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Alderon Iron Ore Corp (AMEX:AXX)
Interest Coverage
0.00 (As of Mar. 2014)

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. Alderon Iron Ore Corp's Operating Income for the three months ended in Mar. 2014 was $-2.11 Mil. Alderon Iron Ore Corp's Interest Expense for the three months ended in Mar. 2014 was $0.00 Mil. Alderon Iron Ore Corp's interest coverage for the quarter that ended in Mar. 2014 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

Ben Graham prefers companies interest coverage is at least 5. Alderon Iron Ore Corp has enough cash to cover all of its debt. Its financial situation is stable.

AXX' s 10-Year Interest Coverage Range
Min: 9999.99   Max: 9999.99
Current: No Debt

During the past 13 years, the highest interest coverage of Alderon Iron Ore Corp was 9999.99. The lowest was 9999.99. And the median was 10000.00.

AXX's Interest Coverageis ranked higher than
87% of the 1341 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: 10000.00 vs. AXX: No Debt )

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

Alderon Iron Ore Corp 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

Alderon Iron Ore Corp had no debt.

Alderon Iron Ore Corp'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, Alderon Iron Ore Corp's Interest Expense was $0.00 Mil. Its Operating Income was $-13.92 Mil. And its Long-Term Debt was $0.00 Mil.

Alderon Iron Ore Corp had no debt.

Alderon Iron Ore Corp's Interest Coverage for the quarter that ended in Mar. 2014 is calculated as

Here, for the three months ended in Mar. 2014, Alderon Iron Ore Corp's Interest Expense was $0.00 Mil. Its Operating Income was $-2.11 Mil. And its Long-Term Debt was $15.52 Mil.

Alderon Iron Ore Corp 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.

Alderon Iron Ore Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
interest_coverage At LossAt LossAt LossAt LossAt LossAt LossNo DebtNo DebtAt LossNo Debt

Alderon Iron Ore Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
interest_coverage No DebtNo DebtNo DebtAt LossNo DebtNo DebtNo DebtNo DebtNo DebtAt Loss
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