Switch to:
Republic Bancorp, Inc. (NAS:RBCAA)
Interest Coverage
1.99 (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. Republic Bancorp, Inc.'s Operating Income for the three months ended in Jun. 2014 was $9.7 Mil. Republic Bancorp, Inc.'s Interest Expense for the three months ended in Jun. 2014 was $-4.9 Mil. Republic Bancorp, Inc.'s interest coverage for the quarter that ended in Jun. 2014 was 1.99. The higher the ratio, the stronger the company’s financial strength is.

RBCAA' s 10-Year Interest Coverage Range
Min: 0.29   Max: 8.07
Current: 1.89

0.29
8.07

During the past 13 years, the highest interest coverage of Republic Bancorp, Inc. was 8.07. The lowest was 0.29. And the median was 0.76.

RBCAA's Interest Coverageis ranked higher than
75% of the 1595 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.27 vs. RBCAA: 1.89 )

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

Republic Bancorp, 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

Republic Bancorp, Inc. had no debt.

Republic Bancorp, Inc.'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, Republic Bancorp, Inc.'s Interest Expense was $-21.4 Mil. Its Operating Income was $40.5 Mil. And its Long-Term Debt was $646.2 Mil.

Interest Coverage=-1*Operating Income (A: Dec. 2013 )/Interest Expense (A: Dec. 2013 )
=-1*40.498/-21.393
=1.89

Republic Bancorp, Inc.'s Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the three months ended in Jun. 2014, Republic Bancorp, Inc.'s Interest Expense was $-4.9 Mil. Its Operating Income was $9.7 Mil. And its Long-Term Debt was $681.2 Mil.

Interest Coverage=-1*Operating Income (Q: Jun. 2014 )/Interest Expense (Q: Jun. 2014 )
=-1*9.654/-4.855
=1.99

* 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.

Republic Bancorp, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
interest_coverage 0.940.73At Loss0.370.721.352.684.778.071.89

Republic Bancorp, Inc. Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
interest_coverage 20.062.635.681.893.981.671.380.573.571.99
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