Apollo Education Group (Apollo Education Group) Interest Coverage : 5.90 (As of Nov. 2016)

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What is Apollo Education Group 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. Apollo Education Group's Operating Income for the three months ended in Nov. 2016 was $8 Mil. Apollo Education Group's Interest Expense for the three months ended in Nov. 2016 was $-1 Mil. Apollo Education Group's interest coverage for the quarter that ended in Nov. 2016 was 5.90. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Apollo Education Group's Interest Coverage or its related term are showing as below:

APOL's Interest Coverage is not ranked ^*
in the Education industry.
Industry Median: 15.48
* 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.

Apollo Education Group Interest Coverage Historical Data

The historical data trend for Apollo Education Group'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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Apollo Education Group Interest Coverage Chart

Apollo Education Group Annual Data

Trend

Aug07

Aug08

Aug09

Aug10

Aug11

Aug12

Aug13

Aug14

Aug15

Aug16

Interest Coverage

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57.59

52.14

44.85

17.43

Apollo Education Group Quarterly Data
	Feb12	May12	Aug12	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16
Interest Coverage	Get a 7-Day Free Trial															-	-	20.39	16.51	5.90

Competitive Comparison of Apollo Education Group's Interest Coverage

For the Education & Training Services subindustry, Apollo Education Group'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.

Apollo Education Group's Interest Coverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Apollo Education Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Apollo Education Group's Interest Coverage falls into.

Apollo Education Group 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.

Apollo Education Group's Interest Coverage for the fiscal year that ended in Aug. 2016 is calculated as

Here, for the fiscal year that ended in Aug. 2016, Apollo Education Group's Interest Expense was $-7 Mil. Its Operating Income was $-66 Mil. And its Long-Term Debt & Capital Lease Obligation was $35 Mil.

Apollo Education Group did not have earnings to cover the interest expense.

Apollo Education Group's Interest Coverage for the quarter that ended in Nov. 2016 is calculated as

Here, for the three months ended in Nov. 2016, Apollo Education Group's Interest Expense was $-1 Mil. Its Operating Income was $8 Mil. And its Long-Term Debt & Capital Lease Obligation was $33 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Nov. 2016 )	/	Interest Expense (Q: Nov. 2016 )
	=	-1	*	8.404	/	-1.425
	=	5.90

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

Apollo Education Group (NAS:APOL) 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 .

Apollo Education Group Interest Coverage Related Terms

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

Apollo Education Group (Apollo Education Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Apollo Education Group Inc (NAS:APOL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.apollo.edu

Apollo Education Group Inc was incorporated in Arizona in 1981. It offers educational programs and services, online and on-campus at the undergraduate, master's and doctoral levels. Its learning platforms include the following The University of Phoenix, Inc., Apollo Global, Inc. which also includes BPP Holdings Limited, Universidad Latinoamericana, Universidad de Artes, Ciencias y ComunicaciÃ³n, and Indian Education Services Private Ltd., Western International University, Inc., Institute for Professional Development, The College for Financial Planning Institutes Corporation, Carnegie Learning, Inc., and Apollo Lightspeed. Its institutions offer Accredited Degree Programs, Professional Examinations Training and Professional Development, and Employers. The Company's international operations include full-time and part-time courses, delivered on-campus or online, for professional examination preparation, professional development training and various degree/certificate/diploma programs. It competes mainly with traditional public and private two-year and four-year degree-granting regionally accredited colleges and universities, other proprietary degree-granting regionally accredited schools and alternatives to higher education. Its domestic postsecondary institutions are subject to extensive federal and state regulations.

Executives

Sean Martin	officer: SVP, General Counsel	ONE BAXTER PARKWAY, DEERFIELD IL 60015
Ann Kirschner	director	650 FROM ROAD, SUITE 375, PARAMUS NJ 07652
Richard H Dozer	director	VIAD CORP, 7000 E. 1ST AVENUE, SCOTTSDALE AZ 85251
Robert S Murley	director	4025 S. RIVERPOINT PARKWAY, M/S CF-K815, PHOENIX AZ 85040
James Mitchell Bowling	officer: SVP, COO	4025 S RIVERPOINT PKWY MS CF-K808 PHOENIX AZ 85040
Terri C Bishop	director, officer: Vice Chairman	4025 S RIVERPOINT PKWY, PHOENIX AZ 85040
Peter V Sperling	director, officer: Chairman of the Board	4615 E ELWOOD, PHOENIX AZ 85040
Darby E Shupp	director	4025 S RIVERPOINT PKWY, M/S CF-X01, PHOENIX AZ 85040
Gregory James Iverson	officer: SVP, CFO, CAO & Treasurer	4025 S. RIVERPOINT PARKWAY, CF-K809, PHOENIX AZ 85040
Herberger Roy A Jr	director	400 E VAN BUREN ST, PO BOX 52132, PHOENIX AZ 85072-2132
Matthew Jr Carter	director	550 W ADAMS, STE 900, CHICAGO IL 60661
Manuel Felix Rivelo	director	2312 MAGNOLIA BLVD. WEST, SEATTLE WA 98199
Brian L Swartz	officer: SVP & CFO	4025 S RIVERPOINT PKWY MAIL-STOP CF-KX04 PHOENIX AZ 85040
P Robert Moya	officer: EVP, Special Projects	4025 S RIVERPOINT PKWY, MS CF-KX01, PHOENIX AZ 85040
Di Piazza Samuel A Jr.	director	100 BROOKWOOD PLACE, BIRMINGHAM AL 35209