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Cryo-Cell International Inc (OTCPK:CCEL)
Interest Coverage
At Loss (As of Aug. 2016)

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. Cryo-Cell International Inc's Operating Income for the three months ended in Aug. 2016 was $-1.06 Mil. Cryo-Cell International Inc's Interest Expense for the three months ended in Aug. 2016 was $-0.20 Mil. Cryo-Cell International Inc did not have earnings to cover the interest expense. The higher the ratio, the stronger the company’s financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Cryo-Cell International Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

CCEL' s Interest Coverage Range Over the Past 10 Years
Min: 1.22   Max: 2.6
Current: 0.39

1.22
2.6
CCEL's Interest Coverage is ranked lower than
97% of the 239 Companies
in the Global Medical Care industry.

( Industry Median: 7.01 vs. CCEL: 0.39 )

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


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.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Cryo-Cell International Inc's Interest Coverage for the fiscal year that ended in Nov. 2015 is calculated as

Here, for the fiscal year that ended in Nov. 2015, Cryo-Cell International Inc's Interest Expense was $-1.30 Mil. Its Operating Income was $2.93 Mil. And its Long-Term Debt was $0.87 Mil.

Interest Coverage=-1*Operating Income (A: Nov. 2015 )/Interest Expense (A: Nov. 2015 )
=-1*2.933/-1.304
=2.25

Cryo-Cell International Inc's Interest Coverage for the quarter that ended in Aug. 2016 is calculated as

Here, for the three months ended in Aug. 2016, Cryo-Cell International Inc's Interest Expense was $-0.20 Mil. Its Operating Income was $-1.06 Mil. And its Long-Term Debt was $8.65 Mil.

Cryo-Cell International 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 local exchange's 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 local exchange's currency.

Cryo-Cell International Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
interest_coverage At LossAt LossAt Loss2.122.60At LossAt Loss1.221.722.25

Cryo-Cell International Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
interest_coverage 2.221.390.592.081.633.571.580.602.57At Loss
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