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CVC Property Fund (ASX:CJT) Interest Coverage : 3.17 (As of Dec. 2014)


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What is CVC Property Fund 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. CVC Property Fund's Operating Income for the six months ended in Dec. 2014 was A$1.56 Mil. CVC Property Fund's Interest Expense for the six months ended in Dec. 2014 was A$-0.49 Mil. CVC Property Fund's interest coverage for the quarter that ended in Dec. 2014 was 3.17. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for CVC Property Fund's Interest Coverage or its related term are showing as below:

ASX:CJT' s Interest Coverage Range Over the Past 10 Years
Min: 0   Med: 0   Max: 2.85
Current: 2.85


ASX:CJT's Interest Coverage is not ranked
in the Real Estate industry.
Industry Median: 4 vs ASX:CJT: 2.85

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


CVC Property Fund Interest Coverage Historical Data

The historical data trend for CVC Property Fund'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.

* Premium members only.

CVC Property Fund Interest Coverage Chart

CVC Property Fund Annual Data
Trend Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.93 - 1.82 1.58

CVC Property Fund Semi-Annual Data
Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.68 1.98 0.77 2.55 3.17

Competitive Comparison of CVC Property Fund's Interest Coverage

For the Real Estate Services subindustry, CVC Property Fund'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.


CVC Property Fund's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, CVC Property Fund's Interest Coverage distribution charts can be found below:

* The bar in red indicates where CVC Property Fund's Interest Coverage falls into.



CVC Property Fund 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.

CVC Property Fund's Interest Coverage for the fiscal year that ended in Jun. 2014 is calculated as

Here, for the fiscal year that ended in Jun. 2014, CVC Property Fund's Interest Expense was A$-1.16 Mil. Its Operating Income was A$1.83 Mil. And its Long-Term Debt & Capital Lease Obligation was A$16.15 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2014 )/Interest Expense (A: Jun. 2014 )
=-1*1.829/-1.16
=1.58

CVC Property Fund's Interest Coverage for the quarter that ended in Dec. 2014 is calculated as

Here, for the six months ended in Dec. 2014, CVC Property Fund's Interest Expense was A$-0.49 Mil. Its Operating Income was A$1.56 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.00 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2014 )/Interest Expense (Q: Dec. 2014 )
=-1*1.557/-0.491
=3.17

* 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.

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


CVC Property Fund  (ASX:CJT) 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 .


CVC Property Fund Interest Coverage Related Terms

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


CVC Property Fund (ASX:CJT) Business Description

Traded in Other Exchanges
N/A
Address
CVC Property Fund (CJT, formerly Taragon Property Fund) is a listed registered managed investment scheme domiciled in Australia.

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