Digicore Holdings (JSE:DGC) Interest Coverage : 6.02 (As of Dec. 2014)

Digicore Holdings Interest Coverage Chart

Digicore Holdings Annual Data
	Trend	Jun05	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13	Jun14
Interest Coverage		Get a 7-Day Free Trial					14.82	13.36	7.55	-	1.14

Digicore Holdings Semi-Annual Data
	Jun02	Jun03	Jun04	Jun05	Jun06	Jun07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14
Interest Coverage	Get a 7-Day Free Trial															3.55	-	4.20	-	6.02

Competitive Comparison of Digicore Holdings's Interest Coverage

For the Scientific & Technical Instruments subindustry, Digicore Holdings'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.

Digicore Holdings's Interest Coverage Distribution in the Hardware Industry

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

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

Digicore Holdings 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Digicore Holdings's Interest Coverage for the fiscal year that ended in Jun. 2014 is calculated as

Here, for the fiscal year that ended in Jun. 2014, Digicore Holdings's Interest Expense was R-14.3 Mil. Its Operating Income was R16.3 Mil. And its Long-Term Debt & Capital Lease Obligation was R8.0 Mil.

Digicore Holdings's Interest Coverage for the quarter that ended in Dec. 2014 is calculated as

Here, for the six months ended in Dec. 2014, Digicore Holdings's Interest Expense was R-5.5 Mil. Its Operating Income was R33.2 Mil. And its Long-Term Debt & Capital Lease Obligation was R9.3 Mil.

* 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.

Digicore Holdings  (JSE:DGC) 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 .

Digicore Holdings Interest Coverage Related Terms

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Digicore Holdings (JSE:DGC) Business Description