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Nivalis Therapeutics Inc (NAS:NVLS)
Interest Coverage
No Debt (As of Mar. 2016)

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. Nivalis Therapeutics Inc's Operating Income for the three months ended in Mar. 2016 was $-7.93 Mil. Nivalis Therapeutics Inc's Interest Expense for the three months ended in Mar. 2016 was $0.00 Mil. Nivalis Therapeutics Inc has no debt. The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

Nivalis Therapeutics Inc has no debt.

NVLS' s Interest Coverage Range Over the Past 10 Years
Min: 9999.99   Max: 9999.99
Current: No Debt

NVLS's Interest Coverage is ranked higher than
52% of the 369 Companies
in the Global Biotechnology industry.

( Industry Median: 10000.00 vs. NVLS: No Debt )

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


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

The company did not have earnings to cover the interest expense.

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

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Nivalis Therapeutics Inc'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, Nivalis Therapeutics Inc's Interest Expense was $0.00 Mil. Its Operating Income was $-22.90 Mil. And its Long-Term Debt was $0.00 Mil.

Nivalis Therapeutics Inc had no debt.

Nivalis Therapeutics Inc's Interest Coverage for the quarter that ended in Mar. 2016 is calculated as

Here, for the three months ended in Mar. 2016, Nivalis Therapeutics Inc's Interest Expense was $0.00 Mil. Its Operating Income was $-7.93 Mil. And its Long-Term Debt was $0.00 Mil.

Nivalis Therapeutics Inc had no debt.

* 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.

Nivalis Therapeutics Inc Annual Data

Dec12Dec13Dec14Dec15
interest_coverage At LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossNo Debt

Nivalis Therapeutics Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
interest_coverage No DebtAt LossAt LossAt LossNo DebtNo DebtNo DebtNo DebtNo DebtNo Debt
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