Leo Palace21 (TSE:8848) Interest Coverage : 4.92 (As of Dec. 2023)

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What is Leo Palace21 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. Leo Palace21's Operating Income for the three months ended in Dec. 2023 was 円5,181 Mil. Leo Palace21's Interest Expense for the three months ended in Dec. 2023 was 円-1,052 Mil. Leo Palace21'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.

The historical rank and industry rank for Leo Palace21's Interest Coverage or its related term are showing as below:

TSE:8848' s Interest Coverage Range Over the Past 10 Years
Min: 0.4 Med: 11.41 Max: 31.2
Current: 4.42

TSE:8848's Interest Coverage is ranked better than
52.76% of 1342 companies
in the Real Estate industry
Industry Median: 3.955 vs TSE:8848: 4.42

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

Leo Palace21 Interest Coverage Historical Data

The historical data trend for Leo Palace21'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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Leo Palace21 Interest Coverage Chart

Leo Palace21 Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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9.89

0.40

2.26

Leo Palace21 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															3.51	-	6.95	6.53	4.92

Competitive Comparison of Leo Palace21's Interest Coverage

For the Real Estate Services subindustry, Leo Palace21'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.

Leo Palace21's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Leo Palace21's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Leo Palace21's Interest Coverage falls into.

Leo Palace21 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.

Leo Palace21'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, Leo Palace21's Interest Expense was 円-4,370 Mil. Its Operating Income was 円9,883 Mil. And its Long-Term Debt & Capital Lease Obligation was 円30,634 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	9883	/	-4370
	=	2.26

Leo Palace21's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Leo Palace21's Interest Expense was 円-1,052 Mil. Its Operating Income was 円5,181 Mil. And its Long-Term Debt & Capital Lease Obligation was 円29,915 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	5181	/	-1052
	=	4.92

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

Leo Palace21 (TSE:8848) 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 .

Leo Palace21 Interest Coverage Related Terms

Thank you for viewing the detailed overview of Leo Palace21's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Leo Palace21 (TSE:8848) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Leo Palace21 Corp (TSE:8848) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MQI:Germany

Address

2-54-11 Honcho, Nakano-ku, Tokyo, JPN, 164-8622

Website

http://www.leopalace21.co.jp

Leo Palace21 Corp has two core businesses: Construction, which builds apartment buildings, and Leasing, which rents and manages units in the apartments that the company builds. Upon completion, Leo Palace21 typically sells buildings to investors and then pays them a fixed rental amount for all the units in the building, whether occupied or not. LeoPalace21 then rents, manages, and maintains the units and keeps all rent from tenants as its own revenue. The company also has an Elderly Care business, which runs nursing facilities, and a Hotel & Resort business. The vast majority of LeoPalace21's revenue comes from the Leasing segment, and more than 90% of the company's revenue is generated in Japan.

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