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Synutra International (Synutra International) Interest Coverage : 1.92 (As of Dec. 2016)


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What is Synutra International 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. Synutra International's Operating Income for the three months ended in Dec. 2016 was $6.9 Mil. Synutra International's Interest Expense for the three months ended in Dec. 2016 was $-3.6 Mil. Synutra International's interest coverage for the quarter that ended in Dec. 2016 was 1.92. The higher the ratio, the stronger the company's financial strength is.

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


SYUT's Interest Coverage is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 8.39
* 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.


Synutra International Interest Coverage Historical Data

The historical data trend for Synutra International'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.

Synutra International Interest Coverage Chart

Synutra International Annual Data
Trend Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 - 2.58 4.60 2.84

Synutra International Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 5.01 0.12 1.42 2.07 1.92

Competitive Comparison of Synutra International's Interest Coverage

For the Packaged Foods subindustry, Synutra International'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.


Synutra International's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Synutra International's Interest Coverage distribution charts can be found below:

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



Synutra International 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.

Synutra International's Interest Coverage for the fiscal year that ended in Mar. 2016 is calculated as

Here, for the fiscal year that ended in Mar. 2016, Synutra International's Interest Expense was $-16.4 Mil. Its Operating Income was $46.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $322.8 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2016 )/Interest Expense (A: Mar. 2016 )
=-1*46.494/-16.362
=2.84

Synutra International's Interest Coverage for the quarter that ended in Dec. 2016 is calculated as

Here, for the three months ended in Dec. 2016, Synutra International's Interest Expense was $-3.6 Mil. Its Operating Income was $6.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $278.3 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2016 )/Interest Expense (Q: Dec. 2016 )
=-1*6.889/-3.58
=1.92

* 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.


Synutra International  (NAS:SYUT) 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 .


Synutra International Interest Coverage Related Terms

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


Synutra International (Synutra International) Business Description

Traded in Other Exchanges
N/A
Address
Synutra International Inc was formed on October 30, 1998. The Company is engaged in the production, distribution & sales of dairy based nutritional products under Shengyuan or Synutra line of brands in China. Its other nutritional product includes prepared foods, nutritional ingredients & supplements. It is focused on selling powdered formula products for infants and adults, and is also engaged in other nutritional product offerings, such as prepared foods and certain nutritional supplements. It sells the products through an extensive nationwide sales and distribution network covering all provinces and provincial-level municipalities in mainland China. It has three reportable segments; nutritional food, nutritional supplement and other business. The Nutritional Food segment includes the sale of powdered infant and adult formula products, with brands including Super, My Angel and Dutch Cow, as well as the sale of prepared foods under the Huiliduo brand; Nutritional Supplement: includes the production and sale of nutritional supplements such as chondroitin sulfate to third parties, and microencapsulated Docosahexanoic Acid ("DHA") and Arachidonic Acid ("ARA") to the nutritional food segment for use in powdered formula production; and Other Business includes non-core businesses such as ancillary sales of excess or unusable ingredients and materials to industrial customers, providing genetic diagnostic services for new born babies, and sales of cosmetics to pregnant women. Its business requires certain key raw materials, such as milk powder and whey powder. The Company competes with both multinational and domestic infant formula producers.
Executives
Warburg Pincus & Co. 10 percent owner 450 LEXINGTON AVENUE, NEW YORK, NY NY 100173147
Warburg Pincus Llc 10 percent owner 450 LEXINGTON AVENUE, NEW YORK NY 10017
Warburg Pincus Partners Llc 10 percent owner 450 LEXINGTON AVENUE, NEW YORK NY 10017
Joseph P. Landy 10 percent owner C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Charles R Kaye 10 percent owner C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Warburg Pincus Private Equity Ix, L.p. 10 percent owner C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Warburg Pincus Ix Llc 10 percent owner 450 LEXINGTON AVENUE, NEW YORK NY 10017
David Hui Li director C/O WARBURG PINCUS LLC 450 LEXINGTON AVENUE NEW YORK NY 10017

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