GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Champion Industries Inc (OTCPK:CHMP) » Definitions » Interest Coverage

Champion Industries (Champion Industries) Interest Coverage : 0.42 (As of Apr. 2016)


View and export this data going back to 2012. Start your Free Trial

What is Champion Industries 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. Champion Industries's Operating Income for the three months ended in Apr. 2016 was $0.08 Mil. Champion Industries's Interest Expense for the three months ended in Apr. 2016 was $-0.18 Mil. Champion Industries's interest coverage for the quarter that ended in Apr. 2016 was 0.42. The higher the ratio, the stronger the company's financial strength is.

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


CHMP's Interest Coverage is not ranked *
in the Industrial Products industry.
Industry Median: 13.79
* 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.


Champion Industries Interest Coverage Historical Data

The historical data trend for Champion Industries'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.

Champion Industries Interest Coverage Chart

Champion Industries Annual Data
Trend Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.92 0.21 0.23 - -

Champion Industries Quarterly Data
Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16
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 1.50 - 0.26 - 0.42

Competitive Comparison of Champion Industries's Interest Coverage

For the Business Equipment & Supplies subindustry, Champion Industries'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.


Champion Industries's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Champion Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Champion Industries's Interest Coverage falls into.



Champion Industries 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.

Champion Industries's Interest Coverage for the fiscal year that ended in Oct. 2015 is calculated as

Here, for the fiscal year that ended in Oct. 2015, Champion Industries's Interest Expense was $-0.86 Mil. Its Operating Income was $-0.21 Mil. And its Long-Term Debt & Capital Lease Obligation was $8.81 Mil.

Champion Industries did not have earnings to cover the interest expense.

Champion Industries's Interest Coverage for the quarter that ended in Apr. 2016 is calculated as

Here, for the three months ended in Apr. 2016, Champion Industries's Interest Expense was $-0.18 Mil. Its Operating Income was $0.08 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.58 Mil.

Interest Coverage=-1* Operating Income (Q: Apr. 2016 )/Interest Expense (Q: Apr. 2016 )
=-1*0.075/-0.177
=0.42

* 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.


Champion Industries  (OTCPK:CHMP) 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 .


Champion Industries Interest Coverage Related Terms

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


Champion Industries (Champion Industries) Business Description

Traded in Other Exchanges
N/A
Address
2450 First Avenue, P.O. Box 2968, Huntington, WV, USA, 25728
Champion Industries Inc is a commercial printer, business form manufacturer, and supplier of office products and office furniture. The company operates principally in two industry segments organized on the basis of product lines: Printing segment and Office Products and Furniture segment. The Printing segment comprises the production, printing and sale, printed materials including brochures, pamphlets, reports, tags, continuous and other forms principally to commercial customers. The Office Product and Furniture segment are engaged in the sale of office products and office furniture including interior design services. Printing segment is the major revenue contributor to the company.
Executives
Philip E Cline director P O BOX 119 HUNTINGTON WV 25706-0119
Marshall T Reynolds director, 10 percent owner, officer: Chairman/Chief Exec. Officer 2450 FIRST AVENUE, HUNTINGTON WV 25704
Toney K Adkins officer: President and COO ROUTE 1 BOX 622 GENOA WV 25517
Todd R Fry officer: Sen.Vice Pres./Chief Fin. Off. CHAMPION INDUSTRIES, P O BOX 2968, HUNTINGTON WV 25728-2968
Mooney Harley F Jr director 1673 WOODVALE DRIVE, CHARLESTON WV 25314
Neal Scaggs director 302 CENTRAL AVENUE, LOGAN WV 25601
Wilcox Glenn W Sr director ONE WEST PACK SQUARE SUITE 1700, ASHEVILLE NC 28801

Champion Industries (Champion Industries) Headlines