Providence & Worcester Railroad Co (Providence & Worcester Railroad Co) Interest Coverage : 9.20 (As of Jun. 2016)

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What is Providence & Worcester Railroad 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. Providence & Worcester Railroad Co's Operating Income for the three months ended in Jun. 2016 was $0.23 Mil. Providence & Worcester Railroad Co's Interest Expense for the three months ended in Jun. 2016 was $-0.03 Mil. Providence & Worcester Railroad Co's interest coverage for the quarter that ended in Jun. 2016 was 9.20. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Providence & Worcester Railroad Co's Interest Coverage or its related term are showing as below:

PWX's Interest Coverage is not ranked ^*
in the Transportation industry.
Industry Median: 5.395
* 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.

Providence & Worcester Railroad Co Interest Coverage Historical Data

The historical data trend for Providence & Worcester Railroad 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.

* Premium members only.

Providence & Worcester Railroad Co Interest Coverage Chart

Providence & Worcester Railroad Co Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

Get a 7-Day Free Trial

3.91

12.28

No Debt

646.50

Providence & Worcester Railroad Co 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															No Debt	No Debt	N/A	-	9.20

Competitive Comparison of Providence & Worcester Railroad Co's Interest Coverage

For the Railroads subindustry, Providence & Worcester Railroad 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.

Providence & Worcester Railroad Co's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Providence & Worcester Railroad Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Providence & Worcester Railroad Co's Interest Coverage falls into.

Providence & Worcester Railroad 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.

Providence & Worcester Railroad Co'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, Providence & Worcester Railroad Co's Interest Expense was $-0.00 Mil. Its Operating Income was $2.59 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.98 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	2.586	/	-0.004
	=	646.50

Providence & Worcester Railroad Co's Interest Coverage for the quarter that ended in Jun. 2016 is calculated as

Here, for the three months ended in Jun. 2016, Providence & Worcester Railroad Co's Interest Expense was $-0.03 Mil. Its Operating Income was $0.23 Mil. And its Long-Term Debt & Capital Lease Obligation was $4.83 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2016 )	/	Interest Expense (Q: Jun. 2016 )
	=	-1	*	0.23	/	-0.025
	=	9.20

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

Providence & Worcester Railroad Co (NAS:PWX) 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 .

Providence & Worcester Railroad Co Interest Coverage Related Terms

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

Providence & Worcester Railroad Co (Providence & Worcester Railroad Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Providence & Worcester Railroad Co (NAS:PWX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.pwrr.com

Providence & Worcester Railroad Co commenced its operations in 1973. The Company is a short-line freight railroad as defined by the American Association of Railroads operating in Massachusetts, Rhode Island, Connecticut and New York. The Company is the only interstate freight carrier serving the State of Rhode Island. The Company services the international double-stack intermodal terminal facility in New England in Worcester, Massachusetts, a strategic location for regional transportation and distribution enterprises. The Company transports commodities for its customers, including automobiles, construction aggregates, iron and steel products, chemicals and plastics, lumber, scrap metals, plastic resins, cement, coal, construction and demolition debris, and processed foods and edible foodstuffs, such as corn syrup and vegetable oils. Its customers include Exxon Mobil Corporation, Ford Motor Company, Frito-Lay, Inc., Global LLP, GDF SUEZ Energy North America, International Paper Company, Lehigh Cement, Cargill, Inc., Northeast Utilities, Nucor Steel, Rawson Materials, Renewable Products Marketing Group, Subaru of New England, Tilcon Connecticut, Inc. and Toray Plastics, Inc. The Company competes with other carriers in the siting of new rail-oriented businesses in the region. The Company also competes with other modes of transportation, particularly long-haul trucking companies, for the transportation of commodities, and ocean-going vessels for the transportation of containers. The Company is subject to governmental regulation by the STB, the FRA, the Transportation Security Administration and other federal, state and local regulatory authorities with respect to certain rates and railroad operations, as well as a variety of health, safety, labor, environmental and other matters.

Executives

Daniel T Noreck	officer: Treasurer and CFO	75 HAMMOND STREET, WORCESTER MA 01610
P Scott Conti	director, officer: President and COO	75 HAMMOND STREET, WORCESTER MA 01610
Robert H Eder	director, 10 percent owner, officer: Chief Executive Officer	5 STEEPLE STREET, #303, PROVIDENCE RI 02903
Linda Eder	10 percent owner	100 DEXTER ROAD, EAST PROVIDENCE RI 02914
Craig M Scott	director	75 HAMMOND STREET, WORCESTER MA 01610
Stephen J Carlotti	10 percent owner	1500 FLEET CENTER, PROVIDENCE RI 02903
Merrill W Sherman	director	131 CLARENDON STREET, BOSTON MA 02116

Providence & Worcester Railroad Co (Providence & Worcester Railroad Co) Headlines

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