Switch to:
Goldcorp Inc (NYSE:GG)
Interest Coverage
0.00 (As of Sep. 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. Goldcorp Inc's Operating Income for the three months ended in Sep. 2015 was $-9 Mil. Goldcorp Inc's Interest Expense for the three months ended in Sep. 2015 was $-34 Mil. Goldcorp Inc's interest coverage for the quarter that ended in Sep. 2015 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

GG' s Interest Coverage Range Over the Past 10 Years
Min: 10.16   Max: 9999.99
Current: 1.29

10.16
9999.99

During the past 13 years, the highest interest coverage of Goldcorp Inc was 9999.99. The lowest was 10.16. And the median was 99.51.

GG's Interest Coverage is ranked lower than
93% of the 638 Companies
in the Global Gold industry.

( Industry Median: 10000.00 vs. GG: 1.29 )

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.

Goldcorp 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, Goldcorp Inc's Interest Expense was $-26 Mil. Its Operating Income was $-2,527 Mil. And its Long-Term Debt was $3,442 Mil.

Goldcorp Inc did not have earnings to cover the interest expense.

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

Here, for the three months ended in Sep. 2015, Goldcorp Inc's Interest Expense was $-34 Mil. Its Operating Income was $-9 Mil. And its Long-Term Debt was $2,522 Mil.

Goldcorp Inc did not have earnings to cover the interest expense.

* 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.

Goldcorp Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
interest_coverage No Debt10.1613.7070.2810.50128.73248.67155.77At LossAt Loss

Goldcorp Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
interest_coverage At LossAt LossAt Loss12.5618.823.79At Loss1.522.47At Loss
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK