AVANIR Pharmaceuticals (FRA:AV2B) Interest Coverage : 0 (At Loss) (As of Sep. 2014)

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What is AVANIR Pharmaceuticals 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. AVANIR Pharmaceuticals's Operating Income for the three months ended in Sep. 2014 was €-9.84 Mil. AVANIR Pharmaceuticals's Interest Expense for the three months ended in Sep. 2014 was €-0.50 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 AVANIR Pharmaceuticals's Interest Coverage or its related term are showing as below:

FRA:AV2B's Interest Coverage is not ranked ^*
in the Drug Manufacturers industry.
Industry Median: 12.25
* 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.

AVANIR Pharmaceuticals Interest Coverage Historical Data

The historical data trend for AVANIR Pharmaceuticals'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.

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AVANIR Pharmaceuticals Interest Coverage Chart

AVANIR Pharmaceuticals Annual Data

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Interest Coverage

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AVANIR Pharmaceuticals Quarterly Data
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Competitive Comparison of AVANIR Pharmaceuticals's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, AVANIR Pharmaceuticals'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.

AVANIR Pharmaceuticals's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, AVANIR Pharmaceuticals's Interest Coverage distribution charts can be found below:

* The bar in red indicates where AVANIR Pharmaceuticals's Interest Coverage falls into.

AVANIR Pharmaceuticals 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.

AVANIR Pharmaceuticals's Interest Coverage for the fiscal year that ended in Sep. 2014 is calculated as

Here, for the fiscal year that ended in Sep. 2014, AVANIR Pharmaceuticals's Interest Expense was €-2.57 Mil. Its Operating Income was €-35.96 Mil. And its Long-Term Debt & Capital Lease Obligation was €0.00 Mil.

AVANIR Pharmaceuticals did not have earnings to cover the interest expense.

AVANIR Pharmaceuticals's Interest Coverage for the quarter that ended in Sep. 2014 is calculated as

Here, for the three months ended in Sep. 2014, AVANIR Pharmaceuticals's Interest Expense was €-0.50 Mil. Its Operating Income was €-9.84 Mil. And its Long-Term Debt & Capital Lease Obligation was €0.00 Mil.

AVANIR Pharmaceuticals did not have earnings to cover the interest expense.

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

AVANIR Pharmaceuticals (FRA:AV2B) 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 .

AVANIR Pharmaceuticals Interest Coverage Related Terms

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

AVANIR Pharmaceuticals (FRA:AV2B) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » AVANIR Pharmaceuticals (FRA:AV2B) » Definitions » Interest Coverage

Traded in Other Exchanges

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Address

Website

http://www.avanir.com

Avanir Pharmaceuticals was incorporated in California in August 1988 and was reincorporated in Delaware in March 2009. The Company is a biopharmaceutical company focused on acquiring, developing and commercializing novel therapeutic products for the treatment of central nervous system disorders. The Company commenced promotion of NUEDEXTA in the United States in February 2011. The Company is also studying AVP-923 for use in different types of neuropathic pain. NUEDEXTA is the first and only FDA-approved treatment for pseudobulbar affect. NUEDEXTA is an combination of two components: dextromethorphan hydrobromide, the ingredient that is harmacologically active in the central nervous system, and quinidine sulfate, a metabolic inhibitor enabling dextromethorphan to reach therapeutic plasma concentrations. The Company currently markets NUEDEXTA to approximately 10,000 physicians and other healthcare providers who specialize in psychiatry, neurology or geriatric medicine and practice in outpatient or long-term care settings. NUEDEXTA may face competition from several products: Antidepressants, including Prozac, Celexa, Zoloft, Paxil, Elavil and Pamelor and others; Atypical antipsychotic agents, including Zyprexa, Risperdal, Seroquel, Abilify, Geodon and others; and Miscellaneous agents, including Symmetrel, Lithium and others. The Company is subject to regulation under the Occupational Safety and Health Act, the Environmental Protection Act, the Toxic Substance Control Act, the Export Control Act and other present and future laws of general application.

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