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Darden Restaurants Inc (NYSE:DRI)
Interest Coverage
0.00 (As of May. 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. Darden Restaurants Inc's Operating Income for the three months ended in May. 2014 was $84 Mil. Darden Restaurants Inc's Interest Expense for the three months ended in May. 2014 was $0 Mil. Darden Restaurants Inc's interest coverage for the quarter that ended in May. 2014 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

DRI' s 10-Year Interest Coverage Range
Min: 4.38   Max: 14.24
Current: 0

4.38
14.24

During the past 13 years, the highest interest coverage of Darden Restaurants Inc was 14.24. The lowest was 4.38. And the median was 8.60.

DRI's Interest Coverageis ranked lower than
98% of the 245 Companies
in the Global Restaurants industry.

( Industry Median: 18.31 vs. DRI: 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

Darden Restaurants 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

Darden Restaurants Inc had no debt.

Darden Restaurants Inc's Interest Coverage for the fiscal year that ended in May. 2014 is calculated as

Here, for the fiscal year that ended in May. 2014, Darden Restaurants Inc's Interest Expense was $0 Mil. Its Operating Income was $327 Mil. And its Long-Term Debt was $2,533 Mil.

Darden Restaurants Inc had no debt.

Darden Restaurants Inc's Interest Coverage for the quarter that ended in May. 2014 is calculated as

Here, for the three months ended in May. 2014, Darden Restaurants Inc's Interest Expense was $0 Mil. Its Operating Income was $84 Mil. And its Long-Term Debt was $2,533 Mil.

Darden Restaurants 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.

Darden Restaurants Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
interest_coverage 10.5012.5714.246.915.726.767.847.22At LossAt Loss

Darden Restaurants Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
interest_coverage 8.416.242.31At LossAt LossAt LossAt LossAt LossAt LossAt Loss
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