Sumitomo Realty & Development Co (TSE:8830) Interest Coverage : 12.30 (As of Dec. 2023)

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What is Sumitomo Realty & Development 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. Sumitomo Realty & Development Co's Operating Income for the three months ended in Dec. 2023 was 円54,223 Mil. Sumitomo Realty & Development Co's Interest Expense for the three months ended in Dec. 2023 was 円-4,409 Mil. Sumitomo Realty & Development Co's interest coverage for the quarter that ended in Dec. 2023 was 12.30. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sumitomo Realty & Development Co's Interest Coverage or its related term are showing as below:

TSE:8830' s Interest Coverage Range Over the Past 10 Years
Min: 5.95 Med: 10.49 Max: 13.9
Current: 13.9

TSE:8830's Interest Coverage is ranked better than
71.93% of 1350 companies
in the Real Estate industry
Industry Median: 3.97 vs TSE:8830: 13.90

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

Sumitomo Realty & Development Co Interest Coverage Historical Data

The historical data trend for Sumitomo Realty & Development 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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Sumitomo Realty & Development Co Interest Coverage Chart

Sumitomo Realty & Development Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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10.87

12.21

11.97

12.97

13.73

Sumitomo Realty & Development Co 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															13.02	10.19	17.27	15.65	12.30

Competitive Comparison of Sumitomo Realty & Development Co's Interest Coverage

For the Real Estate Services subindustry, Sumitomo Realty & Development 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.

Sumitomo Realty & Development Co's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Sumitomo Realty & Development Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sumitomo Realty & Development Co's Interest Coverage falls into.

Sumitomo Realty & Development 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.

Sumitomo Realty & Development Co'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, Sumitomo Realty & Development Co's Interest Expense was 円-17,576 Mil. Its Operating Income was 円241,277 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,435,299 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	241277	/	-17576
	=	13.73

Sumitomo Realty & Development Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Sumitomo Realty & Development Co's Interest Expense was 円-4,409 Mil. Its Operating Income was 円54,223 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,338,641 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	54223	/	-4409
	=	12.30

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

Sumitomo Realty & Development Co (TSE:8830) 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 .

Sumitomo Realty & Development Co Interest Coverage Related Terms

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

Sumitomo Realty & Development Co (TSE:8830) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Sumitomo Realty & Development Co Ltd (TSE:8830) » Definitions » Interest Coverage

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SURDF:USA

Address

Shinjuku NS Building, 4-1, Nishi-Shinjuku 2-chome, Shinjuku-ku, Tokyo, JPN, 163-0820

Website

http://www.sumitomo-rd.co.jp

Sumitomo Realty & Development is one of the three big Japanese real estate companies. Unlike Mitsubishi Estate in Marunouchi or Mitsui Fudosan in Nihonbashi, it did not inherit a cluster of prime properties from its prewar predecessor, so Sumitomo Realty has built up a portfolio dispersed across central Tokyo (not just in the main business districts) by opportunistically redeveloping plots of land acquired piecemeal. After office leasing, condo development is a relatively important business for Sumitomo Realty, contributing close to one fourth of its operating profit. The firm is slightly smaller than Mitsubishi Estate and Mitsui Fudosan by assets and has more financial leverage than they do.

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