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Sirona Dental Systems Inc (NAS:SIRO)
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. Sirona Dental Systems Inc's Operating Income for the three months ended in Jun. 2014 was $67 Mil. Sirona Dental Systems Inc's Interest Expense for the three months ended in Jun. 2014 was $0 Mil. Sirona Dental Systems 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.

Good Sign:

Ben Graham prefers companies interest coverage is at least 5. Sirona Dental Systems Inc has enough cash to cover all of its debt. Its financial situation is stable.

SIRO' s 10-Year Interest Coverage Range
Min: 0.96   Max: 9999.99
Current: 53.52

0.96
9999.99

During the past 13 years, the highest interest coverage of Sirona Dental Systems Inc was 9999.99. The lowest was 0.96. And the median was 20.56.

SIRO's Interest Coverageis ranked higher than
75% of the 210 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 25.28 vs. SIRO: 53.52 )

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

Sirona Dental Systems 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

Sirona Dental Systems Inc had no debt.

Sirona Dental Systems Inc's Interest Coverage for the fiscal year that ended in Sep. 2013 is calculated as

Here, for the fiscal year that ended in Sep. 2013, Sirona Dental Systems Inc's Interest Expense was $-4 Mil. Its Operating Income was $213 Mil. And its Long-Term Debt was $75 Mil.

Interest Coverage=-1*Operating Income (A: Sep. 2013 )/Interest Expense (A: Sep. 2013 )
=-1*212.732/-3.975
=53.52

Sirona Dental Systems Inc's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the three months ended in Jun. 2014, Sirona Dental Systems Inc's Interest Expense was $0 Mil. Its Operating Income was $67 Mil. And its Long-Term Debt was $78 Mil.

Sirona Dental Systems 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.

Sirona Dental Systems Inc Annual Data

Mar05Mar06Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
interest_coverage No DebtNo Debt0.961.682.013.5410.8841.4549.3153.52

Sirona Dental Systems Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
interest_coverage At LossAt Loss46.14At Loss59.50At LossAt LossAt Loss56.00At Loss
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