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Cenveo Inc (NYSE:CVO)
Interest Coverage
0.00 (As of Mar. 2015)

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. Cenveo Inc's Operating Income for the three months ended in Mar. 2015 was $18 Mil. Cenveo Inc's Interest Expense for the three months ended in Mar. 2015 was $0 Mil. Cenveo Inc's interest coverage for the quarter that ended in Mar. 2015 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

CVO' s 10-Year Interest Coverage Range
Min: 0.23   Max: 3.41
Current: 0.41

0.23
3.41

During the past 13 years, the highest interest coverage of Cenveo Inc was 3.41. The lowest was 0.23. And the median was 1.12.

CVO's Interest Coverageis ranked lower than
100% of the 494 Companies
in the Global Business Services industry.

( Industry Median: 43.25 vs. CVO: 0.41 )

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.

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

Here, for the fiscal year that ended in Dec. 2014, Cenveo Inc's Interest Expense was $-107 Mil. Its Operating Income was $44 Mil. And its Long-Term Debt was $1,230 Mil.

Interest Coverage=-1*Operating Income (A: Dec. 2014 )/Interest Expense (A: Dec. 2014 )
=-1*43.758/-106.798
=0.41

Cenveo Inc's Interest Coverage for the quarter that ended in Mar. 2015 is calculated as

Here, for the three months ended in Mar. 2015, Cenveo Inc's Interest Expense was $0 Mil. Its Operating Income was $18 Mil. And its Long-Term Debt was $1,246 Mil.

Cenveo 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.

Cenveo Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
interest_coverage At Loss1.041.50At LossAt LossAt Loss1.020.880.260.41

Cenveo Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
interest_coverage 1.08At Loss0.60At LossAt LossAt Loss0.50At LossAt LossAt Loss
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