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Caldwell Partners International Inc (TSX:CWL)
Interest Coverage
No Debt (As of May. 2016)

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. Caldwell Partners International Inc's Operating Income for the three months ended in May. 2016 was C$0.68 Mil. Caldwell Partners International Inc's Interest Expense for the three months ended in May. 2016 was C$0.00 Mil. Caldwell Partners International Inc has no debt. The higher the ratio, the stronger the company’s financial strength is.

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


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.


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

Caldwell Partners International Inc's Interest Coverage for the fiscal year that ended in Aug. 2015 is calculated as

Here, for the fiscal year that ended in Aug. 2015, Caldwell Partners International Inc's Interest Expense was C$0.00 Mil. Its Operating Income was C$2.18 Mil. And its Long-Term Debt was C$0.00 Mil.

Caldwell Partners International Inc had no debt.

Caldwell Partners International Inc's Interest Coverage for the quarter that ended in May. 2016 is calculated as

Here, for the three months ended in May. 2016, Caldwell Partners International Inc's Interest Expense was C$0.00 Mil. Its Operating Income was C$0.68 Mil. And its Long-Term Debt was C$0.00 Mil.

Caldwell Partners International 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.

Caldwell Partners International Inc Annual Data

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
interest_coverage No DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo Debt

Caldwell Partners International Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
interest_coverage No DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo Debt
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