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Novogen Ltd (NAS:NVGN)
Interest Coverage
0.00 (As of Dec. 2013)

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. Novogen Ltd's Operating Income for the six months ended in Dec. 2013 was $-2.09 Mil. Novogen Ltd's Interest Expense for the six months ended in Dec. 2013 was $-0.48 Mil. Novogen Ltd's interest coverage for the quarter that ended in Dec. 2013 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

NVGN' s 10-Year Interest Coverage Range
Min: 9999.99   Max: 9999.99
Current: 0

During the past 13 years, the highest interest coverage of Novogen Ltd was 9999.99. The lowest was 9999.99. And the median was 10000.00.

NVGN's Interest Coverageis ranked lower than
107% of the 484 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 76.05 vs. NVGN: 0.00 )

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

Novogen Ltd 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

Novogen Ltd had no debt.

Novogen Ltd's Interest Coverage for the fiscal year that ended in Jun. 2013 is calculated as

Here, for the fiscal year that ended in Jun. 2013, Novogen Ltd's Interest Expense was $-0.12 Mil. Its Operating Income was $-1.26 Mil. And its Long-Term Debt was $0.00 Mil.

Novogen Ltd did not have earnings to cover the interest expense.

Novogen Ltd's Interest Coverage for the quarter that ended in Dec. 2013 is calculated as

Here, for the six months ended in Dec. 2013, Novogen Ltd's Interest Expense was $-0.48 Mil. Its Operating Income was $-2.09 Mil. And its Long-Term Debt was $0.00 Mil.

Novogen Ltd 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.

Novogen Ltd Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
interest_coverage At LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossNo DebtAt Loss

Novogen Ltd Semi-Annual Data

Jun09Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13
interest_coverage No DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtAt LossAt Loss
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