GSI Co (SSE:5579) Interest Coverage : 508.99 (As of Dec. 2023)

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What is GSI 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. GSI Co's Operating Income for the three months ended in Dec. 2023 was 円151 Mil. GSI Co's Interest Expense for the three months ended in Dec. 2023 was 円-0 Mil. GSI Co's interest coverage for the quarter that ended in Dec. 2023 was 508.99. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. GSI Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

SSE:5579' s Interest Coverage Range Over the Past 10 Years
Min: 283.07 Med: 328.87 Max: 374.67
Current: 370.95

SSE:5579's Interest Coverage is ranked better than
78.13% of 1614 companies
in the Software industry
Industry Median: 29.37 vs SSE:5579: 370.95

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

GSI Co Interest Coverage Historical Data

The historical data trend for GSI 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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GSI Co Interest Coverage Chart

GSI Co Annual Data

Trend

Mar22

Mar23

Interest Coverage

283.07

374.67

GSI Co Quarterly Data
	Mar22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	N/A	N/A	292.29	312.45	508.99

Competitive Comparison of GSI Co's Interest Coverage

For the Information Technology Services subindustry, GSI 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.

GSI Co's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, GSI Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where GSI Co's Interest Coverage falls into.

GSI 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.

GSI 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, GSI Co's Interest Expense was 円-1 Mil. Its Operating Income was 円431 Mil. And its Long-Term Debt & Capital Lease Obligation was 円145 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	430.875	/	-1.15
	=	374.67

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

Here, for the three months ended in Dec. 2023, GSI Co's Interest Expense was 円-0 Mil. Its Operating Income was 円151 Mil. And its Long-Term Debt & Capital Lease Obligation was 円166 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	150.66	/	-0.296
	=	508.99

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

GSI Co (SSE:5579) 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 .

GSI Co Interest Coverage Related Terms

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

GSI Co (SSE:5579) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » GSI Co Ltd (SSE:5579) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Kita 7-jo Nishi 1-1-2, SE Sapporo Building 13th Floor, Kita-ku, Sapporo, JPN, 060-0807

Website

https://www.glue-si.com

GSI Co Ltd is engaged in providing IT solution services that satisfy its customers. It is a system development business that specializes in providing system development to companies that are struggling with a lack of IT service development capabilities to utilize corporate digital technology.

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