Switch to:
CA Inc (NAS:CA)
Interest Coverage
0.00 (As of Sep. 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. CA Inc's Operating Income for the three months ended in Sep. 2014 was $320 Mil. CA Inc's Interest Expense for the three months ended in Sep. 2014 was $0 Mil. CA Inc's interest coverage for the quarter that ended in Sep. 2014 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

CA' s 10-Year Interest Coverage Range
Min: 0.04   Max: 87
Current: 0

0.04
87

During the past 13 years, the highest interest coverage of CA Inc was 87.00. The lowest was 0.04. And the median was 13.07.

CA's Interest Coverageis ranked lower than
115% of the 1364 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2350.48 vs. CA: 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

CA 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

CA Inc had no debt.

CA Inc's Interest Coverage for the fiscal year that ended in Mar. 2014 is calculated as

Here, for the fiscal year that ended in Mar. 2014, CA Inc's Interest Expense was $0 Mil. Its Operating Income was $1,301 Mil. And its Long-Term Debt was $1,252 Mil.

CA Inc had no debt.

CA Inc's Interest Coverage for the quarter that ended in Sep. 2014 is calculated as

Here, for the three months ended in Sep. 2014, CA Inc's Interest Expense was $0 Mil. Its Operating Income was $320 Mil. And its Long-Term Debt was $1,253 Mil.

CA 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.

CA Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
interest_coverage 3.483.683.3518.708.6712.0418.4421.7030.27At Loss

CA Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
interest_coverage At LossAt Loss30.8322.1819.9126.54At LossAt LossAt LossAt Loss
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK