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. Morgans Hotel Group Co's
Operating Income
for the
three
months ended in Sep. 2016 was $0.5 Mil. Morgans Hotel Group Co's Interest Expense for the
three
months ended in Sep. 2016 was $-10.5 Mil.
Morgans Hotel Group Co's interest coverage for the quarter that ended in Sep. 2016 was 0.05.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Morgans Hotel Group Co's Interest Coverage or its related term are showing as below:
MHGC's Interest Coverage is not ranked *
in the Travel & Leisure industry.
Industry Median: 5.15 * Ranked among companies with meaningful Interest Coverage only.
Morgans Hotel Group Co Interest Coverage Historical Data
The historical data trend for Morgans Hotel Group 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.
Competitive Comparison of Morgans Hotel Group Co's Interest Coverage
For the Lodging subindustry, Morgans Hotel Group 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.
Morgans Hotel Group Co's Interest Coverage Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Morgans Hotel Group Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Morgans Hotel Group Co's Interest Coverage falls into.
Morgans Hotel Group 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:
* 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.
Morgans Hotel Group Co (NAS:MHGC) 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 .
Morgans Hotel Group Co Interest Coverage Related Terms
Thank you for viewing the detailed overview of Morgans Hotel Group Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Morgans Hotel Group Co (Morgans Hotel Group Co) Business Description
Morgans Hotel Group Co was incorporated in the state of Delaware on October 19, 2005. The company is a fully-integrated lifestyle hospitality company that operates, owns, acquires, develops and redevelops boutique hotels in gateway cities and select resort markets in the United States, Europe and other international locations. The Company's portfolio of Morgans Hotel Group branded hotel properties and food and beverage operations and entities consisted of: three owned hotels, consisting of Hudson in New York, Delano South Beach in Miami Beach, and Clift in San Francisco comprising approximately 1,450 rooms, and the food and beverage operations located at these hotels; owned food and beverage operations, consisting of leasehold interests in the food and beverage operations located at Sanderson, in London, and Mandalay Bay in Las Vegas; two joint venture hotels, consisting of Mondrian South Beach in Miami Beach and Mondrian SoHo in New York, comprising approximately 500 rooms and the Company's investment in the food and beverage venture at Mondrian South Beach in Miami Beach; seven managed hotels, consisting of Royalton and Morgans in New York, Shore Club in Miami Beach, Mondrian in Los Angeles, Sanderson, St Martins Lane, and Mondrian London in London, comprising approximately 1,550 rooms; the Company's licensed hotel, Delano Las Vegas, comprising 1,117 rooms and franchised hotel, 10 Karakoy, in Istanbul, comprising 71 rooms; 90% controlling interest in TLG Acquisition LLC which operates numerous food and beverage and nightclub venues primarily in Las Vegas pursuant to management agreements with MGM Resorts International; and the Company's investments in certain hotels under development and other proposed properties. The Company is subject to numerous United States and international laws, including laws governing employees in its hotels in such areas as minimum wage and maximum working hours, overtime, working conditions, hiring and firing employees and work permits.
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