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GFI Group (GFI Group) Interest Coverage : 2.45 (As of Sep. 2015)


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What is GFI Group 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. GFI Group's Operating Income for the three months ended in Sep. 2015 was $17.3 Mil. GFI Group's Interest Expense for the three months ended in Sep. 2015 was $-7.1 Mil. GFI Group's interest coverage for the quarter that ended in Sep. 2015 was 2.45. The higher the ratio, the stronger the company's financial strength is.

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


GFIG's Interest Coverage is not ranked *
in the Capital Markets industry.
Industry Median: 19.19
* 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.

GFI Group Interest Coverage Historical Data

The historical data trend for GFI Group'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.

GFI Group Interest Coverage Chart

GFI Group Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.05 2.39 2.25 1.97 1.53

GFI Group Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 - 4.69 0.93 0.86 2.45

Competitive Comparison of GFI Group's Interest Coverage

For the Capital Markets subindustry, GFI Group'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.

GFI Group's Interest Coverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, GFI Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where GFI Group's Interest Coverage falls into.


GFI Group 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.

GFI Group's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, GFI Group's Interest Expense was $-32.3 Mil. Its Operating Income was $49.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $240.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2014 )/Interest Expense (A: Dec. 2014 )
=-1*49.283/-32.298
=1.53

GFI Group's Interest Coverage for the quarter that ended in Sep. 2015 is calculated as

Here, for the three months ended in Sep. 2015, GFI Group's Interest Expense was $-7.1 Mil. Its Operating Income was $17.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $240.0 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2015 )/Interest Expense (Q: Sep. 2015 )
=-1*17.329/-7.066
=2.45

* 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.

GFI Group  (OTCPK:GFIG) 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 .

GFI Group Interest Coverage Related Terms

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

GFI Group (GFI Group) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » GFI Group Inc (OTCPK:GFIG) » Definitions » Interest Coverage
Comparable Companies
HKSE:01911 LSE:PLUS TPE:2889 NSE:JMFINANCIL XAMS:FLOW HKSE:01476 TSE:7148 ROCO:5820 FUTU HKSE:01788 MIL:TIP HKSE:00086 CAI:HRHO.CA FRHC TSE:6080 AC BOM:532960 TPE:6005 TSE:6196 VALUEGFO
Traded in Other Exchanges
N/A
Address
Website
http://www.gfigroup.com
GFI Group Inc was incorporated under the laws of the State of Delaware in 2001. The Company provides wholesale brokerage services, clearing services and electronic execution and trading support products for financial markets. It provide brokerage and trade execution services, clearing services, market data and trading platform and other software products to institutional customers in markets for a range of fixed income, financial, equity and commodity instruments. The Company provides execution services for its institutional wholesale customers by either matching their trading needs with counterparties having reciprocal interests or directing their orders to an exchange or other trading venue. The Company offers its customers a hybrid brokerage approach, combining a range of telephonic and electronic trade execution services, depending on the nature of the products and the specific needs of its customers. The Company operates in five business segments: Americas Brokerage; Europe, the Middle East and Africa Brokerage; Asia Brokerage, Clearing and Backed Trading and All Other. Its brokerage operations provide brokerage services in four product categories: fixed income, financial, equity and commodity. It's Clearing and Backed Trading segment encompasses its clearing, risk management, settlement and other back-office services, as well as the capital the Company provide to start-up trading groups, small hedge funds, market-makers and individual traders. The All Other segment captures revenues and costs that are not directly assignable to the brokerage or clearing and backed trading operating business segments, consisting of Company's corporate business activities and operations and commercial revenues from sales and licensing of trading systems software, analytic and market data. The Company offers products and services including Fixed Income Products, Financial Products, Equity Products, Commodity Products, Clearing and Settlement Services, and Software, Analytic and Market Data. The Company's competitors include ICAP Plc, Tullett Prebon Plc, CME, the Chicago Board Options Exchange, and Eurex and Euronext. The Company's businesses are subject to extensive regulation by government and self-regulatory organizations both in the United States and abroad.
Executives
Fitzgerald Securities Cantor director, 10 percent owner 110 EAST 59TH STREET, NEW YORK NY 10022
Sean A Windeatt officer: Chief Operating Officer C/O BGC PARTNERS, INC., 499 PARK AVENNUE NY 10022
Howard W Lutnick director, 10 percent owner, officer: Chief Executive Officer
Stephen M Merkel director C/O BGC PARTNERS, INC., 499 PARK AVENUE, NEW YORK NY 10022
Michael Snow director C/O GFI GROUP INC., 55 WATER STREET, NEW YORK NY 10041
Frank J Fanzilli director 5 OLD LANTERN PL, NORWALK CT 06851
William J Moran director 135 EAST 57TH ST, NEW YORK NY 10022
Shaun D Lynn director C/O BGC PARTNERS, INC., 499 PARK AVENUE, NEW YORK NY 10022
Thomas Cancro officer: Principal Accounting Officer C/O GFI GROUP INC., NEW YORK NY 10041
Scott Pintoff officer: General Counsel and Secretary C/O MARKETAXESS HOLDINGS, INC., 55 HUDSON YARDS, FLOOR 15, NEW YORK NY 10001
John R Macdonald director
Christopher Pike director C/O ADVENT INTERNATIONAL CORPORATION 800 BOYLSTON STREET SUITE 3300 BOSTON MA 02199
Advent International Limited Partnership other: Member of group > 10% C/O ADVENT INTERNATIONAL CORP, 75 STATE ST 29TH FLOOR, BOSTON MA 02104
Advent Partners Gpe Iv Ltd Partnership other: Member of group > 10% 75 STATE STREET BOSTON MA 02109
Global Private Equity Iv Limited Partnership other: Member of group > 10% STATE STREET BOSTON MA 02109