Electro Rent (Electro Rent) Interest Coverage : 7.75 (As of Feb. 2016)

Electro Rent Interest Coverage Chart

Electro Rent Annual Data
	Trend	May06	May07	May08	May09	May10	May11	May12	May13	May14	May15
Interest Coverage		Get a 7-Day Free Trial					No Debt	No Debt	No Debt	No Debt	No Debt

Electro Rent Quarterly Data
	May11	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16
Interest Coverage	Get a 7-Day Free Trial															No Debt	No Debt	17.33	No Debt	7.75

Competitive Comparison of Electro Rent's Interest Coverage

For the Rental & Leasing Services subindustry, Electro Rent'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.

Electro Rent's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Electro Rent's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Electro Rent's Interest Coverage falls into.

Electro Rent 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Electro Rent's Interest Coverage for the fiscal year that ended in May. 2015 is calculated as

Here, for the fiscal year that ended in May. 2015, Electro Rent's Interest Expense was $0.0 Mil. Its Operating Income was $22.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Electro Rent's Interest Coverage for the quarter that ended in Feb. 2016 is calculated as

Here, for the three months ended in Feb. 2016, Electro Rent's Interest Expense was $-0.2 Mil. Its Operating Income was $1.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

* 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.

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

Electro Rent  (NAS:ELRC) 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 .

Electro Rent Interest Coverage Related Terms

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Electro Rent (Electro Rent) Business Description