Hanwa Co (TSE:8078) Interest Coverage : 7.40 (As of Dec. 2023)

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What is Hanwa 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. Hanwa Co's Operating Income for the three months ended in Dec. 2023 was 円16,128 Mil. Hanwa Co's Interest Expense for the three months ended in Dec. 2023 was 円-2,180 Mil. Hanwa Co's interest coverage for the quarter that ended in Dec. 2023 was 7.40. The higher the ratio, the stronger the company's financial strength is.

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

TSE:8078' s Interest Coverage Range Over the Past 10 Years
Min: 4.97 Med: 6.72 Max: 15.31
Current: 5.68

TSE:8078's Interest Coverage is ranked better than
51.78% of 394 companies
in the Conglomerates industry
Industry Median: 5.035 vs TSE:8078: 5.68

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

Hanwa Co Interest Coverage Historical Data

The historical data trend for Hanwa 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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Hanwa Co Interest Coverage Chart

Hanwa Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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4.97

7.77

15.31

6.43

5.68

Hanwa 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															3.02	7.47	4.51	7.40	3.35

Competitive Comparison of Hanwa Co's Interest Coverage

For the Conglomerates subindustry, Hanwa 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.

Hanwa Co's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Hanwa Co's Interest Coverage distribution charts can be found below:

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

Hanwa 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.

Hanwa 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, Hanwa Co's Interest Expense was 円-8,754 Mil. Its Operating Income was 円49,723 Mil. And its Long-Term Debt & Capital Lease Obligation was 円289,957 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	49723	/	-8754
	=	5.68

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

Here, for the three months ended in Dec. 2023, Hanwa Co's Interest Expense was 円-2,180 Mil. Its Operating Income was 円16,128 Mil. And its Long-Term Debt & Capital Lease Obligation was 円287,990 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	16128	/	-2180
	=	7.40

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

Hanwa Co (TSE:8078) 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 .

Hanwa Co Interest Coverage Related Terms

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

Hanwa Co (TSE:8078) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Hanwa Co Ltd (TSE:8078) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HW4:Germany

Address

1-13-1, Tsukiji, Chuo-ku, Ginza Shochiku Square Building, Tokyo, JPN, 104-8429

Website

https://www.hanwa.co.jp

Hanwa Co Ltd is a Japan-based trading company with seven segments. The steel segment handles steel products and building materials. The metals and alloys segment supplies chromium, manganese, and other metals. The nonferrous metals segment recycles aluminum, copper, nickel, and chromium. The food products segment handles seafood. The petroleum and chemicals segment trades petroleum products and others. The overseas sales subsidiaries segment comprises Hanwa's overseas subsidiaries in North America and Asia. The other business segment imports forest products and handles amusement facilities and industrial machinery. Steel, petroleum and chemicals, and metals and alloys are the three largest segments by revenue contribution. Hanwa generates most of its revenue from Japanese domestic market.

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