Vantage Goldfields (ASX:VGO) Interest Coverage : 0 (At Loss) (As of Jun. 2014)

View and export this data going back to . Start your Free Trial

What is Vantage Goldfields 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. Vantage Goldfields's Operating Income for the six months ended in Jun. 2014 was A$-0.74 Mil. Vantage Goldfields's Interest Expense for the six months ended in Jun. 2014 was A$-0.83 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Vantage Goldfields Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

ASX:VGO' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 13.12 Max: 25.27
Current: 0.21

ASX:VGO's Interest Coverage is not ranked
in the Metals & Mining industry.
Industry Median: No Debt vs ASX:VGO: 0.21

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

Vantage Goldfields Interest Coverage Historical Data

The historical data trend for Vantage Goldfields'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.

Vantage Goldfields Interest Coverage Chart

Vantage Goldfields Annual Data

Trend

Dec11

Dec12

Dec13

Interest Coverage

25.27

0.96

Vantage Goldfields Semi-Annual Data
	Jun10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14
Interest Coverage	Get a 7-Day Free Trial			31.08	19.37	-	32.82	-

Competitive Comparison of Vantage Goldfields's Interest Coverage

For the Gold subindustry, Vantage Goldfields'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.

Vantage Goldfields's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Vantage Goldfields's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Vantage Goldfields's Interest Coverage falls into.

Vantage Goldfields 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.

Vantage Goldfields's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, Vantage Goldfields's Interest Expense was A$-0.25 Mil. Its Operating Income was A$0.24 Mil. And its Long-Term Debt & Capital Lease Obligation was A$1.87 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2013 )	/	Interest Expense (A: Dec. 2013 )
	=	-1	*	0.236	/	-0.245
	=	0.96

Vantage Goldfields's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the six months ended in Jun. 2014, Vantage Goldfields's Interest Expense was A$-0.83 Mil. Its Operating Income was A$-0.74 Mil. And its Long-Term Debt & Capital Lease Obligation was A$11.95 Mil.

Vantage Goldfields did not have earnings to cover the interest expense.

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

Vantage Goldfields (ASX:VGO) 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 .

Vantage Goldfields Interest Coverage Related Terms

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

Vantage Goldfields (ASX:VGO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Vantage Goldfields Ltd (ASX:VGO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.vantagegoldfields.com

Vantage Goldfields Ltd is an Australian company engaged in the mining and exploration of gold in the Barberton Greenstone Belt of South Africa. The company's mining operations are carried out in the Lily Mine, Barbrook Mines Complex, and the Taylors Mine. The company produces gold from its Lily and Barbrook Mines with a steady rise in the production collectively.

Vantage Goldfields (ASX:VGO) Headlines

No Headlines