Mitsubishi Kakoki Kaisha (TSE:6331) Interest Coverage : 161.14 (As of Dec. 2023)

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What is Mitsubishi Kakoki Kaisha 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. Mitsubishi Kakoki Kaisha's Operating Income for the three months ended in Dec. 2023 was 円1,128 Mil. Mitsubishi Kakoki Kaisha's Interest Expense for the three months ended in Dec. 2023 was 円-7 Mil. Mitsubishi Kakoki Kaisha's interest coverage for the quarter that ended in Dec. 2023 was 161.14. 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. Mitsubishi Kakoki Kaisha Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:6331' s Interest Coverage Range Over the Past 10 Years
Min: 24.4 Med: 58.15 Max: 147.3
Current: 147.3

TSE:6331's Interest Coverage is ranked better than
84.48% of 2294 companies
in the Industrial Products industry
Industry Median: 13.71 vs TSE:6331: 147.30

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

Mitsubishi Kakoki Kaisha Interest Coverage Historical Data

The historical data trend for Mitsubishi Kakoki Kaisha'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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Mitsubishi Kakoki Kaisha Interest Coverage Chart

Mitsubishi Kakoki Kaisha Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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55.75

74.38

89.71

84.27

147.30

Mitsubishi Kakoki Kaisha 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															60.57	48.00	230.13	161.14	139.25

Competitive Comparison of Mitsubishi Kakoki Kaisha's Interest Coverage

For the Pollution & Treatment Controls subindustry, Mitsubishi Kakoki Kaisha'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.

Mitsubishi Kakoki Kaisha's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Mitsubishi Kakoki Kaisha's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Mitsubishi Kakoki Kaisha's Interest Coverage falls into.

Mitsubishi Kakoki Kaisha 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.

Mitsubishi Kakoki Kaisha'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, Mitsubishi Kakoki Kaisha's Interest Expense was 円-30 Mil. Its Operating Income was 円4,419 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,300 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	4419	/	-30
	=	147.30

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

Here, for the three months ended in Dec. 2023, Mitsubishi Kakoki Kaisha's Interest Expense was 円-7 Mil. Its Operating Income was 円1,128 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,300 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1128	/	-7
	=	161.14

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

Mitsubishi Kakoki Kaisha (TSE:6331) 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 .

Mitsubishi Kakoki Kaisha Interest Coverage Related Terms

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

Mitsubishi Kakoki Kaisha (TSE:6331) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Mitsubishi Kakoki Kaisha Ltd (TSE:6331) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

893:Germany

Address

2-1 Ohkawa-cho, Kawasaki-ku, Kawasaki, Kanagawa, JPN, 210-8560

Website

http://www.kakoki.co.jp

Mitsubishi Kakoki Kaisha Ltd is a manufacturer of chemical plant equipment. The reportable segments of the company are the Engineering business and the Machinery business. The Engineering business includes city gas and petroleum-related plants, a variety of chemical engineering plants, hydrogen generation plants, sewage treatment equipment, diverse water treatment equipment and related products. The Machinery business includes oil purifiers, a variety of separation and filtration machinery, seawater screening facility mixers and related products. It serves the diversified industries in the fields of energy, chemicals, foodstuffs, pharmaceuticals, air purification, and water and waste treatment. The company has an operational presence across Europe, Mainland China, Taiwan and Thailand.

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