Switch to:
Jewett-Cameron Trading Co Ltd (NAS:JCTCF)
Interest Coverage
10,000.00 (As of Aug. 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. Jewett-Cameron Trading Co Ltd's Operating Income for the three months ended in Aug. 2014 was $0.58 Mil. Jewett-Cameron Trading Co Ltd's Interest Expense for the three months ended in Aug. 2014 was $0.00 Mil. Jewett-Cameron Trading Co Ltd's interest coverage for the quarter that ended in Aug. 2014 was 10,000.00. The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

Jewett-Cameron Trading Co Ltd has no debt.

JCTCF' s 10-Year Interest Coverage Range
Min: 2.14   Max: 9999.99
Current: No Debt

2.14
9999.99

During the past 13 years, the highest interest coverage of Jewett-Cameron Trading Co Ltd was 9999.99. The lowest was 2.14. And the median was 14.93.

JCTCF's Interest Coverageis ranked higher than
91% of the 222 Companies
in the Global Lumber & Wood Production industry.

( Industry Median: 6.64 vs. JCTCF: No Debt )

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

Jewett-Cameron Trading Co Ltd 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

Jewett-Cameron Trading Co Ltd had no debt.

Jewett-Cameron Trading Co Ltd's Interest Coverage for the fiscal year that ended in Aug. 2014 is calculated as

Here, for the fiscal year that ended in Aug. 2014, Jewett-Cameron Trading Co Ltd's Interest Expense was $0.00 Mil. Its Operating Income was $3.09 Mil. And its Long-Term Debt was $0.00 Mil.

Jewett-Cameron Trading Co Ltd had no debt.

Jewett-Cameron Trading Co Ltd's Interest Coverage for the quarter that ended in Aug. 2014 is calculated as

Here, for the three months ended in Aug. 2014, Jewett-Cameron Trading Co Ltd's Interest Expense was $0.00 Mil. Its Operating Income was $0.58 Mil. And its Long-Term Debt was $0.00 Mil.

Jewett-Cameron Trading Co 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.

Jewett-Cameron Trading Co Ltd Annual Data

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
interest_coverage 4.4115.1117.1323.0261.84203.696.43No DebtNo DebtNo Debt

Jewett-Cameron Trading Co Ltd Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
interest_coverage 1,556.00No DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo Debt
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)
Free 7-day Trial
FEEDBACK