Capcom Co (TSE:9697) Interest Coverage : 924.60 (As of Dec. 2023)

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Capcom Co Interest Coverage Definition

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. Capcom Co's Operating Income for the three months ended in Dec. 2023 was 円13,869 Mil. Capcom Co's Interest Expense for the three months ended in Dec. 2023 was 円-15 Mil. Capcom Co's interest coverage for the quarter that ended in Dec. 2023 was 924.60. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Capcom Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:9697' s Interest Coverage Range Over the Past 10 Years
Min: 96.82 Med: 191.25 Max: 1154.84
Current: 1123.9

TSE:9697's Interest Coverage is ranked better than
80.25% of 314 companies
in the Interactive Media industry
Industry Median: 35.915 vs TSE:9697: 1123.90

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

Capcom Co Interest Coverage Historical Data

Capcom Co Interest Coverage Chart

The historical data trend for Capcom 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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Capcom Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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226.80

308.49

480.50

875.69

1,154.84

Capcom 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															1,143.60	1,248.64	1,603.13	699.21	924.60

Competitive Comparison

For the Electronic Gaming & Multimedia subindustry, Capcom 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.

Capcom Co Interest Coverage Distribution

For the Interactive Media industry and Communication Services sector, Capcom Co's Interest Coverage distribution charts can be found below:

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

Capcom 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.

Capcom 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, Capcom Co's Interest Expense was 円-44 Mil. Its Operating Income was 円50,813 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,618 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	50813	/	-44
	=	1,154.84

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

Here, for the three months ended in Dec. 2023, Capcom Co's Interest Expense was 円-15 Mil. Its Operating Income was 円13,869 Mil. And its Long-Term Debt & Capital Lease Obligation was 円312 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	13869	/	-15
	=	924.60

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

Capcom Co (TSE:9697) 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 .

Capcom Co Interest Coverage Related Terms

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

Capcom Co (TSE:9697) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Capcom Co Ltd (TSE:9697) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CCOEY:USA CCOEF:USA CPK:Germany CPK:Germany

Address

3-1-3 Uchihirano-machi, Chuo-ku, Osaka-shi, Osaka, JPN, 540-0037

Website

http://www.capcom.co.jp

Capcom Co Ltd is a Japanese company that produces and sells videogame software, online games, mobile games, and operates amusement facilities. The company has operations in Japan, North America, Europe, Asia, and emerging markets. The majority of its revenue is split fairly evenly between Japan, Asia, North America, and Europe. Capcom's segments include Digital Contents, which sells mobile and PC games; Arcade Operations, which operates Plaza Capcom amusement facilities; Amusement Equipment, which sells frames and LCD devices for gaming machines and software; and Other Businesses. The company derives the vast majority of its revenue from its Digital Contents segment. Some of the firm's notable games include Resident Evil, Street Fighter, Monster Hunter, and Mega Man.

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