GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Tradewinds Corporation Bhd (XKLS:4804) » Definitions » Interest Coverage

Tradewinds Bhd (XKLS:4804) Interest Coverage : 5.93 (As of Jun. 2013)


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

What is Tradewinds Bhd 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. Tradewinds Bhd's Operating Income for the three months ended in Jun. 2013 was RM74.7 Mil. Tradewinds Bhd's Interest Expense for the three months ended in Jun. 2013 was RM-12.6 Mil. Tradewinds Bhd's interest coverage for the quarter that ended in Jun. 2013 was 5.93. The higher the ratio, the stronger the company's financial strength is.

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

XKLS:4804' s Interest Coverage Range Over the Past 10 Years
Min: 0   Med: 0   Max: 0.01
Current: 0.01


XKLS:4804's Interest Coverage is not ranked
in the Conglomerates industry.
Industry Median: 5.13 vs XKLS:4804: 0.01

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


Tradewinds Bhd Interest Coverage Historical Data

The historical data trend for Tradewinds Bhd'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.

Tradewinds Bhd Interest Coverage Chart

Tradewinds Bhd Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Interest Coverage
Get a 7-Day Free Trial 5.64 0.81 4.37 2.28 -

Tradewinds Bhd Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13
Interest Coverage Get a 7-Day Free Trial - 2.01 - 1.99 5.93

Competitive Comparison of Tradewinds Bhd's Interest Coverage

For the Conglomerates subindustry, Tradewinds Bhd'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.


Tradewinds Bhd's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Tradewinds Bhd's Interest Coverage distribution charts can be found below:

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



Tradewinds Bhd 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.

Tradewinds Bhd'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, Tradewinds Bhd's Interest Expense was RM-47.0 Mil. Its Operating Income was RM-304.9 Mil. And its Long-Term Debt & Capital Lease Obligation was RM452.6 Mil.

Tradewinds Bhd did not have earnings to cover the interest expense.

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

Here, for the three months ended in Jun. 2013, Tradewinds Bhd's Interest Expense was RM-12.6 Mil. Its Operating Income was RM74.7 Mil. And its Long-Term Debt & Capital Lease Obligation was RM479.9 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2013 )/Interest Expense (Q: Jun. 2013 )
=-1*74.657/-12.588
=5.93

* 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.


Tradewinds Bhd  (XKLS:4804) 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 .


Tradewinds Bhd Interest Coverage Related Terms

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


Tradewinds Bhd (XKLS:4804) Business Description

Traded in Other Exchanges
N/A
Address
Tradewinds Corporation Bhd, is a diversified investment holding company, which along with its subsidiaries engaged in the provision of hotel services, property investment, sale & development, manufacturing and trading and financial services.

Tradewinds Bhd (XKLS:4804) Headlines

No Headlines