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Westinghouse Air Brake Technologies Corp (NYSE:WAB)
Interest Coverage
0.00 (As of Mar. 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. Westinghouse Air Brake Technologies Corp's Operating Income for the three months ended in Mar. 2014 was $122 Mil. Westinghouse Air Brake Technologies Corp's Interest Expense for the three months ended in Mar. 2014 was $0 Mil. Westinghouse Air Brake Technologies Corp's interest coverage for the quarter that ended in Mar. 2014 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

WAB' s 10-Year Interest Coverage Range
Min: 1.61   Max: 59.78
Current: 0

1.61
59.78

During the past 13 years, the highest interest coverage of Westinghouse Air Brake Technologies Corp was 59.78. The lowest was 1.61. And the median was 3.33.

WAB's Interest Coverageis ranked lower than
113% of the 569 Companies
in the Global Railroads industry.

( Industry Median: 5.13 vs. WAB: 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

Westinghouse Air Brake Technologies 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

Westinghouse Air Brake Technologies Corp had no debt.

Westinghouse Air Brake Technologies Corp's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, Westinghouse Air Brake Technologies Corp's Interest Expense was $0 Mil. Its Operating Income was $437 Mil. And its Long-Term Debt was $450 Mil.

Westinghouse Air Brake Technologies Corp had no debt.

Westinghouse Air Brake Technologies Corp's Interest Coverage for the quarter that ended in Mar. 2014 is calculated as

Here, for the three months ended in Mar. 2014, Westinghouse Air Brake Technologies Corp's Interest Expense was $0 Mil. Its Operating Income was $122 Mil. And its Long-Term Debt was $450 Mil.

Westinghouse Air Brake Technologies 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.

Westinghouse Air Brake Technologies Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
interest_coverage 4.8111.6659.78At LossAt LossAt LossAt LossAt LossAt LossAt Loss

Westinghouse Air Brake Technologies Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
interest_coverage At Loss25.2728.74At LossAt LossAt Loss34.41At LossAt LossAt Loss
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