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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. EMC's Operating Income for the three months ended in Jun. 2016 was $882 Mil. EMC's Interest Expense for the three months ended in Jun. 2016 was $-42 Mil. EMC's interest coverage for the quarter that ended in Jun. 2016 was 21.00. The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for EMC's Interest Coverage or its related term are showing as below:
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
The historical data trend for EMC'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.
EMC Annual Data | |||||||||||||||||||||
Trend | Dec06 | Dec07 | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | |||||||||||
Interest Coverage | Get a 7-Day Free Trial | 20.25 | 50.18 | 26.60 | 27.46 | 17.32 |
EMC Quarterly Data | ||||||||||||||||||||
Sep11 | Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 | Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | |
Interest Coverage | Get a 7-Day Free Trial | 16.59 | 16.83 | 25.42 | 10.00 | 21.00 |
For the Computer Hardware subindustry, EMC'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.
For the Hardware industry and Technology sector, EMC's Interest Coverage distribution charts can be found below:
* The bar in red indicates where EMC's Interest Coverage falls into.
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.
EMC's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as
Here, for the fiscal year that ended in Dec. 2015, EMC's Interest Expense was $-164 Mil. Its Operating Income was $2,841 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,475 Mil.
Interest Coverage | = | -1 | * | Operating Income (A: Dec. 2015 ) | / | Interest Expense (A: Dec. 2015 ) |
= | -1 | * | 2841 | / | -164 | |
= | 17.32 |
EMC's Interest Coverage for the quarter that ended in Jun. 2016 is calculated as
Here, for the three months ended in Jun. 2016, EMC's Interest Expense was $-42 Mil. Its Operating Income was $882 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,479 Mil.
Interest Coverage | = | -1 | * | Operating Income (Q: Jun. 2016 ) | / | Interest Expense (Q: Jun. 2016 ) |
= | -1 | * | 882 | / | -42 | |
= | 21.00 |
* 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.
EMC (NYSE:EMC) 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 .
Thank you for viewing the detailed overview of EMC's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Laura Sen | director | ONE MERCER ROAD, P.O. BOX 9601, NATICK MA 01760-9601 |
John R Egan | director | 176 SOUTH ST., HOPKINTON MA 01748 |
Donald J Carty | director | C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244 |
Judith A Miscik | director | 300 RENAISSANCE CENTER, M/C: 482-C24-A68, DETROIT MI 48265 |
William D Green | director | C/O ACCENTURE, 161 N CLARK STREET, CHICAGO IL 60601 |
William F Scannell | officer: President,Global Sales/Cust Op | EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748 |
Randolph L Cowen | director | 176 SOUTH STREET HOPKINTON MA 01748 |
Howard D Elias | officer: President & COO, Glob Ent Srvs | C/O EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748 |
Paul T Dacier | officer: EVP & General Counsel | EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748 |
Erin Mcsweeney | officer: EVP, Human Resources | EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748 |
Teuber William J Jr | officer: Vice Chairman | EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748 |
James S Distasio | director | C/O EVERSOURCE ENERGY, 300 CADWELL DRIVE, BOSTON MA 01104 |
Paul Sagan | director | AKAMAI TECHNOLOGIES INC, 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142 |
Jeremy Burton | officer: President, Prod & Marketing | C/O SNOWFLAKE INC., 106 EAST BABCOCK STREET SUITE 3A, BOZEMAN MT 59715 |
David I Goulden | officer: CEO, EMCII | 176 SOUTH STREET, HOPKINTON MA 01748 |
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