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CoSine Communications (CoSine Communications) Interest Coverage : No Debt (1) (As of Dec. 2009)


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What is CoSine Communications Interest Coverage?

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 by its Interest Expense. CoSine Communications's Operating Income for the six months ended in Dec. 2009 was $-0.74 Mil. CoSine Communications's Interest Expense for the six months ended in Dec. 2009 was $0.00 Mil. CoSine Communications has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

The historical rank and industry rank for CoSine Communications's Interest Coverage or its related term are showing as below:


COSN's Interest Coverage is not ranked *
in the Business Services industry.
Industry Median: 13.27
* Ranked among companies with meaningful Interest Coverage only.

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


CoSine Communications Interest Coverage Historical Data

The historical data trend for CoSine Communications's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

CoSine Communications Interest Coverage Chart

CoSine Communications Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only No Debt - No Debt No Debt No Debt

CoSine Communications Semi-Annual Data
Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only No Debt - No Debt No Debt No Debt

Competitive Comparison of CoSine Communications's Interest Coverage

For the Specialty Business Services subindustry, CoSine Communications's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CoSine Communications's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, CoSine Communications's Interest Coverage distribution charts can be found below:

* The bar in red indicates where CoSine Communications's Interest Coverage falls into.



CoSine Communications Interest Coverage Calculation

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 & Capital Lease Obligation is 0, then

The company had no debt (1).


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

CoSine Communications's Interest Coverage for the fiscal year that ended in Dec. 2009 is calculated as

Here, for the fiscal year that ended in Dec. 2009, CoSine Communications's Interest Expense was $0.00 Mil. Its Operating Income was $-0.74 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

CoSine Communications had no debt (1).

CoSine Communications's Interest Coverage for the quarter that ended in Dec. 2009 is calculated as

Here, for the six months ended in Dec. 2009, CoSine Communications's Interest Expense was $0.00 Mil. Its Operating Income was $-0.74 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

CoSine Communications had no debt (1).

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


CoSine Communications  (OTCPK:COSN) Interest Coverage 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 .


CoSine Communications Interest Coverage Related Terms

Thank you for viewing the detailed overview of CoSine Communications's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


CoSine Communications (CoSine Communications) Business Description

Traded in Other Exchanges
N/A
Address
Cosine Communications develops and markets switches and software used telecom service providers to manage their data communication networks. Carriers use CoSine's switches to incorporate virtual private networks, firewalls, virtual routing, secure broadband connections, and similar services into their service offerings. CoSine's software helps to manage the functions of the equipment.
Executives
Jack L Howard director 182 FARMERS LANE, STE 101, SANTA ROSA CA 95405
Charles J Abbe director 2445 WESTSIDE ROAD HEALDSBURG CA 95448
Steel Partners Holdings L.p. 10 percent owner 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Warren G Lichtenstein 10 percent owner C/O STEEL PARTNERS II L P, 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Llc 10 percent owner 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Ii Lp 10 percent owner 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Llc 10 percent owner 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Handy & Harman Ltd. 10 percent owner 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Whx Cs Corp. 10 percent owner 555 THEODORE FREMD AVENUE, NEW YORK NY 10580
Emh Howard Llc other: See Explanation of Responses 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Ii Master Fund L.p. 10 percent owner C/O MORGAN STANLEY FND SVCS LTD (CAYMAN), CRICKET SQ 2ND FL HUTCHINS DR PO BX 2681, GRAND CAYMAN E9 KY1-1111
George Weaver Haywood other: 10% Owner prior to 10/26/05 CARE OF CRONIN AND VRIS, LLP, 380 MADISON AVENUE, NEW YORK NY 10017
R David Spreng director 3800 FIRST BANK PL, P O BOX 357, MINNEAPOLIS MN 55402

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