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. Federal-Mogul Holdings's
Operating Income
for the
three
months ended in Sep. 2016 was $52 Mil. Federal-Mogul Holdings's Interest Expense for the
three
months ended in Sep. 2016 was $-2 Mil.
Federal-Mogul Holdings's interest coverage for the quarter that ended in Sep. 2016 was 26.00.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Federal-Mogul Holdings's Interest Coverage or its related term are showing as below:
FDML's Interest Coverage is not ranked *
in the Vehicles & Parts industry.
Industry Median: 7.72 * Ranked among companies with meaningful Interest Coverage only.
Federal-Mogul Holdings Interest Coverage Historical Data
The historical data trend for Federal-Mogul Holdings'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.
Competitive Comparison of Federal-Mogul Holdings's Interest Coverage
For the Auto Parts subindustry, Federal-Mogul Holdings'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.
Federal-Mogul Holdings's Interest Coverage Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Federal-Mogul Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Federal-Mogul Holdings'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:
* 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.
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 .
Federal-Mogul Holdings Interest Coverage Related Terms
Thank you for viewing the detailed overview of Federal-Mogul Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Federal-Mogul Holdings (Federal-Mogul Holdings) Business Description
Federal-Mogul Holdings Corp is supplier of technology and innovation in vehicle and industrial products for fuel economy, emissions reduction and safety systems. It supplies components, accessories and systems to the automotive, small engine, heavy-duty, marine, railroad, agricultural, off-road, aerospace and energy, industrial and transportation markets, including customers in both the original equipment manufacturers and services market and the replacement market. The Company operates in two segments, Powertrain and Motorparts. The Powertrain segment focuses on original equipment products for automotive, heavy duty and industrial applications. The Motorparts segment sells and distributes a broad portfolio of products in the aftermarket including more than 20 brands. It also serves original equipment manufacturers with products including braking, wipers, and a limited range of chassis. It has operations in markets including Canada, France, Germany, Italy, Japan, Spain, Sweden, the United Kingdom and the United States, and emerging markets including Argentina, Brazil, China, Czech Republic, Hungary, India, Korea, Mexico, Poland, Russia, South Africa, Thailand, Turkey and Venezuela. The Company's operations, consistent with those of the manufacturing sector in general, are subject to numerous existing and proposed laws and governmental regulations designed to protect the environment, particularly regarding plant wastes and emissions and solid waste disposal.
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