Capella Education Co (Capella Education Co) Interest Coverage : No Debt ⁽¹⁾ (As of Jun. 2018)

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What is Capella Education Co Interest Coverage?

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 by its Interest Expense. Capella Education Co's Operating Income for the three months ended in Jun. 2018 was $16.0 Mil. Capella Education Co's Interest Expense for the three months ended in Jun. 2018 was $0.0 Mil. Capella Education Co has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

The historical rank and industry rank for Capella Education Co's Interest Coverage or its related term are showing as below:

CPLA's Interest Coverage is not ranked ^*
in the Education industry.
Industry Median: 15.495
* Ranked among companies with meaningful Interest Coverage only.

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

Capella Education Co Interest Coverage Historical Data

The historical data trend for Capella Education Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Capella Education Co Interest Coverage Chart

Capella Education Co Annual Data

Trend

Dec08

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Dec10

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Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Interest Coverage

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No Debt

Capella Education Co Quarterly Data
	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18
Interest Coverage	Get a 7-Day Free Trial															No Debt	No Debt	No Debt	No Debt	No Debt

Competitive Comparison of Capella Education Co's Interest Coverage

For the Education & Training Services subindustry, Capella Education Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Capella Education Co's Interest Coverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Capella Education Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Capella Education Co's Interest Coverage falls into.

Capella Education Co Interest Coverage Calculation

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 & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

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

Capella Education Co's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, Capella Education Co's Interest Expense was $0.0 Mil. Its Operating Income was $65.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Capella Education Co had no debt ⁽¹⁾.

Capella Education Co's Interest Coverage for the quarter that ended in Jun. 2018 is calculated as

Here, for the three months ended in Jun. 2018, Capella Education Co's Interest Expense was $0.0 Mil. Its Operating Income was $16.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Capella Education Co had no debt ⁽¹⁾.

The higher the ratio, the stronger the company's Financial Strength is.

Capella Education Co (NAS:CPLA) Interest Coverage 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 .

Capella Education Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Capella Education Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Capella Education Co (Capella Education Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Capella Education Co (NAS:CPLA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.capellaeducation.com

Capella Education Co is an American for-profit education company that operates online universities and various educational programs. The company's flagship offering, Capella University, operates various bachelor's, master's, and doctoral degree programs with close to 35,000 students enrolled. Master's degree programs represent approximately 50% of the university's degree programs in areas such as technology, business, healthcare, and psychology. Capella University focuses on mid-career professionals with an average student age of 39 years. Enrollment and fees from Capella University are the largest source of revenue, followed by other educational programs. A large portion of the company's revenue is made possible by federal financial aid programs such as Pell Fund Grants.

Executives

Jody Miller	director	225 SOUTH SIXTH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Peter M Ramstad	officer: SVP & Chief HR Officer	225 SOUTH 6TH ST, 9TH FLOOR, MINNEAPOLIS MN 55402
Andrew E Watt	officer: Senior Vice President	225 SOUTH SIXTH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Michael Linton	director	C/O LOANDEPOT, INC. ATTN GENERAL COUNSEL, 26642 TOWNE CENTRE DRIVE, FOOTHILL RANCH CA 92610
H James Dallas	director	127 PUBLIC SQUARE, CLEVELAND OH 44114
J Kevin Gilligan	director, officer: Chairman & CEO	P O BOX 1441, MINNEAPOLIS MN 55440-1441
Rita D Brogley	director	225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Steve Polacek	officer: SVP & CFO	4106 SUNNYSIDE ROAD, EDINA MN 55424
Matthew Wagner Ferguson	director	C/O ECHO GLOBAL LOGISTICS, INC. 600 W CHICAGO AVE, SUITE 725 CHICAGO IL 60654
Stephen G Shank	director	C/O CAPELLA EDUCATION CO, 222 S 9TH ST, MINNEAPOLIS MN 55402
Andrew M Slavitt	director	225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Mark N Greene	director	901 MARQUETTE AVENUE, SUITE 3200, MINNEAPOLIS MN 55402
Sandra E Taylor	director	265 TURNER DRIVE, DURANGO CO 81303
Amy L Ronneberg	officer: Vice President & Controller	225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Lois M Martin	officer: Sr VP & CFO	PO BOX 1101, ADC TELCOMMUNICATIONS INC, MINNEAPOLIS MN 55440-1104