Fudosan 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															5.33	4.95	4.89	5.39	3.25

Competitive Comparison of Mitsui Fudosan Co's Interest Coverage

For the Real Estate - Diversified subindustry, Mitsui Fudosan 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.

Mitsui Fudosan Co's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Mitsui Fudosan Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Mitsui Fudosan Co's Interest Coverage falls into.

Mitsui Fudosan 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.

Mitsui Fudosan 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, Mitsui Fudosan Co's Interest Expense was 円-55,457 Mil. Its Operating Income was 円305,405 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,245,613 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	305405	/	-55457
	=	5.51

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

Here, for the three months ended in Dec. 2023, Mitsui Fudosan Co's Interest Expense was 円-20,146 Mil. Its Operating Income was 円65,559 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,634,665 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	65559	/	-20146
	=	3.25

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

Mitsui Fudosan Co (TSE:8801) 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 .

Mitsui Fudosan Co Interest Coverage Related Terms

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

Mitsui Fudosan Co (TSE:8801) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Mitsui Fudosan Co Ltd (TSE:8801) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MTSFY:USA MTSFF:USA MFU:Germany

Address

1-1, Nihonbashi-Muromachi 2-chome, Chuo-ku, Tokyo, JPN, 103-0022

Website

http://www.mitsuifudosan.co.jp

Mitsui Fudosan is one of the three big Japanese real estate companies, together with Mitsubishi Estate and Sumitomo Realty. Although its traditional office district is Nihonbashi, it has developed large office projects across Tokyo, as well as London and New York City. Mitsui Fudosan derives a higher portion of its revenue and profits from retail leasing than Mitsubishi Estate and Sumitomo Realty with an extensive portfolio of urban retail buildings, shopping malls, and outlet parks. It is in the process of expanding the latter two formats across Asia. Like Sumitomo Realty, it is active in condo development and residential real estate brokerage, and its Mitsui Home unit is a second-tier builder of detached houses.

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