GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Blue Zone Inc (OTCPK:BLZN) » Definitions » Interest Coverage

Blue Zone (Blue Zone) Interest Coverage : 0 (At Loss) (As of Dec. 2001)


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

What is Blue Zone 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. Blue Zone's Operating Income for the six months ended in Dec. 2001 was $0.00 Mil. Blue Zone's Interest Expense for the six months ended in Dec. 2001 was $-0.05 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


BLZN's Interest Coverage is not ranked *
in the Media - Diversified industry.
Industry Median: 11.54
* 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.


Blue Zone Interest Coverage Historical Data

The historical data trend for Blue Zone'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.

Blue Zone Interest Coverage Chart

Blue Zone Annual Data
Trend Dec99 Dec00 Dec01
Interest Coverage
No Debt - -

Blue Zone Semi-Annual Data
Dec99 Dec00 Dec01
Interest Coverage No Debt - -

Competitive Comparison of Blue Zone's Interest Coverage

For the Broadcasting subindustry, Blue Zone'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.


Blue Zone's Interest Coverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Blue Zone's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Blue Zone's Interest Coverage falls into.



Blue Zone 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.

Blue Zone's Interest Coverage for the fiscal year that ended in Dec. 2001 is calculated as

Here, for the fiscal year that ended in Dec. 2001, Blue Zone's Interest Expense was $-0.05 Mil. Its Operating Income was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.60 Mil.

Blue Zone's Interest Coverage for the quarter that ended in Dec. 2001 is calculated as

Here, for the six months ended in Dec. 2001, Blue Zone's Interest Expense was $-0.05 Mil. Its Operating Income was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.60 Mil.

* 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.


Blue Zone  (OTCPK:BLZN) 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 .


Blue Zone Interest Coverage Related Terms

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


Blue Zone (Blue Zone) Business Description

Traded in Other Exchanges
N/A
Address

Blue Zone (Blue Zone) Headlines

No Headlines