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Pain Therapeutics Inc (NAS:PTIE)
Interest Coverage
No Debt (As of Mar. 2015)

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. Pain Therapeutics Inc's Operating Income for the three months ended in Mar. 2015 was $-2.60 Mil. Pain Therapeutics Inc's Interest Expense for the three months ended in Mar. 2015 was $0.00 Mil. Pain Therapeutics Inc has no debt. The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

Pain Therapeutics Inc has no debt.

PTIE' s 10-Year Interest Coverage Range
Min: 9999.99   Max: 9999.99
Current: No Debt

During the past 13 years, the highest interest coverage of Pain Therapeutics Inc was 9999.99. The lowest was 9999.99. And the median was 10000.00.

PTIE's Interest Coverageis ranked higher than
89% of the 382 Companies
in the Global Biotechnology industry.

( Industry Median: 10000.00 vs. PTIE: No Debt )

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

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt is 0, then

The company had no debt.

Pain Therapeutics Inc'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, Pain Therapeutics Inc's Interest Expense was $0.00 Mil. Its Operating Income was $-12.43 Mil. And its Long-Term Debt was $0.00 Mil.

Pain Therapeutics Inc had no debt.

Pain Therapeutics Inc's Interest Coverage for the quarter that ended in Mar. 2015 is calculated as

Here, for the three months ended in Mar. 2015, Pain Therapeutics Inc's Interest Expense was $0.00 Mil. Its Operating Income was $-2.60 Mil. And its Long-Term Debt was $0.00 Mil.

Pain Therapeutics 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.

Pain Therapeutics Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
interest_coverage No DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo Debt

Pain Therapeutics Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
interest_coverage No DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo Debt
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