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Premier Exhibitions, Inc. (NAS:PRXI)
Interest Coverage
0.00 (As of Nov. 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. Premier Exhibitions, Inc.'s Operating Income for the three months ended in Nov. 2013 was $-0.36 Mil. Premier Exhibitions, Inc.'s Interest Expense for the three months ended in Nov. 2013 was $-0.07 Mil. Premier Exhibitions, Inc.'s interest coverage for the quarter that ended in Nov. 2013 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

PRXI' s 10-Year Interest Coverage Range
Min: 4   Max: 9999.99
Current: 4

4
9999.99

During the past 13 years, the highest interest coverage of Premier Exhibitions, Inc. was 9999.99. The lowest was 4.00. And the median was 10000.00.

PRXI's Interest Coverageis ranked higher than
54% of the 540 Companies
in the Global Leisure industry.

( Industry Median: 13.65 vs. PRXI: 4.00 )

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

Premier Exhibitions, 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

Premier Exhibitions, Inc. had no debt.

Premier Exhibitions, Inc.'s Interest Coverage for the fiscal year that ended in Feb. 2013 is calculated as

Here, for the fiscal year that ended in Feb. 2013, Premier Exhibitions, Inc.'s Interest Expense was $-0.68 Mil. Its Operating Income was $2.72 Mil. And its Long-Term Debt was $2.71 Mil.

Interest Coverage=-1*Operating Income (A: Feb. 2013 )/Interest Expense (A: Feb. 2013 )
=-1*2.723/-0.681
=4.00

Premier Exhibitions, Inc.'s Interest Coverage for the quarter that ended in Nov. 2013 is calculated as

Here, for the three months ended in Nov. 2013, Premier Exhibitions, Inc.'s Interest Expense was $-0.07 Mil. Its Operating Income was $-0.36 Mil. And its Long-Term Debt was $1.43 Mil.

Premier Exhibitions, Inc. did not have earnings to cover the interest expense.

* 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.

Premier Exhibitions, Inc. Annual Data

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13
interest_coverage No DebtAt Loss54.74238.41No DebtAt LossAt LossNo DebtAt Loss4.00

Premier Exhibitions, Inc. Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13
interest_coverage No DebtAt LossAt Loss12.9314.12At LossAt Loss9.15At LossAt Loss
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