InvenSense (InvenSense) Interest Coverage : 0 (At Loss) (As of Dec. 2016)

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What is InvenSense 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. InvenSense's Operating Income for the three months ended in Dec. 2016 was $-13.8 Mil. InvenSense's Interest Expense for the three months ended in Dec. 2016 was $-3.0 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 InvenSense's Interest Coverage or its related term are showing as below:

INVN's Interest Coverage is not ranked ^*
in the Semiconductors industry.
Industry Median: 20.19
* 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.

InvenSense Interest Coverage Historical Data

The historical data trend for InvenSense'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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InvenSense Interest Coverage Chart

InvenSense Annual Data

Trend

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Interest Coverage

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2,137.00

28,329.00

2.50

0.55

0.26

InvenSense Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
Interest Coverage	Get a 7-Day Free Trial															3.51	-	-	-	-

Competitive Comparison of InvenSense's Interest Coverage

For the Semiconductors subindustry, InvenSense'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.

InvenSense's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, InvenSense's Interest Coverage distribution charts can be found below:

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

InvenSense 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.

InvenSense's Interest Coverage for the fiscal year that ended in Mar. 2016 is calculated as

Here, for the fiscal year that ended in Mar. 2016, InvenSense's Interest Expense was $-11.4 Mil. Its Operating Income was $2.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $153.5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2016 )	/	Interest Expense (A: Mar. 2016 )
	=	-1	*	2.897	/	-11.358
	=	0.26

InvenSense's Interest Coverage for the quarter that ended in Dec. 2016 is calculated as

Here, for the three months ended in Dec. 2016, InvenSense's Interest Expense was $-3.0 Mil. Its Operating Income was $-13.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $159.8 Mil.

InvenSense did not have earnings to cover the interest expense.

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

InvenSense (NYSE:INVN) 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 .

InvenSense Interest Coverage Related Terms

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

InvenSense (InvenSense) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » InvenSense Inc (NYSE:INVN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.invensense.com

InvenSense Inc was incorporated in the State of California in June 2003 and reincorporated in the State of Delaware in October 2004. The Company designs, develops, markets and sells Micro-Electro-Mechanical Systems ("MEMS") sensors, including accelerometers, gyroscopes, barometers, compasses, and microphones, with proprietary algorithms, processors and firmware that synthesize and calibrate sensor output data for the mobile, wearable, smart home, gaming, industrial, and automotive market segments. The Company delivers solutions based on its advanced motion and sound technology targeting solutions such as: smartphones, tablets, wearables, console and portable video gaming devices, digital television and set-top box remote controls, fitness accessories, sports equipment, digital still cameras, automobiles, ultra-books, laptops, hearing aids, stabilization systems, tools, navigation devices, remote controlled toys and other household consumer and industrial devices. The Company's five principal types of motion and also audio sensors include; Accelerometers that measure linear acceleration and tilt angle; Gyroscopes (Gyros) measures the angular rate of rotational movement about one or more axes, such as in a video game controller, or jitter, such as in an image stabilizer; Magnetic Sensors (Compasses) detects magnetic fields and measure their absolute position relative to the Earth's magnetic north and nearby magnetic materials; Pressure Sensors (Barometers) measures relative and absolute altitude through the analysis of changing atmospheric pressure; and Audio Sensors (Microphones) detects audible sound, as well as ultrasound in some use cases. The Company faces competition from Analog Devices, Inc., Epson Toyocom Corporation, Kionix, Inc. (a wholly owned subsidiary of Rohm Co., Ltd.), Knowles Corporation, MEMSIC, Inc., Murata Manufacturing Co., Ltd., Panasonic Corporation, Robert Bosch GmbH, Sony Corporation and STMicroelectronics N.V. (STMicro).

Executives

Emiko Higashi	director	C/O GILO VENTURES, 175 ALMENDRAL AVENUE, ATHERTON CA 94027
Mark P Dentinger	officer: Chief Financial Officer
Jon A Olson	director	2100 LOGIC DRIVE, SAN JOSE CA 95124
Eric B Stang	director
Behrooz L. Abdi	director, officer: CEO and President	1875 CHARLESTON ROAD, MOUNTAIN VIEW CA 94043
Timothy M Wilson	director	1197 BOREGAS AVENUE, SUNNYVALE CA 94089
R Douglas Norby	director	C/O MAGNACHIP SEMICONDUCTOR, INC., 20400 STEVENS CREEK BOULEVARD, SUITE 370, CUPERTINO CA 95014
Partech U.s. Partners Iv, L.l.c.	10 percent owner	C/O 50 CALIFORNIA STREET, SUITE 3200, SAN FRANCISCO CA 94111
Vincent Worms	10 percent owner	C/O 50 CALIFORNIA STREET, SUITE 3200, SAN FRANCISCO CA 94111
45th Parallel Llc	10 percent owner	C/O 50 CALIFORNIA STREET, SUITE 3200, SAN FRANCISCO CA 94111
Par Sf Ii, L.l.c.	10 percent owner	C/O 50 CALIFORNIA STREET, SUITE 3200, SAN FRANCISCO CA 94111