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SUPERVALU Inc (NYSE:SVU)
Interest Coverage
0.00 (As of Feb. 2015)

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. SUPERVALU Inc's Operating Income for the three months ended in Feb. 2015 was $139 Mil. SUPERVALU Inc's Interest Expense for the three months ended in Feb. 2015 was $0 Mil. SUPERVALU Inc's interest coverage for the quarter that ended in Feb. 2015 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

SVU' s 10-Year Interest Coverage Range
Min: 1.03   Max: 5.19
Current: 1.74

1.03
5.19

During the past 13 years, the highest interest coverage of SUPERVALU Inc was 5.19. The lowest was 1.03. And the median was 2.72.

SVU's Interest Coverageis ranked lower than
96% of the 241 Companies
in the Global Grocery Stores industry.

( Industry Median: 22.80 vs. SVU: 1.74 )

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

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt is 0, then

The company had no debt.

SUPERVALU Inc's Interest Coverage for the fiscal year that ended in Feb. 2015 is calculated as

Here, for the fiscal year that ended in Feb. 2015, SUPERVALU Inc's Interest Expense was $-244 Mil. Its Operating Income was $424 Mil. And its Long-Term Debt was $2,693 Mil.

Interest Coverage=-1*Operating Income (A: Feb. 2015 )/Interest Expense (A: Feb. 2015 )
=-1*424/-244
=1.74

SUPERVALU Inc's Interest Coverage for the quarter that ended in Feb. 2015 is calculated as

Here, for the three months ended in Feb. 2015, SUPERVALU Inc's Interest Expense was $0 Mil. Its Operating Income was $139 Mil. And its Long-Term Debt was $2,693 Mil.

SUPERVALU 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.

SUPERVALU Inc Annual Data

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
interest_coverage 3.132.182.32At Loss2.09At LossAt LossAt Loss1.031.74

SUPERVALU Inc Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
interest_coverage At LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt Loss
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