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Stanley Furniture Co Inc (NAS:STLY)
Interest Coverage
10,000.00 (As of Sep. 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. Stanley Furniture Co Inc's Operating Income for the three months ended in Sep. 2014 was $-0.38 Mil. Stanley Furniture Co Inc's Interest Expense for the three months ended in Sep. 2014 was $0.00 Mil. Stanley Furniture Co Inc's interest coverage for the quarter that ended in Sep. 2014 was 10,000.00. The higher the ratio, the stronger the company’s financial strength is.

STLY' s 10-Year Interest Coverage Range
Min: 0.23   Max: 17.15
Current: 0

0.23
17.15

During the past 13 years, the highest interest coverage of Stanley Furniture Co Inc was 17.15. The lowest was 0.23. And the median was 6.96.

STLY's Interest Coverageis ranked lower than
119% of the 529 Companies
in the Global Home Furnishings & Fixtures industry.

( Industry Median: 128.82 vs. STLY: 0.00 )

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

Stanley Furniture Co 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

Stanley Furniture Co Inc had no debt.

Stanley Furniture Co 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, Stanley Furniture Co Inc's Interest Expense was $-2.73 Mil. Its Operating Income was $-10.19 Mil. And its Long-Term Debt was $0.00 Mil.

Stanley Furniture Co Inc did not have earnings to cover the interest expense.

Stanley Furniture Co Inc's Interest Coverage for the quarter that ended in Sep. 2014 is calculated as

Here, for the three months ended in Sep. 2014, Stanley Furniture Co Inc's Interest Expense was $0.00 Mil. Its Operating Income was $-0.38 Mil. And its Long-Term Debt was $0.00 Mil.

Stanley Furniture Co 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.

Stanley Furniture Co Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
interest_coverage 14.8017.1510.860.23At LossAt LossAt LossAt LossAt LossAt Loss

Stanley Furniture Co Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
interest_coverage At LossAt LossAt LossAt LossAt LossNo DebtAt LossAt LossNo DebtNo Debt
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