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Phoenix Companies Inc (NYSE:PNX)
Interest Coverage
10,000.00 (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. Phoenix Companies Inc's Operating Income for the three months ended in Dec. 2013 was $0 Mil. Phoenix Companies Inc's Interest Expense for the three months ended in Dec. 2013 was $0 Mil. Phoenix Companies Inc's interest coverage for the quarter that ended in Dec. 2013 was 10,000.00. The higher the ratio, the stronger the company’s financial strength is.

PNX' s 10-Year Interest Coverage Range
Min: 0.88   Max: 9999.99
Current: 0

0.88
9999.99

During the past 13 years, the highest interest coverage of Phoenix Companies Inc was 9999.99. The lowest was 0.88. And the median was 1.67.

PNX's Interest Coverageis ranked lower than
83% of the 158 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 22.74 vs. PNX: 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

Phoenix Companies 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

Phoenix Companies Inc had no debt.

Phoenix Companies Inc's Interest Coverage for the fiscal year that ended in Dec. 2012 is calculated as

Here, for the fiscal year that ended in Dec. 2012, Phoenix Companies Inc's Interest Expense was $-31 Mil. Its Operating Income was $-156 Mil. And its Long-Term Debt was $379 Mil.

Phoenix Companies Inc did not have earnings to cover the interest expense.

Phoenix Companies Inc's Interest Coverage for the quarter that ended in Dec. 2013 is calculated as

Here, for the three months ended in Dec. 2013, Phoenix Companies Inc's Interest Expense was $0 Mil. Its Operating Income was $0 Mil. And its Long-Term Debt was $0 Mil.

Phoenix Companies 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.

Phoenix Companies Inc Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
interest_coverage 0.88At LossAt LossAt Loss2.32At LossAt LossAt Loss1.01At Loss

Phoenix Companies Inc Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Dec13
interest_coverage At LossAt Loss1.843.77At Loss0.16At LossAt LossAt LossNo Debt
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