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Banco Santander SA (NYSE:SAN)
Interest Coverage
0.00 (As of Dec. 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. Banco Santander SA's Operating Income for the three months ended in Dec. 2013 was $2,717 Mil. Banco Santander SA's Interest Expense for the three months ended in Dec. 2013 was $0 Mil. Banco Santander SA's interest coverage for the quarter that ended in Dec. 2013 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

SAN' s 10-Year Interest Coverage Range
Min: 0.04   Max: 9999.99
Current: No Debt

0.04
9999.99

During the past 13 years, the highest interest coverage of Banco Santander SA was 9999.99. The lowest was 0.04. And the median was 0.22.

SAN's Interest Coverageis ranked higher than
99% of the 1357 Companies
in the Global Banks - Regional - Europe industry.

( Industry Median: 1.13 vs. SAN: 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

Banco Santander SA 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

Banco Santander SA had no debt.

Banco Santander SA'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, Banco Santander SA's Interest Expense was $0 Mil. Its Operating Income was $11,610 Mil. And its Long-Term Debt was $21,988 Mil.

Banco Santander SA had no debt.

Banco Santander SA's Interest Coverage for the quarter that ended in Dec. 2013 is calculated as

Here, for the three months ended in Dec. 2013, Banco Santander SA's Interest Expense was $0 Mil. Its Operating Income was $2,717 Mil. And its Long-Term Debt was $21,988 Mil.

Banco Santander SA 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.

Banco Santander SA Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Jun13Dec13
interest_coverage 0.340.360.360.190.330.430.190.04No DebtAt Loss

Banco Santander SA Quarterly Data

Mar11Jun11Sep11Dec11Jun12Sep12Dec12Jun13Sep13Dec13
interest_coverage At LossNo DebtAt LossAt LossNo DebtAt LossAt LossNo DebtAt LossAt Loss
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