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Vitesse Semiconductor Corp (NAS:VTSS)
Interest Coverage
0.00 (As of Jun. 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. Vitesse Semiconductor Corp's Operating Income for the three months ended in Jun. 2014 was $-2.5 Mil. Vitesse Semiconductor Corp's Interest Expense for the three months ended in Jun. 2014 was $0.0 Mil. Vitesse Semiconductor Corp's interest coverage for the quarter that ended in Jun. 2014 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

VTSS' s 10-Year Interest Coverage Range
Min: 0.43   Max: 9999.99
Current: 0

0.43
9999.99

During the past 13 years, the highest interest coverage of Vitesse Semiconductor Corp was 9999.99. The lowest was 0.43. And the median was 9.78.

VTSS's Interest Coverageis ranked lower than
130% of the 599 Companies
in the Global Semiconductors industry.

( Industry Median: 767.50 vs. VTSS: 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

Vitesse Semiconductor Corp 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

Vitesse Semiconductor Corp had no debt.

Vitesse Semiconductor Corp's Interest Coverage for the fiscal year that ended in Sep. 2013 is calculated as

Here, for the fiscal year that ended in Sep. 2013, Vitesse Semiconductor Corp's Interest Expense was $0.0 Mil. Its Operating Income was $-15.5 Mil. And its Long-Term Debt was $60.8 Mil.

Vitesse Semiconductor Corp had no debt.

Vitesse Semiconductor Corp's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the three months ended in Jun. 2014, Vitesse Semiconductor Corp's Interest Expense was $0.0 Mil. Its Operating Income was $-2.5 Mil. And its Long-Term Debt was $16.3 Mil.

Vitesse Semiconductor Corp 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.

Vitesse Semiconductor Corp Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
interest_coverage At LossAt LossAt LossAt LossAt LossAt Loss0.43At LossAt LossAt Loss

Vitesse Semiconductor Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
interest_coverage 0.57At LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt Loss
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