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Takasago Thermal Engineering Co (TSE:1969) Interest Coverage : 63.14 (As of Mar. 2024)


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What is Takasago Thermal Engineering 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. Takasago Thermal Engineering Co's Operating Income for the three months ended in Mar. 2024 was 円5,683 Mil. Takasago Thermal Engineering Co's Interest Expense for the three months ended in Mar. 2024 was 円-90 Mil. Takasago Thermal Engineering Co's interest coverage for the quarter that ended in Mar. 2024 was 63.14. The higher the ratio, the stronger the company's financial strength is.

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

TSE:1969' s Interest Coverage Range Over the Past 10 Years
Min: 45.57   Med: 96.5   Max: 238.21
Current: 90.75


TSE:1969's Interest Coverage is ranked better than
85.07% of 1266 companies
in the Construction industry
Industry Median: 7.06 vs TSE:1969: 90.75

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


Takasago Thermal Engineering Co Interest Coverage Historical Data

The historical data trend for Takasago Thermal Engineering 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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Takasago Thermal Engineering Co Interest Coverage Chart

Takasago Thermal Engineering Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 65.11 45.57 60.71 55.14 84.01

Takasago Thermal Engineering Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 84.02 35.18 85.30 163.57 63.14

Competitive Comparison of Takasago Thermal Engineering Co's Interest Coverage

For the Building Products & Equipment subindustry, Takasago Thermal Engineering 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.


Takasago Thermal Engineering Co's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Takasago Thermal Engineering Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Takasago Thermal Engineering Co's Interest Coverage falls into.



Takasago Thermal Engineering 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.

Takasago Thermal Engineering Co's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, Takasago Thermal Engineering Co's Interest Expense was 円-288 Mil. Its Operating Income was 円24,196 Mil. And its Long-Term Debt & Capital Lease Obligation was 円20,000 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2024 )/Interest Expense (A: Mar. 2024 )
=-1*24196/-288
=84.01

Takasago Thermal Engineering Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Takasago Thermal Engineering Co's Interest Expense was 円-90 Mil. Its Operating Income was 円5,683 Mil. And its Long-Term Debt & Capital Lease Obligation was 円20,000 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*5683/-90
=63.14

* 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.


Takasago Thermal Engineering Co  (TSE:1969) 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 .


Takasago Thermal Engineering Co Interest Coverage Related Terms

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Takasago Thermal Engineering Co (TSE:1969) Business Description

Traded in Other Exchanges
N/A
Address
6-27-30, Shinjuku, Shinjuku-ku, Tokyo, JPN, 160-0022
Takasago Thermal Engineering is a Japan-based company that designs, constructs, manufactures, and installs heating, ventilation, and air conditioning, or HVAC, systems, clean room and related systems, plumbing and sanitation systems, cogeneration systems, electrical systems, instrumentation systems, equipment diagnosis/failure diagnosis systems, dehumidifying/drying systems, vacuum conveying systems for waste, discharged-heat recovery systems, heating/cooling systems, refrigerating/freezing systems, other types of environmental control systems and thermal engineering systems, and so on. In addition, the company is engaged in coordinating construction work, security, and cleaning, with further focuses on energy supply, power generation, and water treatment.

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