Switch to:
Pool Corp (NAS:POOL)
Interest Coverage
0.00 (As of Jun. 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. Pool Corp's Operating Income for the three months ended in Jun. 2014 was $122 Mil. Pool Corp's Interest Expense for the three months ended in Jun. 2014 was $0 Mil. Pool Corp's interest coverage for the quarter that ended in Jun. 2014 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

POOL' s 10-Year Interest Coverage Range
Min: 1.86   Max: 29.47
Current: 0

1.86
29.47

During the past 13 years, the highest interest coverage of Pool Corp was 29.47. The lowest was 1.86. And the median was 12.51.

POOL's Interest Coverageis ranked lower than
111% of the 554 Companies
in the Global Leisure industry.

( Industry Median: 15.20 vs. POOL: 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

Pool Corp 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

Pool Corp had no debt.

Pool Corp'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, Pool Corp's Interest Expense was $0 Mil. Its Operating Income was $165 Mil. And its Long-Term Debt was $246 Mil.

Pool Corp had no debt.

Pool Corp's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the three months ended in Jun. 2014, Pool Corp's Interest Expense was $0 Mil. Its Operating Income was $122 Mil. And its Long-Term Debt was $431 Mil.

Pool Corp 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.

Pool Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
interest_coverage 29.4721.8011.016.046.119.1515.3015.7022.39At Loss

Pool Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
interest_coverage 4.0849.1524.31At Loss4.2953.82At LossAt LossAt LossAt Loss
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide