Horiba (TSE:6856) Interest Coverage : 96.39 (As of Dec. 2023)

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What is Horiba 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. Horiba's Operating Income for the three months ended in Dec. 2023 was 円18,797 Mil. Horiba's Interest Expense for the three months ended in Dec. 2023 was 円-195 Mil. Horiba's interest coverage for the quarter that ended in Dec. 2023 was 96.39. 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. Horiba Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:6856' s Interest Coverage Range Over the Past 10 Years
Min: 24.68 Med: 52.19 Max: 69.78
Current: 65.51

TSE:6856's Interest Coverage is ranked better than
77.42% of 1590 companies
in the Hardware industry
Industry Median: 12.55 vs TSE:6856: 65.51

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

Horiba Interest Coverage Historical Data

The historical data trend for Horiba'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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Horiba Interest Coverage Chart

Horiba Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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42.17

42.26

62.11

69.78

65.51

Horiba 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															86.36	46.66	68.41	54.67	96.39

Competitive Comparison of Horiba's Interest Coverage

For the Scientific & Technical Instruments subindustry, Horiba'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.

Horiba's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Horiba's Interest Coverage distribution charts can be found below:

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

Horiba 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.

Horiba'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, Horiba's Interest Expense was 円-722 Mil. Its Operating Income was 円47,297 Mil. And its Long-Term Debt & Capital Lease Obligation was 円54,699 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	47297	/	-722
	=	65.51

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

Here, for the three months ended in Dec. 2023, Horiba's Interest Expense was 円-195 Mil. Its Operating Income was 円18,797 Mil. And its Long-Term Debt & Capital Lease Obligation was 円54,699 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	18797	/	-195
	=	96.39

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

Horiba (TSE:6856) 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 .

Horiba Interest Coverage Related Terms

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

Horiba (TSE:6856) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Horiba Ltd (TSE:6856) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HRIBF:USA 01H:Germany

Address

2, Miyanohigashi-cho, Kisshoin, Minami-ku, Kyoto, JPN, 601-8510

Website

http://www.horiba.co.jp

Horiba Ltd provides analytical and measurement equipment. The automotive test systems segment contributes the largest percentage of revenue and supplies engine, driveline, brake, wind tunnel balance, and emissions test systems. The scientific segment sells instruments like pH meters, X-ray microscopes, and spectrometers. The semiconductor segment supplies mass flow controllers that are used in the semiconductor manufacturing process. The medical-diagnostic segment sells blood testing instruments and reagents for the in vitro diagnostics market. The process and environmental segment provides solutions associated with environmental regulations, such as air-pollution and water-quality analyzers. Horiba generates the largest proportion of its sales in Japan.

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