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Avistar Communications (Avistar Communications) Interest Coverage : No Debt (1) (As of Mar. 2012)


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What is Avistar Communications 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. Avistar Communications's Operating Income for the three months ended in Mar. 2012 was $-1.39 Mil. Avistar Communications's Interest Expense for the three months ended in Mar. 2012 was $0.00 Mil. Avistar Communications has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) 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.

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


AVSR's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 12.55
* Ranked among companies with meaningful Interest Coverage only.

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


Avistar Communications Interest Coverage Historical Data

The historical data trend for Avistar Communications'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.

Avistar Communications Interest Coverage Chart

Avistar Communications Annual Data
Trend Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only No Debt - - 71.15 -

Avistar Communications Quarterly Data
Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12
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 N/A N/A N/A N/A No Debt

Competitive Comparison of Avistar Communications's Interest Coverage

For the Communication Equipment subindustry, Avistar Communications'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.


Avistar Communications's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Avistar Communications's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Avistar Communications's Interest Coverage falls into.



Avistar Communications 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.

Avistar Communications's Interest Coverage for the fiscal year that ended in Dec. 2011 is calculated as

Here, for the fiscal year that ended in Dec. 2011, Avistar Communications's Interest Expense was $-0.20 Mil. Its Operating Income was $-6.22 Mil. And its Long-Term Debt & Capital Lease Obligation was $3.00 Mil.

Avistar Communications did not have earnings to cover the interest expense.

Avistar Communications's Interest Coverage for the quarter that ended in Mar. 2012 is calculated as

Here, for the three months ended in Mar. 2012, Avistar Communications's Interest Expense was $0.00 Mil. Its Operating Income was $-1.39 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Avistar Communications had no debt (1).

* 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.


Avistar Communications  (OTCPK:AVSR) 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 .


Avistar Communications Interest Coverage Related Terms

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


Avistar Communications (Avistar Communications) Business Description

Traded in Other Exchanges
N/A
Address
1855 South Grant Street, 4th Floor, San Mateo, CA, USA, 94402
Avistar Communications Corp creates technology that provides the missing critical element in unified communications: bringing people in organizations face-to-face, through enhanced communications for the true collaboration anytime, anyplace. The company's solutions include Bandwidth Management, CEBP, Firewall Traversal and Enterprise Endpoints. Its products include Avistar C3 Communicator, Avistar C3 Conference, Avistar C3 Command, Avistar C3 Call Control and Avistar C3 Media Engine.
Executives
R Stephen Heinrichs director, 10 percent owner 141 CASPIAN COURT, SUNNYVALE CA 94089
Jefferies Financial Group Inc. 10 percent owner 520 MADISON AVENUE, NEW YORK NY 10022
Phlcorp Holding Llc 10 percent owner 529 EAST SOUTH TEMPLE, SALT LAKE CITY UT 84102
Baldwin Enterprises, Inc. 10 percent owner 529 EAST SOUTH TEMPLE, SALT LAKE CITY UT 84102
Robert P Latta director 650 PAGE MILL ROAD, PALO ALTO CA 94304

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