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Marvell Technology Group Ltd (NAS:MRVL)
Interest Coverage
No Debt (As of Oct. 2016)

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. Marvell Technology Group Ltd's Operating Income for the six months ended in Oct. 2016 was $83 Mil. Marvell Technology Group Ltd's Interest Expense for the six months ended in Oct. 2016 was $0 Mil. Marvell Technology Group Ltd has no debt. The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

Marvell Technology Group Ltd has no debt.

MRVL' s Interest Coverage Range Over the Past 10 Years
Min: 0.1   Max: No Debt
Current: 187.83

MRVL's Interest Coverage is ranked higher than
59% of the 656 Companies
in the Global Semiconductors industry.

( Industry Median: 55.25 vs. MRVL: 187.83 )

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


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.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Marvell Technology Group Ltd's Interest Coverage for the fiscal year that ended in Jan. 2016 is calculated as

Here, for the fiscal year that ended in Jan. 2016, Marvell Technology Group Ltd's Interest Expense was $-1 Mil. Its Operating Income was $-817 Mil. And its Long-Term Debt was $0 Mil.

Marvell Technology Group Ltd did not have earnings to cover the interest expense.

Marvell Technology Group Ltd's Interest Coverage for the quarter that ended in Oct. 2016 is calculated as

Here, for the six months ended in Oct. 2016, Marvell Technology Group Ltd's Interest Expense was $0 Mil. Its Operating Income was $83 Mil. And its Long-Term Debt was $0 Mil.

Marvell Technology Group Ltd had no debt.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Marvell Technology Group Ltd Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
interest_coverage 0.10At Loss9.18192.916,258.28No Debt523.37149.62350.32At Loss

Marvell Technology Group Ltd Semi-Annual Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
interest_coverage 389.82366.79366.2360.24At LossAt Loss16.33At Loss407.28No Debt
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