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Matrix Asset Management, Inc. (TSX:MTA)
Interest Coverage
0.00 (As of Sep. 2013)

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. Matrix Asset Management, Inc.'s Operating Income for the three months ended in Sep. 2013 was C$-3.82 Mil. Matrix Asset Management, Inc.'s Interest Expense for the three months ended in Sep. 2013 was C$-0.12 Mil. Matrix Asset Management, Inc.'s interest coverage for the quarter that ended in Sep. 2013 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

TSX:MTA' s 10-Year Interest Coverage Range
Min: 0   Max: 0
Current: 0

TSX:MTA's Interest Coverageis ranked lower than
113% of the 1004 Companies
in the Global Asset Management industry.

( Industry Median: 337.31 vs. TSX:MTA: 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

Matrix Asset Management, 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

Matrix Asset Management, Inc. had no debt.

Matrix Asset Management, Inc.'s Interest Coverage for the fiscal year that ended in Dec. 2012 is calculated as

Here, for the fiscal year that ended in Dec. 2012, Matrix Asset Management, Inc.'s Interest Expense was C$-1.24 Mil. Its Operating Income was C$-5.33 Mil. And its Long-Term Debt was C$6.85 Mil.

Matrix Asset Management, Inc. did not have earnings to cover the interest expense.

Matrix Asset Management, Inc.'s Interest Coverage for the quarter that ended in Sep. 2013 is calculated as

Here, for the three months ended in Sep. 2013, Matrix Asset Management, Inc.'s Interest Expense was C$-0.12 Mil. Its Operating Income was C$-3.82 Mil. And its Long-Term Debt was C$4.45 Mil.

Matrix Asset Management, Inc. did not have earnings to cover the interest expense.

* 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.

Matrix Asset Management, Inc. Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
interest_coverage No DebtNo DebtNo DebtNo DebtNo DebtNo DebtAt LossAt LossAt LossAt Loss

Matrix Asset Management, Inc. Quarterly Data

Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13
interest_coverage At LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt Loss
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