GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Vimicro International Corp (NAS:VIMC) » Definitions » Interest Coverage

Vimicro International (Vimicro International) Interest Coverage : 44.98 (As of Jun. 2015)


View and export this data going back to . Start your Free Trial

What is Vimicro 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. Vimicro International's Operating Income for the three months ended in Jun. 2015 was $6.0 Mil. Vimicro International's Interest Expense for the three months ended in Jun. 2015 was $-0.1 Mil. Vimicro International's interest coverage for the quarter that ended in Jun. 2015 was 44.98. The higher the ratio, the stronger the company's financial strength is.

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


VIMC's Interest Coverage is not ranked *
in the Semiconductors industry.
Industry Median: 20.52
* 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.


Vimicro International Interest Coverage Historical Data

The historical data trend for Vimicro 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.

Vimicro International Interest Coverage Chart

Vimicro International Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - No Debt N/A - 45.46

Vimicro International Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
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 - 107.88 130.90 3.04 44.98

Competitive Comparison of Vimicro International's Interest Coverage

For the Semiconductors subindustry, Vimicro 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.


Vimicro International's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Vimicro International's Interest Coverage distribution charts can be found below:

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



Vimicro 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.

Vimicro International's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, Vimicro International's Interest Expense was $-0.1 Mil. Its Operating Income was $5.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $9.2 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2014 )/Interest Expense (A: Dec. 2014 )
=-1*5.228/-0.115
=45.46

Vimicro International's Interest Coverage for the quarter that ended in Jun. 2015 is calculated as

Here, for the three months ended in Jun. 2015, Vimicro International's Interest Expense was $-0.1 Mil. Its Operating Income was $6.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $9.2 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2015 )/Interest Expense (Q: Jun. 2015 )
=-1*6.027/-0.134
=44.98

* 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.


Vimicro International  (NAS:VIMC) 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 .


Vimicro International Interest Coverage Related Terms

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


Vimicro International (Vimicro International) Business Description

Traded in Other Exchanges
N/A
Address
Vimicro International is one of China's leading semiconductor design companies. The firm makes mixed-signal multimedia chips used in PC, embedded notebook webcams, mobile phones, and video cameras. The firm recently launched a surveillance segment that provides comprehensive security systems to customers, bundling its chips with other hardware, software, and nonsoftware acquired from third party vendors. The company was founded in 1999.

Vimicro International (Vimicro International) Headlines

No Headlines