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GuruFocus has detected 2 Warning Signs with JC Penney Co Inc $JCP.
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JC Penney Co Inc (NYSE:JCP)
Interest Expense
$-363 Mil (TTM As of Jan. 2017)

Interest Expense is the amount reported by a company or individual as an expense for borrowed money. JC Penney Co Inc's interest expense for the three months ended in Jan. 2017 was $-88 Mil. Its interest expense for the trailing twelve months (TTM) ended in Jan. 2017 was $-363 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. JC Penney Co Inc's Operating Income for the three months ended in Jan. 2017 was $274 Mil. JC Penney Co Inc's Interest Expense for the three months ended in Jan. 2017 was $-88 Mil. JC Penney Co Inc's interest coverage for the quarter that ended in Jan. 2017 was 3.11. The higher the ratio, the stronger the company’s financial strength is. Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Definition

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

JC Penney Co Inc Interest Expense for the trailing twelve months (TTM) ended in Jan. 2017 was -95 (Apr. 2016 ) + -93 (Jul. 2016 ) + -87 (Oct. 2016 ) + -88 (Jan. 2017 ) = $-363 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

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

JC Penney Co Inc's interest expense for the three months ended in Jan. 2017 was $-88 Mil. Its operating income for the three months ended in Jan. 2017 was $274 Mil. And its Long-Term Debt for the three months ended in Jan. 2017 was $4,558 Mil.

JC Penney Co Inc's Interest Coverage for the quarter that ended in Jan. 2017 is calculated as

Interest Coverage=-1*Operating Income (Q: Jan. 2017 )/Interest Expense (Q: Jan. 2017 )
=-1*274/-88
=3.11

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

JC Penney Co Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
Interest Expense -153-225-260-231-227-226-352-406-405-363

JC Penney Co Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
Interest Expense -103-100-98-103-102-102-95-93-87-88
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