Measurement Specialties (FRA:MEG) Interest Coverage : 4.37 (As of Jun. 2014)

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

What is Measurement Specialties 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. Measurement Specialties's Operating Income for the three months ended in Jun. 2014 was €3.5 Mil. Measurement Specialties's Interest Expense for the three months ended in Jun. 2014 was €-0.8 Mil. Measurement Specialties's interest coverage for the quarter that ended in Jun. 2014 was 4.37. The higher the ratio, the stronger the company's financial strength is.

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

FRA:MEG' s Interest Coverage Range Over the Past 10 Years
Min: 1.97 Med: 9.5 Max: 9999.99
Current: 12.42

FRA:MEG's Interest Coverage is not ranked
in the Hardware industry.
Industry Median: 12.685 vs FRA:MEG: 12.42

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

Measurement Specialties Interest Coverage Historical Data

The historical data trend for Measurement Specialties'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.

Measurement Specialties Interest Coverage Chart

Measurement Specialties Annual Data

Trend

Mar05

Mar06

Mar07

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Interest Coverage

Get a 7-Day Free Trial

2.23

11.87

13.95

15.06

15.57

Measurement Specialties Quarterly Data
	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14
Interest Coverage	Get a 7-Day Free Trial															13.80	16.03	15.20	17.64	4.37

Competitive Comparison of Measurement Specialties's Interest Coverage

For the Scientific & Technical Instruments subindustry, Measurement Specialties'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.

Measurement Specialties's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Measurement Specialties's Interest Coverage distribution charts can be found below:

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

Measurement Specialties 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.

Measurement Specialties's Interest Coverage for the fiscal year that ended in Mar. 2014 is calculated as

Here, for the fiscal year that ended in Mar. 2014, Measurement Specialties's Interest Expense was €-2.3 Mil. Its Operating Income was €36.2 Mil. And its Long-Term Debt & Capital Lease Obligation was €90.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2014 )	/	Interest Expense (A: Mar. 2014 )
	=	-1	*	36.173	/	-2.323
	=	15.57

Measurement Specialties's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the three months ended in Jun. 2014, Measurement Specialties's Interest Expense was €-0.8 Mil. Its Operating Income was €3.5 Mil. And its Long-Term Debt & Capital Lease Obligation was €157.7 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2014 )	/	Interest Expense (Q: Jun. 2014 )
	=	-1	*	3.52	/	-0.806
	=	4.37

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

Measurement Specialties (FRA:MEG) 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 .

Measurement Specialties Interest Coverage Related Terms

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

Measurement Specialties (FRA:MEG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Measurement Specialties Inc (FRA:MEG) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Website

http://www.meas-spec.com

Measurement Specialties, Inc. is a New Jersey corporation organized in 1981. The Company is engaged in the design, development and manufacture of sensors and sensor-based systems for original equipment manufacturers (OEM) and end users, based on a broad portfolio of proprietary technology and typically characterized by the MEAS brand name. The Company is a multi-national corporation with fifteen main manufacturing facilities strategically located in the United States, China and Europe, enabling the Company to produce and market an array of sensors that use advanced technologies to measure precise ranges of physical characteristics. These sensors are used for engine and vehicle, medical, general industrial, consumer and home appliance, military/aerospace, and test and measurement applications. The Company's products include sensors for measuring pressure, linear/rotary position, force, torque, piezoelectric polymer film sensors, custom microstructures, load cells, vibrations and acceleration, optical absorption, humidity, gas concentration, gas flow rate, temperature, fluid properties and fluid level. The Company's advanced technologies include piezoresistive silicon, polymer and ceramic piezoelectric materials, application specific integrated circuits, micro-electromechanical systems ('MEMS'), foil strain gauges, electromagnetic force balance systems, fluid capacitive devices, linear and rotational variable differential transformers, anisotropic magneto-resistive devices, electromagnetic displacement sensors, hygroscopic capacitive structures, ultrasonic measurement systems, optical measurement systems, negative thermal coefficient ('NTC') ceramic sensors, 3-6 DOF (degree of freedom) force/torque structures, complex mechanical resonators, magnetic reed switches, high frequency multipoint scanning algorithms, and high precision submersible hydrostatic level detection. The Company's competitors include small independent companies and divisions of large corporations such as Danaher, General Electric, Schneider-Electric and Honeywell.