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WSP Holdings Limited (NYSE:WH)
Interest Coverage
0.00 (As of Mar. 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. WSP Holdings Limited's Operating Income for the three months ended in Mar. 2013 was $-19.1 Mil. WSP Holdings Limited's Interest Expense for the three months ended in Mar. 2013 was $-9.6 Mil. WSP Holdings Limited's interest coverage for the quarter that ended in Mar. 2013 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

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

WH's Interest Coverageis ranked lower than
79% of the 309 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 12.54 vs. WH: 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

WSP Holdings Limited 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

WSP Holdings Limited had no debt.

WSP Holdings Limited'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, WSP Holdings Limited's Interest Expense was $-43.3 Mil. Its Operating Income was $-62.2 Mil. And its Long-Term Debt was $15.9 Mil.

WSP Holdings Limited did not have earnings to cover the interest expense.

WSP Holdings Limited's Interest Coverage for the quarter that ended in Mar. 2013 is calculated as

Here, for the three months ended in Mar. 2013, WSP Holdings Limited's Interest Expense was $-9.6 Mil. Its Operating Income was $-19.1 Mil. And its Long-Term Debt was $0.0 Mil.

WSP Holdings Limited 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.

WSP Holdings Limited Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
interest_coverage At LossNo Debt14.3627.058.216.370.87At LossAt LossAt Loss

WSP Holdings Limited Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
interest_coverage At LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt LossAt Loss
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