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National Bank of Greece (NYSE:NBG)
Interest Coverage
0.00 (As of Jun. 2014)

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. National Bank of Greece's Operating Income for the three months ended in Jun. 2014 was $-176 Mil. National Bank of Greece's Interest Expense for the three months ended in Jun. 2014 was $-779 Mil. National Bank of Greece's interest coverage for the quarter that ended in Jun. 2014 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

NBG' s 10-Year Interest Coverage Range
Min: 0.11   Max: 0.96
Current: 0.11

0.11
0.96

During the past 13 years, the highest interest coverage of National Bank of Greece was 0.96. The lowest was 0.11. And the median was 0.30.

NBG's Interest Coverageis ranked lower than
52% of the 1622 Companies
in the Global Banks - Regional - Europe industry.

( Industry Median: 1.27 vs. NBG: 0.11 )

Definition

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

National Bank of Greece did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt is 0, or Interest Expense is positive, then

National Bank of Greece had no debt.

National Bank of Greece's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, National Bank of Greece's Interest Expense was $-3,042 Mil. Its Operating Income was $322 Mil. And its Long-Term Debt was $5,804 Mil.

Interest Coverage=-1*Operating Income (A: Dec. 2013 )/Interest Expense (A: Dec. 2013 )
=-1*321.525885559/-3042.23433243
=0.11

National Bank of Greece's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the three months ended in Jun. 2014, National Bank of Greece's Interest Expense was $-779 Mil. Its Operating Income was $-176 Mil. And its Long-Term Debt was $7,332 Mil.

National Bank of Greece did not have earnings to cover the interest expense.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The higher the ratio, the stronger the company’s financial strength is.


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.


Related Terms

Operating Income, Interest Expense, Financial Strength


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

National Bank of Greece Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
interest_coverage 0.240.960.790.650.350.33At LossAt LossAt Loss0.11

National Bank of Greece Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
interest_coverage At LossAt LossAt LossAt LossAt Loss0.16At Loss0.700.02At Loss
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