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Goodman Co., (TSE:7535) Interest Coverage : 0.06 (As of Sep. 2012)


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What is Goodman Co., 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. Goodman Co.,'s Operating Income for the three months ended in Sep. 2012 was 円5 Mil. Goodman Co.,'s Interest Expense for the three months ended in Sep. 2012 was 円-81 Mil. Goodman Co.,'s interest coverage for the quarter that ended in Sep. 2012 was 0.06. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Goodman Co.,'s Interest Coverage or its related term are showing as below:

TSE:7535' s Interest Coverage Range Over the Past 10 Years
Min: 0   Med: 0   Max: 1.22
Current: 0.42


TSE:7535's Interest Coverage is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 18.935 vs TSE:7535: 0.42

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


Goodman Co., Interest Coverage Historical Data

The historical data trend for Goodman Co.,'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.

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Goodman Co., Interest Coverage Chart

Goodman Co., Annual Data
Trend Jun09 Jun10 Jun11 Mar12 Mar13
Interest Coverage
2.16 1.55 2.67 2.54 -

Goodman Co., Quarterly Data
Jun10 Mar11 Jun11 Sep11 Dec11 Jun12 Sep12
Interest Coverage Get a 7-Day Free Trial 2.35 3.24 1.63 - 0.06

Competitive Comparison of Goodman Co.,'s Interest Coverage

For the Medical Devices subindustry, Goodman Co.,'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.


Goodman Co.,'s Interest Coverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Goodman Co.,'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where Goodman Co.,'s Interest Coverage falls into.



Goodman Co., 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.

Goodman Co.,'s Interest Coverage for the fiscal year that ended in Mar. 2013 is calculated as

Here, for the fiscal year that ended in Mar. 2013, Goodman Co.,'s Interest Expense was 円-304 Mil. Its Operating Income was 円-720 Mil. And its Long-Term Debt & Capital Lease Obligation was 円8,314 Mil.

Goodman Co., did not have earnings to cover the interest expense.

Goodman Co.,'s Interest Coverage for the quarter that ended in Sep. 2012 is calculated as

Here, for the three months ended in Sep. 2012, Goodman Co.,'s Interest Expense was 円-81 Mil. Its Operating Income was 円5 Mil. And its Long-Term Debt & Capital Lease Obligation was 円10,787 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2012 )/Interest Expense (Q: Sep. 2012 )
=-1*5.185/-81.312
=0.06

* 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.


Goodman Co.,  (TSE:7535) 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 .


Goodman Co., Interest Coverage Related Terms

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Goodman Co., (TSE:7535) Business Description

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