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Array BioPharma, Inc. (NAS:ARRY)
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. Array BioPharma, Inc.'s Operating Income for the three months ended in Dec. 2013 was $-14.00 Mil. Array BioPharma, Inc.'s Interest Expense for the three months ended in Dec. 2013 was $-2.43 Mil. Array BioPharma, 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.

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

During the past 13 years, the highest interest coverage of Array BioPharma, Inc. was 9999.99. The lowest was 9999.99. And the median was 10000.00.

ARRY's Interest Coverageis ranked lower than
135% of the 425 Companies
in the Global Biotechnology industry.

( Industry Median: 10000.00 vs. ARRY: 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

Array BioPharma, 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

Array BioPharma, Inc. had no debt.

Array BioPharma, Inc.'s Interest Coverage for the fiscal year that ended in Jun. 2013 is calculated as

Here, for the fiscal year that ended in Jun. 2013, Array BioPharma, Inc.'s Interest Expense was $-11.26 Mil. Its Operating Income was $-39.54 Mil. And its Long-Term Debt was $99.02 Mil.

Array BioPharma, Inc. did not have earnings to cover the interest expense.

Array BioPharma, Inc.'s Interest Coverage for the quarter that ended in Dec. 2013 is calculated as

Here, for the three months ended in Dec. 2013, Array BioPharma, Inc.'s Interest Expense was $-2.43 Mil. Its Operating Income was $-14.00 Mil. And its Long-Term Debt was $101.43 Mil.

Array BioPharma, Inc. did not have earnings to cover the interest expense.

* 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.

Array BioPharma, Inc. Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
interest_coverage No DebtAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt Loss

Array BioPharma, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
interest_coverage At Loss0.01At LossAt LossAt LossAt LossAt LossAt LossAt LossAt Loss
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