Japan Real Estate Investment (TSE:8952) Interest Coverage : 20.17 (As of Sep. 2023)

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What is Japan Real Estate Investment 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. Japan Real Estate Investment's Operating Income for the six months ended in Sep. 2023 was 円18,049 Mil. Japan Real Estate Investment's Interest Expense for the six months ended in Sep. 2023 was 円-895 Mil. Japan Real Estate Investment's interest coverage for the quarter that ended in Sep. 2023 was 20.17. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Japan Real Estate Investment's Interest Coverage or its related term are showing as below:

TSE:8952' s Interest Coverage Range Over the Past 10 Years
Min: 6.63 Med: 13.33 Max: 20.62
Current: 20.42

TSE:8952's Interest Coverage is ranked better than
84.08% of 672 companies
in the REITs industry
Industry Median: 2.98 vs TSE:8952: 20.42

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

Japan Real Estate Investment Interest Coverage Historical Data

The historical data trend for Japan Real Estate Investment'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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Japan Real Estate Investment Interest Coverage Chart

Japan Real Estate Investment Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

Get a 7-Day Free Trial

14.51

17.47

19.19

20.62

20.42

Japan Real Estate Investment Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial															20.67	19.66	21.62	20.70	20.17

Competitive Comparison of Japan Real Estate Investment's Interest Coverage

For the REIT - Office subindustry, Japan Real Estate Investment'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.

Japan Real Estate Investment's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Japan Real Estate Investment's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Japan Real Estate Investment's Interest Coverage falls into.

Japan Real Estate Investment 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.

Japan Real Estate Investment's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Japan Real Estate Investment's Interest Expense was 円-1,718 Mil. Its Operating Income was 円35,090 Mil. And its Long-Term Debt & Capital Lease Obligation was 円354,893 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	35089.815	/	-1718.237
	=	20.42

Japan Real Estate Investment's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Japan Real Estate Investment's Interest Expense was 円-895 Mil. Its Operating Income was 円18,049 Mil. And its Long-Term Debt & Capital Lease Obligation was 円354,893 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	18048.681	/	-895.001
	=	20.17

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

Japan Real Estate Investment (TSE:8952) 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 .

Japan Real Estate Investment Interest Coverage Related Terms

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

Japan Real Estate Investment (TSE:8952) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Japan Real Estate Investment Corp (TSE:8952) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

3-3-1 Marunouchi, Chiyoda-ku, Tokyo, JPN, 100-0005

Website

http://www.j-re.co.jp

Japan Real Estate Investment Corp, or J-REIT, is a Japanese real estate investment trust that invests in, owns, and leases office properties. The vast majority of the company's real estate portfolio is located within Tokyo's 23 wards and the Tokyo metropolitan area in terms of total value. Within this area, most of J-REIT's offices reside within the Tokyo central business district. The company derives nearly all of its income in the form of rental revenue from the leasing of its office properties. While J-REIT tenants hail from a diverse assortment of industries, firms from the service, information services, electric devices, and financial services industries are its largest customers in terms of total leased space.

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