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Acadia Healthcare Company, Inc. (NAS:ACHC)
Interest Coverage
0.00 (As of Dec. 2013)

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. Acadia Healthcare Company, Inc.'s Operating Income for the three months ended in Dec. 2013 was $-7.7 Mil. Acadia Healthcare Company, Inc.'s Interest Expense for the three months ended in Dec. 2013 was $0.0 Mil. Acadia Healthcare Company, Inc.'s interest coverage for the quarter that ended in Dec. 2013 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

ACHC' s 10-Year Interest Coverage Range
Min: 1.1   Max: 9999.99
Current: 0

1.1
9999.99

During the past 4 years, the highest interest coverage of Acadia Healthcare Company, Inc. was 9999.99. The lowest was 1.10. And the median was 5000.55.

ACHC's Interest Coverageis ranked lower than
99% of the 160 Companies
in the Global Medical Care industry.

( Industry Median: 6.09 vs. ACHC: 0.00 )

Definition

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

Acadia Healthcare Company, Inc. did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt is 0, or Interest Expense is positive, then

Acadia Healthcare Company, Inc. had no debt.

Acadia Healthcare Company, Inc.'s Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, Acadia Healthcare Company, Inc.'s Interest Expense was $0.0 Mil. Its Operating Income was $69.2 Mil. And its Long-Term Debt was $601.9 Mil.

Acadia Healthcare Company, Inc. had no debt.

Acadia Healthcare Company, Inc.'s Interest Coverage for the quarter that ended in Dec. 2013 is calculated as

Here, for the three months ended in Dec. 2013, Acadia Healthcare Company, Inc.'s Interest Expense was $0.0 Mil. Its Operating Income was $-7.7 Mil. And its Long-Term Debt was $601.9 Mil.

Acadia Healthcare Company, Inc. had no debt.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The higher the ratio, the stronger the company’s financial strength is.


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.


Related Terms

Operating Income, Interest Expense, Financial Strength


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Acadia Healthcare Company, Inc. Annual Data

Dec10Dec11Dec12Dec13
interest_coverage At LossAt LossAt LossAt LossAt LossAt LossNo DebtAt Loss1.10At Loss

Acadia Healthcare Company, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
interest_coverage At LossAt LossAt Loss1.342.39At Loss0.772.15At LossAt Loss
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