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Sycamore Networks (Sycamore Networks) Interest Coverage : No Debt (1) (As of Jan. 2013)


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What is Sycamore Networks Interest Coverage?

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 by its Interest Expense. Sycamore Networks's Operating Income for the three months ended in Jan. 2013 was $-4.04 Mil. Sycamore Networks's Interest Expense for the three months ended in Jan. 2013 was $0.00 Mil. Sycamore Networks has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

The historical rank and industry rank for Sycamore Networks's Interest Coverage or its related term are showing as below:


SCMR's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 12.38
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Sycamore Networks Interest Coverage Historical Data

The historical data trend for Sycamore Networks's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Sycamore Networks Interest Coverage Chart

Sycamore Networks Annual Data
Trend Jul03 Jul04 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only No Debt No Debt No Debt No Debt No Debt

Sycamore Networks Quarterly Data
Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only No Debt No Debt No Debt No Debt No Debt

Competitive Comparison of Sycamore Networks's Interest Coverage

For the Communication Equipment subindustry, Sycamore Networks's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sycamore Networks's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Sycamore Networks's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sycamore Networks's Interest Coverage falls into.



Sycamore Networks Interest Coverage Calculation

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 & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sycamore Networks's Interest Coverage for the fiscal year that ended in Jul. 2012 is calculated as

Here, for the fiscal year that ended in Jul. 2012, Sycamore Networks's Interest Expense was $0.00 Mil. Its Operating Income was $-13.96 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Sycamore Networks had no debt (1).

Sycamore Networks's Interest Coverage for the quarter that ended in Jan. 2013 is calculated as

Here, for the three months ended in Jan. 2013, Sycamore Networks's Interest Expense was $0.00 Mil. Its Operating Income was $-4.04 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Sycamore Networks had no debt (1).

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Sycamore Networks  (OTCPK:SCMR) Interest Coverage 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 .


Sycamore Networks Interest Coverage Related Terms

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Sycamore Networks (Sycamore Networks) Business Description

Traded in Other Exchanges
N/A
Address
Sycamore Networks Inc was incorporated under the laws of the State of Delaware on February 17, 1998. The Company develops and markets Intelligent Bandwidth Management solutions for fixed line and mobile network operators worldwide and provides services associated with such products.
Executives
Robert E Donahue director
John W Gerdelman director C/O SYCAMORE NETWORKS INC, 220 MILL RD, CHELMSFORD MA 01824
Alan Cormier officer: General Counsel and Secretary 220 MILL ROAD, CHELMSFORD MA 01824