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Outerwall (Outerwall) Interest Coverage : 6.95 (As of Jun. 2016)


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What is Outerwall 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. Outerwall's Operating Income for the three months ended in Jun. 2016 was $72 Mil. Outerwall's Interest Expense for the three months ended in Jun. 2016 was $-10 Mil. Outerwall's interest coverage for the quarter that ended in Jun. 2016 was 6.95. The higher the ratio, the stronger the company's financial strength is.

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


OUTR's Interest Coverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 7.87
* 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.


Outerwall Interest Coverage Historical Data

The historical data trend for Outerwall'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.

* Premium members only.

Outerwall Interest Coverage Chart

Outerwall Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.58 13.75 6.46 5.40 3.50

Outerwall Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 6.02 2.63 5.20 6.95

Competitive Comparison of Outerwall's Interest Coverage

For the Specialty Retail subindustry, Outerwall'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.


Outerwall's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Outerwall's Interest Coverage distribution charts can be found below:

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



Outerwall 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.

Outerwall's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, Outerwall's Interest Expense was $-48 Mil. Its Operating Income was $169 Mil. And its Long-Term Debt & Capital Lease Obligation was $888 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2015 )/Interest Expense (A: Dec. 2015 )
=-1*168.875/-48.268
=3.50

Outerwall's Interest Coverage for the quarter that ended in Jun. 2016 is calculated as

Here, for the three months ended in Jun. 2016, Outerwall's Interest Expense was $-10 Mil. Its Operating Income was $72 Mil. And its Long-Term Debt & Capital Lease Obligation was $767 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2016 )/Interest Expense (Q: Jun. 2016 )
=-1*71.847/-10.336
=6.95

* 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.


Outerwall  (NAS:OUTR) 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 .


Outerwall Interest Coverage Related Terms

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


Outerwall (Outerwall) Business Description

Traded in Other Exchanges
N/A
Address
Outerwall Inc was incorporated in Delaware on October 12, 1993. The Company is a provider of automated retail solutions offering convenient products and services that benefit consumers and drive incremental retail traffic and revenue for retailers. The Company's automated retail includes its redbox segment where consumers can rent or purchase movies from self-service kiosks and its Coin segment where consumers can convert their coin to cash or stored value products at coin-counting self-service kiosks. The redbox business faces competition from many other providers, including those using other distribution channels. The coinstar business faces competition from supermarkets, banks and other companies that purchase and operate coin-counting equipment from companies such as ScanCoin, Cummins-Allison Corporation and others. The ecoATM business faces competition from the companies whose primary business consists of the purchase of used electronics, online retailers and web sites such as Gazelle, as well as brick and mortar stores which buy back used electronics. The business of the Company is subject to federal, state, local and foreign laws and government regulation.
Executives
Erik Prusch director, officer: Chief Executive Officer C/O CLEARWIRE CORPORATION, 4400 CARILLON POINT, KIRKLAND WA 98033
Nora Denzel director C/O OVERLAND STORAGE, INC., 4820 OVERLAND AVENUE, SAN DIEGO CA 92123
Jeffrey J Brown director 19900 MACARTHUR BLVD, SUITE 570, IRVINE CA 92612
Robert D Sznewajs director
Nelson C Chan director C/O SYNAPTICS INCORPORATED, 1251 MCKAY DRIVE, SAN JOSE CA 95131
Glenn W. Welling other: See Footnote 1 610 NEWPORT CENTER DRIVE, SUITE 950, NEWPORT BEACH CA 92660
Engaged Capital Holdings, Llc other: See Footnote 1 610 NEWPORT CENTER DRIVE, SUITE 950, NEWPORT BEACH CA 92660
Engaged Capital Flagship Master Fund, Lp other: See Footnote 1 CRICKET SQUARE, HUTCHINS DRIVE, P.O. BOX 2681, GRAND CAYMAN E9 KY1-1111
Engaged Capital Flagship Fund, L.p. other: See Footnote 1 610 NEWPORT CENTER DRIVE, SUITE 250, NEWPORT BEACH CA 90272
Engaged Capital Llc other: See Footnote 1 610 NEWPORT CENTER DRIVE, SUITE 950, NEWPORT BEACH CA 92660
Engaged Capital Flagship Fund, Ltd. other: See Footnote 1 610 NEWPORT CENTER DRIVE, SUITE 250, NEWPORT BEACH CA 92660
Engaged Capital I Lp other: See Footnote 1 and 6 610 NEWPORT CENTER DRIVE, SUITE 250, NEWPORT BEACH CA 90272
Engaged Capital I Offshore Ltd other: See Footnote 1 and 6 610 NEWPORT CENTER DRIVE, SUITE 250, NEWPORT BEACH CA 92660
Engaged Capital Master Feeder I, Lp other: See Footnote 1 and 6 CRICKET SQUARE, HUTCHINS DRIVE, P.O. BOX 2681, GRAND CAYMAN E9 KY1-1111
Park West Asset Management Llc other: Former ten percent (10%) owner 1 LETTERMAN DRIVE, SUITE C5-900, SAN FRANCISCO CA 94129

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