Corinthian Colleges (FRA:CH7) Interest Coverage : 9.94 (As of Jun. 2013)

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What is Corinthian Colleges 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. Corinthian Colleges's Operating Income for the six months ended in Jun. 2013 was €39 Mil. Corinthian Colleges's Interest Expense for the six months ended in Jun. 2013 was €-4 Mil. Corinthian Colleges's interest coverage for the quarter that ended in Jun. 2013 was 9.94. The higher the ratio, the stronger the company's financial strength is.

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

FRA:CH7' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 9.94
Current: 9.94

FRA:CH7's Interest Coverage is not ranked
in the Education industry.
Industry Median: 15.51 vs FRA:CH7: 9.94

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

Corinthian Colleges Interest Coverage Historical Data

The historical data trend for Corinthian Colleges'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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Corinthian Colleges Interest Coverage Chart

Corinthian Colleges Annual Data

Trend

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Interest Coverage

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43.92

48.07

4.62

9.94

Corinthian Colleges Semi-Annual Data
	Jun98	Jun99	Jun00	Jun01	Jun02	Jun03	Jun04	Jun05	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13
Interest Coverage	Get a 7-Day Free Trial											43.92	48.07	-	4.62	9.94

Competitive Comparison of Corinthian Colleges's Interest Coverage

For the Education & Training Services subindustry, Corinthian Colleges'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.

Corinthian Colleges's Interest Coverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Corinthian Colleges's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Corinthian Colleges's Interest Coverage falls into.

Corinthian Colleges 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.

Corinthian Colleges's Interest Coverage for the fiscal year that ended in Jun. 2013 is calculated as

Here, for the fiscal year that ended in Jun. 2013, Corinthian Colleges's Interest Expense was €-4 Mil. Its Operating Income was €39 Mil. And its Long-Term Debt & Capital Lease Obligation was €102 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2013 )	/	Interest Expense (A: Jun. 2013 )
	=	-1	*	39.068	/	-3.929
	=	9.94

Corinthian Colleges's Interest Coverage for the quarter that ended in Jun. 2013 is calculated as

Here, for the six months ended in Jun. 2013, Corinthian Colleges's Interest Expense was €-4 Mil. Its Operating Income was €39 Mil. And its Long-Term Debt & Capital Lease Obligation was €102 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2013 )	/	Interest Expense (Q: Jun. 2013 )
	=	-1	*	39.068	/	-3.929
	=	9.94

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

Corinthian Colleges (FRA:CH7) 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 .

Corinthian Colleges Interest Coverage Related Terms

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

Corinthian Colleges (FRA:CH7) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Corinthian Colleges Inc (FRA:CH7) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.cci.edu

Corinthian Colleges Inc is a post-secondary education company in the United States and Canada. It offers diploma programs and associate, bachelors and master's degrees through a single operating segment. As of June 30, 2013, it has a student enrollment of 81,284 and operated 97 schools in 25 states, and 14 schools in the province of Ontario, Canada. The Company has acquired 76 colleges including the Heald acquisition and has opened 35 branch campuses. Its training program areas include healthcare, criminal justice, business, mechanical, trades, and information technology. The Company's diploma programs provide students with the requisite knowledge and job skills for entry-level positions in their chosen career.Key elements of its operating strategy includes emphasize Student Outcomes, create an Effective Learning Environment, focus on Attractive Markets, manage School and Program Performance, Standardize Key Business Processes and Centralize Key Functions.

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