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Zale Corp (NYSE:ZLC)
Interest Expense
$-23 Mil (TTM As of Jan. 2014)

Interest Expense is the amount reported by a company or individual as an expense for borrowed money. Zale Corp's interest expense for the three months ended in Jan. 2014 was $-6 Mil. Its interest expense for the trailing twelve months (TTM) ended in Jan. 2014 was $-23 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. Zale Corp's Operating Income for the three months ended in Jan. 2014 was $60 Mil. Zale Corp's Interest Expense for the three months ended in Jan. 2014 was $-6 Mil. Zale Corp's interest coverage for the quarter that ended in Jan. 2014 was 9.76. 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.

Zale Corp Interest Expense for the trailing twelve months (TTM) ended in Jan. 2014 was -5.668 (Apr. 2013 ) + -5.584 (Jul. 2013 ) + -5.609 (Oct. 2013 ) + -6.096 (Jan. 2014 ) = $-23 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.

Zale Corp's interest expense for the three months ended in Jan. 2014 was $-6 Mil. Its operating income for the three months ended in Jan. 2014 was $60 Mil. And its Long-Term Debt for the three months ended in Jan. 2014 was $445 Mil.

Zale Corp's Interest Coverage for the quarter that ended in Jan. 2014 is calculated as

Interest Coverage=-1*Operating Income (Q: Jan. 2014 )/Interest Expense (Q: Jan. 2014 )
=-1*59.522/-6.096
=9.76

* 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.

Zale Corp Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
Interest Expense -8-8-11-19-12-10-16-83-45-23

Zale Corp Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
Interest Expense -10-10-10-15-6-6-6-6-6-6
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