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Cascade Corporation (NYSE:CASC)
Interest Coverage
0.00 (As of Jan. 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. Cascade Corporation's Operating Income for the three months ended in Jan. 2013 was $8.4 Mil. Cascade Corporation's Interest Expense for the three months ended in Jan. 2013 was $0.0 Mil. Cascade Corporation's interest coverage for the quarter that ended in Jan. 2013 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

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

CASC's Interest Coverageis ranked lower than
108% of the 106 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 11.38 vs. CASC: 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

Cascade Corporation 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

Cascade Corporation had no debt.

Cascade Corporation's Interest Coverage for the fiscal year that ended in Jan. 2013 is calculated as

Here, for the fiscal year that ended in Jan. 2013, Cascade Corporation's Interest Expense was $0.0 Mil. Its Operating Income was $67.5 Mil. And its Long-Term Debt was $3.5 Mil.

Cascade Corporation had no debt.

Cascade Corporation's Interest Coverage for the quarter that ended in Jan. 2013 is calculated as

Here, for the three months ended in Jan. 2013, Cascade Corporation's Interest Expense was $0.0 Mil. Its Operating Income was $8.4 Mil. And its Long-Term Debt was $3.5 Mil.

Cascade Corporation 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.

Cascade Corporation Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
interest_coverage 7.0113.3823.3129.8023.352.81At Loss21.25At LossAt Loss

Cascade Corporation Quarterly Data

Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12Jan13
interest_coverage 30.7920.77At Loss101.83At LossAt LossAt LossAt LossAt LossAt Loss
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