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Omnicell Inc (NAS:OMCL)
Interest Coverage
10,000.00 (As of Mar. 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. Omnicell Inc's Operating Income for the three months ended in Mar. 2014 was $10.0 Mil. Omnicell Inc's Interest Expense for the three months ended in Mar. 2014 was $0.0 Mil. Omnicell Inc's interest coverage for the quarter that ended in Mar. 2014 was 10,000.00. The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

Omnicell Inc has no debt.

OMCL' s 10-Year Interest Coverage Range
Min: 44.6   Max: 2381.5
Current: 289.34

44.6
2381.5

During the past 13 years, the highest interest coverage of Omnicell Inc was 2381.50. The lowest was 44.60. And the median was 923.29.

OMCL's Interest Coverageis ranked higher than
63% of the 1081 Companies
in the Global Health Information Services industry.

( Industry Median: 554.09 vs. OMCL: 289.34 )

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

Omnicell Inc 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

Omnicell Inc had no debt.

Omnicell Inc'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, Omnicell Inc's Interest Expense was $-0.1 Mil. Its Operating Income was $35.3 Mil. And its Long-Term Debt was $0.0 Mil.

Interest Coverage=-1*Operating Income (A: Dec. 2013 )/Interest Expense (A: Dec. 2013 )
=-1*35.299/-0.122
=289.34

Omnicell Inc's Interest Coverage for the quarter that ended in Mar. 2014 is calculated as

Here, for the three months ended in Mar. 2014, Omnicell Inc's Interest Expense was $0.0 Mil. Its Operating Income was $10.0 Mil. And its Long-Term Debt was $0.0 Mil.

Omnicell 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.

Omnicell Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
interest_coverage 1,171.89At Loss1,157.00911.201,156.0044.602,381.50121.97935.38289.34

Omnicell Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
interest_coverage No DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo Debt
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