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Gordon Creek Energy (FRA:M2Y1) Interest Coverage : 0 (At Loss) (As of Oct. 2015)


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What is Gordon Creek Energy 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. Gordon Creek Energy's Operating Income for the three months ended in Oct. 2015 was €-0.19 Mil. Gordon Creek Energy's Interest Expense for the three months ended in Oct. 2015 was €-0.49 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 Gordon Creek Energy's Interest Coverage or its related term are showing as below:


FRA:M2Y1's Interest Coverage is not ranked *
in the Oil & Gas industry.
Industry Median: 6.575
* 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.


Gordon Creek Energy Interest Coverage Historical Data

The historical data trend for Gordon Creek Energy'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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Gordon Creek Energy Interest Coverage Chart

Gordon Creek Energy Annual Data
Trend Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15
Interest Coverage
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Gordon Creek Energy Quarterly Data
Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15
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Competitive Comparison of Gordon Creek Energy's Interest Coverage

For the Oil & Gas E&P subindustry, Gordon Creek Energy'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.


Gordon Creek Energy's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Gordon Creek Energy's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Gordon Creek Energy's Interest Coverage falls into.



Gordon Creek Energy 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.

Gordon Creek Energy's Interest Coverage for the fiscal year that ended in Jan. 2015 is calculated as

Here, for the fiscal year that ended in Jan. 2015, Gordon Creek Energy's Interest Expense was €-0.99 Mil. Its Operating Income was €-0.94 Mil. And its Long-Term Debt & Capital Lease Obligation was €0.00 Mil.

Gordon Creek Energy did not have earnings to cover the interest expense.

Gordon Creek Energy's Interest Coverage for the quarter that ended in Oct. 2015 is calculated as

Here, for the three months ended in Oct. 2015, Gordon Creek Energy's Interest Expense was €-0.49 Mil. Its Operating Income was €-0.19 Mil. And its Long-Term Debt & Capital Lease Obligation was €3.05 Mil.

Gordon Creek Energy did not have earnings to cover the interest expense.

* 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.


Gordon Creek Energy  (FRA:M2Y1) 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 .


Gordon Creek Energy Interest Coverage Related Terms

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


Gordon Creek Energy (FRA:M2Y1) Business Description

Traded in Other Exchanges
N/A
Address
734, 7th Avenue South West, Suite 1350, Calgary, AB, CAN, T2P 3P8
Gordon Creek Energy Inc is engaged in the acquisition, exploration, development, and production of oil and natural gas properties located in the United States of America. Its projects include Gordon Creek Property; and Weston County.

Gordon Creek Energy (FRA:M2Y1) Headlines

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