Stanley Electric Co (TSE:6923) Interest Coverage : 202.06 (As of Dec. 2023)

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What is Stanley Electric 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. Stanley Electric Co's Operating Income for the three months ended in Dec. 2023 was 円13,336 Mil. Stanley Electric Co's Interest Expense for the three months ended in Dec. 2023 was 円-66 Mil. Stanley Electric Co's interest coverage for the quarter that ended in Dec. 2023 was 202.06. 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. Stanley Electric Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:6923' s Interest Coverage Range Over the Past 10 Years
Min: 100.54 Med: 222.65 Max: 425.35
Current: 203.61

TSE:6923's Interest Coverage is ranked better than
92.55% of 1034 companies
in the Vehicles & Parts industry
Industry Median: 7.785 vs TSE:6923: 203.61

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

Stanley Electric Co Interest Coverage Historical Data

The historical data trend for Stanley Electric 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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Stanley Electric Co Interest Coverage Chart

Stanley Electric Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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100.54

370.13

308.26

192.97

203.61

Stanley Electric Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															445.11	135.74	216.94	202.06	240.60

Competitive Comparison of Stanley Electric Co's Interest Coverage

For the Auto Parts subindustry, Stanley Electric 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.

Stanley Electric Co's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Stanley Electric Co's Interest Coverage distribution charts can be found below:

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

Stanley Electric 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.

Stanley Electric Co's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, Stanley Electric Co's Interest Expense was 円-176 Mil. Its Operating Income was 円35,835 Mil. And its Long-Term Debt & Capital Lease Obligation was 円2,788 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	35835	/	-176
	=	203.61

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

Here, for the three months ended in Dec. 2023, Stanley Electric Co's Interest Expense was 円-66 Mil. Its Operating Income was 円13,336 Mil. And its Long-Term Debt & Capital Lease Obligation was 円2,799 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	13336	/	-66
	=	202.06

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

Stanley Electric Co (TSE:6923) 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 .

Stanley Electric Co Interest Coverage Related Terms

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

Stanley Electric Co (TSE:6923) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Stanley Electric Co Ltd (TSE:6923) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

STAA:Germany

Address

2-9-13 Nakameguro, Meguro-ku, Tokyo, JPN, 153-8636

Website

http://www.stanley.co.jp

Stanley Electric Co Ltd makes LED lighting products and operates under three business segments: automotive equipment, electronic components, and applied electronic products. In its automotive equipment business, Stanley Electric produces and sells LED and HID headlamps, rear combination lamps, fog lamps, and automotive and LED bulbs. This business segment generates the lion's share of sales. In its other segments, Stanley Electric makes LEDs, infrared LED lamps, optical sensors, LCDs, subminiature lamps, backlight units for LCDs, flash units for cameras, and operation panels. The largest end markets include Japan, China and Asia-Pacific, and the Americas.

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