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Flextronics International Ltd (NAS:FLEX)
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. Flextronics International Ltd's Operating Income for the three months ended in Mar. 2015 was $155 Mil. Flextronics International Ltd's Interest Expense for the three months ended in Mar. 2015 was $0 Mil. Flextronics International Ltd'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.

FLEX' s 10-Year Interest Coverage Range
Min: 1.52   Max: 8.72
Current: 0

1.52
8.72

During the past 13 years, the highest interest coverage of Flextronics International Ltd was 8.72. The lowest was 1.52. And the median was 3.12.

FLEX's Interest Coverageis ranked lower than
192% of the 1268 Companies
in the Global Contract Manufacturers industry.

( Industry Median: 518.62 vs. FLEX: 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

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.

Flextronics International Ltd's Interest Coverage for the fiscal year that ended in Mar. 2015 is calculated as

Here, for the fiscal year that ended in Mar. 2015, Flextronics International Ltd's Interest Expense was $0 Mil. Its Operating Income was $669 Mil. And its Long-Term Debt was $2,038 Mil.

Flextronics International Ltd had no debt.

Flextronics International Ltd's Interest Coverage for the quarter that ended in Mar. 2015 is calculated as

Here, for the three months ended in Mar. 2015, Flextronics International Ltd's Interest Expense was $0 Mil. Its Operating Income was $155 Mil. And its Long-Term Debt was $2,038 Mil.

Flextronics International Ltd 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.

Flextronics International Ltd Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
interest_coverage 2.333.696.85At LossAt Loss8.72At LossAt LossAt LossAt Loss

Flextronics International Ltd Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
interest_coverage 0.61At LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt Loss
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