Kaydon (FRA:KYD) Interest Coverage : 19.22 (As of Jun. 2013)

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What is Kaydon 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. Kaydon's Operating Income for the three months ended in Jun. 2013 was €13.0 Mil. Kaydon's Interest Expense for the three months ended in Jun. 2013 was €-0.7 Mil. Kaydon's interest coverage for the quarter that ended in Jun. 2013 was 19.22. The higher the ratio, the stronger the company's financial strength is.

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

FRA:KYD' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 3.4
Current: 3.39

FRA:KYD's Interest Coverage is not ranked
in the Industrial Products industry.
Industry Median: 13.71 vs FRA:KYD: 3.39

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

Kaydon Interest Coverage Historical Data

The historical data trend for Kaydon'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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Kaydon Interest Coverage Chart

Kaydon Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Interest Coverage

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11.27

289.57

352.59

180.95

4.82

Kaydon Quarterly Data
	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13
Interest Coverage	Get a 7-Day Free Trial															21.96	-	11.83	17.56	19.22

Competitive Comparison of Kaydon's Interest Coverage

For the Tools & Accessories subindustry, Kaydon'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.

Kaydon's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kaydon's Interest Coverage distribution charts can be found below:

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

Kaydon 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.

Kaydon's Interest Coverage for the fiscal year that ended in Dec. 2012 is calculated as

Here, for the fiscal year that ended in Dec. 2012, Kaydon's Interest Expense was €-2.4 Mil. Its Operating Income was €11.5 Mil. And its Long-Term Debt & Capital Lease Obligation was €126.5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2012 )	/	Interest Expense (A: Dec. 2012 )
	=	-1	*	11.515	/	-2.389
	=	4.82

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

Here, for the three months ended in Jun. 2013, Kaydon's Interest Expense was €-0.7 Mil. Its Operating Income was €13.0 Mil. And its Long-Term Debt & Capital Lease Obligation was €118.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2013 )	/	Interest Expense (Q: Jun. 2013 )
	=	-1	*	13.047	/	-0.679
	=	19.22

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

Kaydon (FRA:KYD) 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 .

Kaydon Interest Coverage Related Terms

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

Kaydon (FRA:KYD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Kaydon Corporation (FRA:KYD) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Website

http://www.kaydon.com

Kaydon Corporation was incorporated in 1983. The Company is a designer and manufacturer of custom engineered, performance-critical products supplying a broad and diverse customer base. The Company's main products now include bearings and components, filters and filter housings, custom rings, shaft seals, linear deceleration products, specialty balls, fuel cleansing systems, gas-phase air filtration systems and replacement media, industrial presses and metal alloy products. These products are used by customers in a variety of alternative energy, specialized robotics, medical, material handling, machine tool positioning, aerospace, defense, security, electronic and other industrial applications. The Company has two reportable segments and other operating segments engaged in the manufacture and sale of the following: Friction Control Products - complex components used in alternative energy, specialized robotics, medical, aerospace, defense, security, electronic, material handling, construction and other industrial applications. Products include anti-friction bearings, split roller bearings and specialty balls; Velocity Control Products - complex components used in specialized robotics, material handling, machine tool, medical, amusement and other industrial applications. Products include industrial shock absorbers, safety shock absorbers, velocity controls, gas springs and rotary dampers; and Other Industrial Products - complex and standard ring and seal products, filter elements and liquid and gas-phase filtration systems, metal alloys, machine tool components, presses, dies and benders used in a variety of applications. The Company sells its products in each segment through a sales organization consisting of salespersons and representatives located primarily throughout North America, Europe and Asia. The Company holds various patents, patent applications, licenses, trademarks and trade names. The Company's competitors include a number of other well-established manufacturers, as well as other smaller companies.

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