Takara Holdings (TSE:2531) Interest Coverage : 45.83 (As of Dec. 2023)

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What is Takara Holdings 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. Takara Holdings's Operating Income for the three months ended in Dec. 2023 was 円5,316 Mil. Takara Holdings's Interest Expense for the three months ended in Dec. 2023 was 円-116 Mil. Takara Holdings's interest coverage for the quarter that ended in Dec. 2023 was 45.83. 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. Takara Holdings Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:2531' s Interest Coverage Range Over the Past 10 Years
Min: 20.45 Med: 33.74 Max: 131.38
Current: 53.57

TSE:2531's Interest Coverage is ranked better than
73.91% of 161 companies
in the Beverages - Alcoholic industry
Industry Median: 8.88 vs TSE:2531: 53.57

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

Takara Holdings Interest Coverage Historical Data

The historical data trend for Takara Holdings'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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Takara Holdings Interest Coverage Chart

Takara Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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46.01

39.30

62.78

131.38

117.11

Takara Holdings 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															177.57	34.37	78.04	57.66	45.83

Competitive Comparison of Takara Holdings's Interest Coverage

For the Beverages - Brewers subindustry, Takara Holdings'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.

Takara Holdings's Interest Coverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Takara Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Takara Holdings's Interest Coverage falls into.

Takara Holdings 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.

Takara Holdings'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, Takara Holdings's Interest Expense was 円-324 Mil. Its Operating Income was 円37,945 Mil. And its Long-Term Debt & Capital Lease Obligation was 円39,638 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	37945	/	-324
	=	117.11

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

Here, for the three months ended in Dec. 2023, Takara Holdings's Interest Expense was 円-116 Mil. Its Operating Income was 円5,316 Mil. And its Long-Term Debt & Capital Lease Obligation was 円25,456 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	5316	/	-116
	=	45.83

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

Takara Holdings (TSE:2531) 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 .

Takara Holdings Interest Coverage Related Terms

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

Takara Holdings (TSE:2531) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Takara Holdings Inc (TSE:2531) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TAX:Germany

Address

20 Naginataboko-cho, Shijo-dori Karasuma Higashi-iru, Shimogyo-ku, Kyoto, JPN, 600-8688

Website

http://www.takara.co.jp

Takara Holdings Inc operates three businesses: Alcoholic Beverages and Seasonings, Biomedical, and Health Foods. Roughly 80% of the company's sales come from Japan. The Alcoholic Beverages and Seasonings business, which manufactures shochu, sake, light-alcohol refreshers, seasonings, and raw alcohol, generates the vast majority of the company's revenue. Most remaining revenue comes from the biomedical business, which primarily manufactures and sells reagents and other instruments for biomedical researchers but also provides contract research services and develops health food ingredients. Takara's foods business develops and sells health food products that are largely based on seaweed, algae, and herbs.

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