Nipro (TSE:8086) Interest Coverage : 4.92 (As of Dec. 2023)

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What is Nipro 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. Nipro's Operating Income for the three months ended in Dec. 2023 was 円8,874 Mil. Nipro's Interest Expense for the three months ended in Dec. 2023 was 円-1,803 Mil. Nipro's interest coverage for the quarter that ended in Dec. 2023 was 4.92. 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. Nipro Corp interest coverage is 3.42, which is low.

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

TSE:8086' s Interest Coverage Range Over the Past 10 Years
Min: 3.42 Med: 6.34 Max: 7.65
Current: 3.42

TSE:8086's Interest Coverage is ranked worse than
84.83% of 422 companies
in the Medical Devices & Instruments industry
Industry Median: 18.015 vs TSE:8086: 3.42

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

Nipro Interest Coverage Historical Data

The historical data trend for Nipro'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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Nipro Interest Coverage Chart

Nipro Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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7.65

6.90

5.78

3.94

3.42

Nipro 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															3.40	5.34	4.18	4.92	-

Competitive Comparison of Nipro's Interest Coverage

For the Medical Instruments & Supplies subindustry, Nipro'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.

Nipro's Interest Coverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Nipro's Interest Coverage distribution charts can be found below:

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

Nipro 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.

Nipro'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, Nipro's Interest Expense was 円-6,527 Mil. Its Operating Income was 円22,335 Mil. And its Long-Term Debt & Capital Lease Obligation was 円440,281 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	22335	/	-6527
	=	3.42

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

Here, for the three months ended in Dec. 2023, Nipro's Interest Expense was 円-1,803 Mil. Its Operating Income was 円8,874 Mil. And its Long-Term Debt & Capital Lease Obligation was 円438,489 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	8874	/	-1803
	=	4.92

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

Nipro (TSE:8086) 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 .

Nipro Interest Coverage Related Terms

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

Nipro (TSE:8086) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Nipro Corp (TSE:8086) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

5FA:Germany

Address

3-9-3 Honjo-Nishi Kita-ku, Osaka, JPN, 531-8510

Website

http://www.nipro.co.jp

Nipro Corp develops medical devices, most of which are related to dialysis and artificial organs. The firm operates in four segments: medical, pharmaceutical, glass, and other. The medical segment contributes the majority of revenue. It sells products related to injections, infusions, artificial organs, and cell cultures, as well as medical equipment for renal treatment, diabetes, and generic drugs. Renal products contribute the largest proportion of sales within the medical segment. The pharmaceutical segment manufactures pharmaceuticals, including oral drugs and injectables, which are supplied to pharmaceutical companies in Japan. The glass business sells glass products used for medical applications, such as vials and syringes. Nipro generates the majority of its revenue in Japan.

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