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Ascena Retail Group Inc (NAS:ASNA)
Interest Coverage
0.00 (As of Oct. 2015)

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. Ascena Retail Group Inc's Operating Income for the three months ended in Oct. 2015 was $-12 Mil. Ascena Retail Group Inc's Interest Expense for the three months ended in Oct. 2015 was $-21 Mil. Ascena Retail Group Inc's interest coverage for the quarter that ended in Oct. 2015 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

During the past 13 years, the highest interest coverage of Ascena Retail Group Inc was 115.92. The lowest was 10.55. And the median was 28.88.


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

The company did not have earnings to cover the interest expense.

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

The company had no debt.

Ascena Retail Group Inc's Interest Coverage for the fiscal year that ended in Jul. 2015 is calculated as

Here, for the fiscal year that ended in Jul. 2015, Ascena Retail Group Inc's Interest Expense was $-6 Mil. Its Operating Income was $-235 Mil. And its Long-Term Debt was $357 Mil.

Ascena Retail Group Inc did not have earnings to cover the interest expense.

Ascena Retail Group Inc's Interest Coverage for the quarter that ended in Oct. 2015 is calculated as

Here, for the three months ended in Oct. 2015, Ascena Retail Group Inc's Interest Expense was $-21 Mil. Its Operating Income was $-12 Mil. And its Long-Term Debt was $2,211 Mil.

Ascena Retail Group 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.

Ascena Retail Group Inc Annual Data

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
interest_coverage 24.6031.7423.3410.5532.95115.9268.0519.2228.88At Loss

Ascena Retail Group Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
interest_coverage 44.8557.0723.3322.3817.3138.8810.3822.93At LossAt Loss
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