Hisamitsu Pharmaceutical Co (TSE:4530) Interest Coverage : 774.80 (As of Nov. 2023)

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What is Hisamitsu Pharmaceutical 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. Hisamitsu Pharmaceutical Co's Operating Income for the three months ended in Nov. 2023 was 円3,874 Mil. Hisamitsu Pharmaceutical Co's Interest Expense for the three months ended in Nov. 2023 was 円-5 Mil. Hisamitsu Pharmaceutical Co's interest coverage for the quarter that ended in Nov. 2023 was 774.80. 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. Hisamitsu Pharmaceutical Co Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:4530' s Interest Coverage Range Over the Past 10 Years
Min: 466.85 Med: 807.62 Max: 1196.21
Current: 731.5

TSE:4530's Interest Coverage is ranked better than
91.22% of 683 companies
in the Drug Manufacturers industry
Industry Median: 12.1 vs TSE:4530: 731.50

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

Hisamitsu Pharmaceutical Co Interest Coverage Historical Data

The historical data trend for Hisamitsu Pharmaceutical 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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Hisamitsu Pharmaceutical Co Interest Coverage Chart

Hisamitsu Pharmaceutical Co Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Interest Coverage

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1,196.21

1,067.20

466.85

773.33

731.50

Hisamitsu Pharmaceutical Co Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Interest Coverage	Get a 7-Day Free Trial															1,031.00	N/A	576.29	774.80	149.50

Competitive Comparison of Hisamitsu Pharmaceutical Co's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Hisamitsu Pharmaceutical 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.

Hisamitsu Pharmaceutical Co's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Hisamitsu Pharmaceutical Co's Interest Coverage distribution charts can be found below:

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

Hisamitsu Pharmaceutical 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.

Hisamitsu Pharmaceutical Co's Interest Coverage for the fiscal year that ended in Feb. 2024 is calculated as

Here, for the fiscal year that ended in Feb. 2024, Hisamitsu Pharmaceutical Co's Interest Expense was 円-18 Mil. Its Operating Income was 円13,167 Mil. And its Long-Term Debt & Capital Lease Obligation was 円679 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Feb. 2024 )	/	Interest Expense (A: Feb. 2024 )
	=	-1	*	13167	/	-18
	=	731.50

Hisamitsu Pharmaceutical Co's Interest Coverage for the quarter that ended in Nov. 2023 is calculated as

Here, for the three months ended in Nov. 2023, Hisamitsu Pharmaceutical Co's Interest Expense was 円-5 Mil. Its Operating Income was 円3,874 Mil. And its Long-Term Debt & Capital Lease Obligation was 円95 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Nov. 2023 )	/	Interest Expense (Q: Nov. 2023 )
	=	-1	*	3874	/	-5
	=	774.80

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

Hisamitsu Pharmaceutical Co (TSE:4530) 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 .

Hisamitsu Pharmaceutical Co Interest Coverage Related Terms

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

Hisamitsu Pharmaceutical Co (TSE:4530) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Hisamitsu Pharmaceutical Co Inc (TSE:4530) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HPX:Germany

Address

408 Tashiro Daikan-machi, Tosu, Saga, JPN, 841-0017

Website

http://www.hisamitsu.co.jp

Hisamitsu Pharmaceutical Co Inc is a major pharmaceutical products manufacturer in Japan. The company collaborates with its subsidiaries and associates in operating its business across two segments, The Medical and Related Product segment and the Others segment. The Medical segment represents the company's foremost revenue generating operations. It markets drugs under the Salanpas, Salonsip, Lifecella, Mohrus and Keplat brands, which mainly serve topical medication needs with pain relief creams, gels, sprays, lotions and ointments. The Others segment refers to its miscellaneous businesses such as cable television broadcasting, internet connection, packing materials and insurance. Apart from its primary market in Japan, Hisamitsu has a reach across other regions like North America.

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