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Hitachi Construction Machinery Co (TSE:6305) Interest Coverage : 0 (At Loss) (As of Mar. 2024)


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What is Hitachi Construction Machinery 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. Hitachi Construction Machinery Co's Operating Income for the three months ended in Mar. 2024 was 円40,969 Mil. Hitachi Construction Machinery Co's Interest Expense for the three months ended in Mar. 2024 was 円1,125 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Hitachi Construction Machinery Co's Interest Coverage or its related term are showing as below:

TSE:6305' s Interest Coverage Range Over the Past 10 Years
Min: 2.58   Med: 6.73   Max: 16.64
Current: 7.3


TSE:6305's Interest Coverage is ranked worse than
57.23% of 159 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.94 vs TSE:6305: 7.30

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


Hitachi Construction Machinery Co Interest Coverage Historical Data

The historical data trend for Hitachi Construction Machinery 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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Hitachi Construction Machinery Co Interest Coverage Chart

Hitachi Construction Machinery 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 6.44 3.65 16.64 6.63 9.45

Hitachi Construction Machinery 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 9.79 10.32 8.67 2.67 -

Competitive Comparison of Hitachi Construction Machinery Co's Interest Coverage

For the Farm & Heavy Construction Machinery subindustry, Hitachi Construction Machinery 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.


Hitachi Construction Machinery Co's Interest Coverage Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Hitachi Construction Machinery Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hitachi Construction Machinery Co's Interest Coverage falls into.



Hitachi Construction Machinery 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.

Hitachi Construction Machinery 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, Hitachi Construction Machinery Co's Interest Expense was 円-17,213 Mil. Its Operating Income was 円162,690 Mil. And its Long-Term Debt & Capital Lease Obligation was 円241,811 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2024 )/Interest Expense (A: Mar. 2024 )
=-1*162690/-17213
=9.45

Hitachi Construction Machinery Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Hitachi Construction Machinery Co's Interest Expense was 円1,125 Mil. Its Operating Income was 円40,969 Mil. And its Long-Term Debt & Capital Lease Obligation was 円241,811 Mil.

* 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.


Hitachi Construction Machinery Co  (TSE:6305) 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 .


Hitachi Construction Machinery Co Interest Coverage Related Terms

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Hitachi Construction Machinery Co (TSE:6305) Business Description

Traded in Other Exchanges
Address
16-1, Higashiueno 2-chome, Taito-ku, Tokyo, JPN, 110-0015
Hitachi Construction Machinery, or HCM, manufactures and sells construction and mining machinery, and provides related services such as parts supply, rentals, and others. HCM was established in 1970 as a subsidiary of Hitachi, but its origins date back to 1949 when it introduced Japan's first mechanical excavator. The company's main products include hydraulic excavators for mining/construction, rigid dump trucks, and wheel loaders. As of August 2022, Hitachi is no longer the parent company of HCM, after selling 26% of its stake to HCJI Holdings, a joint venture between Itochu and Japan Industrial Partners. Currently, Hitachi has a 25.4% stake in Hitachi Construction Machinery as an equity-method affiliate. HCM is based in Tokyo, Japan.

Hitachi Construction Machinery Co (TSE:6305) Headlines

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