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Dow Chemical Co (NYSE:DOW)
Interest Expense
$-1,101 Mil (TTM As of Dec. 2013)

Interest Expense is the amount reported by a company or individual as an expense for borrowed money. Dow Chemical Co's interest expense for the three months ended in Dec. 2013 was $-262 Mil. Its interest expense for the trailing twelve months (TTM) ended in Dec. 2013 was $-1,101 Mil.

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. Dow Chemical Co's Operating Income for the three months ended in Dec. 2013 was $908 Mil. Dow Chemical Co's Interest Expense for the three months ended in Dec. 2013 was $-262 Mil. Dow Chemical Co's interest coverage for the quarter that ended in Dec. 2013 was 3.47. The higher the ratio, the stronger the company’s financial strength is.


Definition

Interest Expense is the amount reported by a company or individual as an expense for borrowed money.

Dow Chemical Co Interest Expense for the trailing twelve months (TTM) ended in Dec. 2013 was -296 (Mar. 2013 ) + -279 (Jun. 2013 ) + -264 (Sep. 2013 ) + -262 (Dec. 2013 ) = $-1,101 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

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. The higher, the better.

Dow Chemical Co's interest expense for the three months ended in Dec. 2013 was $-262 Mil. Its operating income for the three months ended in Dec. 2013 was $908 Mil. And its Long-Term Debt for the three months ended in Dec. 2013 was $16,820 Mil.

Dow Chemical Co's Interest Coverage for the quarter that ended in Dec. 2013 is calculated as

Interest Coverage=-1*Operating Income (Q: Dec. 2013 )/Interest Expense (Q: Dec. 2013 )
=-1*908/-262
=3.47

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The higher the ratio, the stronger the company’s financial strength is.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Dow Chemical Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Interest Expense -747-702-616-584-648-1,571-1,473-1,341-1,269-1,101

Dow Chemical Co Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Interest Expense -305-331-329-312-318-310-296-279-264-262
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