Switch to:
Renewable Energy Group Inc (NAS:REGI)
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. Renewable Energy Group Inc's Operating Income for the three months ended in Jun. 2014 was $-0 Mil. Renewable Energy Group Inc's Interest Expense for the three months ended in Jun. 2014 was $-1 Mil. Renewable Energy Group Inc'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.

REGI' s 10-Year Interest Coverage Range
Min: 3.4   Max: 80.65
Current: 80.65

3.4
80.65

During the past 6 years, the highest interest coverage of Renewable Energy Group Inc was 80.65. The lowest was 3.40. And the median was 11.46.

REGI's Interest Coverageis ranked higher than
88% of the 134 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 6.98 vs. REGI: 80.65 )

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

Renewable Energy Group 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

Renewable Energy Group Inc had no debt.

Renewable Energy Group 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, Renewable Energy Group Inc's Interest Expense was $-2 Mil. Its Operating Income was $193 Mil. And its Long-Term Debt was $35 Mil.

Interest Coverage=-1*Operating Income (A: Dec. 2013 )/Interest Expense (A: Dec. 2013 )
=-1*193.31/-2.397
=80.65

Renewable Energy Group Inc's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the three months ended in Jun. 2014, Renewable Energy Group Inc's Interest Expense was $-1 Mil. Its Operating Income was $-0 Mil. And its Long-Term Debt was $250 Mil.

Renewable Energy Group 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.

Renewable Energy Group Inc Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13
interest_coverage At LossAt LossAt LossAt LossAt LossAt LossAt Loss11.463.4080.65

Renewable Energy Group Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
interest_coverage 3.8718.82At LossAt Loss133.7764.5078.2750.22At 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