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Molex, Inc. (NAS:MOLX)
Interest Coverage
0.00 (As of Sep. 2013)

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. Molex, Inc.'s Operating Income for the three months ended in Sep. 2013 was $123 Mil. Molex, Inc.'s Interest Expense for the three months ended in Sep. 2013 was $0 Mil. Molex, Inc.'s interest coverage for the quarter that ended in Sep. 2013 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

MOLX' s 10-Year Interest Coverage Range
Min: 0   Max: 0
Current: 0

MOLX's Interest Coverageis ranked lower than
131% of the 1629 Companies
in the Global Electronic Components industry.

( Industry Median: 126.19 vs. MOLX: 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

Molex, Inc. 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

Molex, Inc. had no debt.

Molex, Inc.'s Interest Coverage for the fiscal year that ended in Jun. 2013 is calculated as

Here, for the fiscal year that ended in Jun. 2013, Molex, Inc.'s Interest Expense was $0 Mil. Its Operating Income was $352 Mil. And its Long-Term Debt was $310 Mil.

Molex, Inc. had no debt.

Molex, Inc.'s Interest Coverage for the quarter that ended in Sep. 2013 is calculated as

Here, for the three months ended in Sep. 2013, Molex, Inc.'s Interest Expense was $0 Mil. Its Operating Income was $123 Mil. And its Long-Term Debt was $315 Mil.

Molex, Inc. 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.

Molex, Inc. Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
interest_coverage At LossAt LossAt LossAt LossAt LossAt LossAt Loss75.3774.53At Loss

Molex, Inc. Quarterly Data

Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13
interest_coverage At LossAt Loss46.3973.27140.19126.8394.01At LossAt LossAt Loss
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