Nippon Building Fund (TSE:8951) Interest Coverage : 17.16 (As of Dec. 2023)

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What is Nippon Building Fund 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. Nippon Building Fund's Operating Income for the six months ended in Dec. 2023 was 円20,769 Mil. Nippon Building Fund's Interest Expense for the six months ended in Dec. 2023 was 円-1,210 Mil. Nippon Building Fund's interest coverage for the quarter that ended in Dec. 2023 was 17.16. The higher the ratio, the stronger the company's financial strength is.

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

TSE:8951' s Interest Coverage Range Over the Past 10 Years
Min: 5 Med: 11.25 Max: 19.22
Current: 16.83

TSE:8951's Interest Coverage is ranked better than
83.43% of 676 companies
in the REITs industry
Industry Median: 2.985 vs TSE:8951: 16.83

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

Nippon Building Fund Interest Coverage Historical Data

The historical data trend for Nippon Building Fund'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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Nippon Building Fund Interest Coverage Chart

Nippon Building Fund Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

12.59

14.92

17.60

19.22

16.83

Nippon Building Fund Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															17.77	21.20	17.23	16.50	17.16

Competitive Comparison of Nippon Building Fund's Interest Coverage

For the REIT - Office subindustry, Nippon Building Fund'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.

Nippon Building Fund's Interest Coverage Distribution in the REITs Industry

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

* The bar in red indicates where Nippon Building Fund's Interest Coverage falls into.

Nippon Building Fund 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.

Nippon Building Fund's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Nippon Building Fund's Interest Expense was 円-2,461 Mil. Its Operating Income was 円41,414 Mil. And its Long-Term Debt & Capital Lease Obligation was 円536,500 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	41414	/	-2461
	=	16.83

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

Here, for the six months ended in Dec. 2023, Nippon Building Fund's Interest Expense was 円-1,210 Mil. Its Operating Income was 円20,769 Mil. And its Long-Term Debt & Capital Lease Obligation was 円536,500 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	20769	/	-1210
	=	17.16

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

Nippon Building Fund (TSE:8951) 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 .

Nippon Building Fund Interest Coverage Related Terms

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

Nippon Building Fund (TSE:8951) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Nippon Building Fund Inc (TSE:8951) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

38th Floor, GranTokyo North Tower, 9-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo, JPN, 100-6738

Website

http://www.nbf-m.com

Nippon Building Fund Inc is a Japanese real estate investment trust engaged in the acquisition, ownership, and leasing of properties in the Greater Tokyo area. The company's real estate portfolio is primarily comprised of large corporate office buildings. The majority of these are located in the five wards of Tokyo's central business district. Office space located throughout the rest of Tokyo also makes up a substantial percentage of Nippon Building Fund's assets. The company derives the majority of its income in the form of rental revenue from tenants. Nippon Building Fund's largest customers are firms from the service, electrical equipment, and information and communications industries in terms of square footage used.

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