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TAL Education Group (NYSE:XRS)
Interest Coverage
10,000.00 (As of Feb. 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. TAL Education Group's Operating Income for the three months ended in Feb. 2014 was $14.4 Mil. TAL Education Group's Interest Expense for the three months ended in Feb. 2014 was $0.0 Mil. TAL Education Group's interest coverage for the quarter that ended in Feb. 2014 was 10,000.00. The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

TAL Education Group has no debt.

XRS' s 10-Year Interest Coverage Range
Min: 210.77   Max: 9999.99
Current: No Debt

210.77
9999.99

During the past 6 years, the highest interest coverage of TAL Education Group was 9999.99. The lowest was 210.77. And the median was 5215.48.

XRS's Interest Coverageis ranked higher than
92% of the 76 Companies
in the Global Education & Training Services industry.

( Industry Median: 63.85 vs. XRS: No Debt )

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

TAL Education Group 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

TAL Education Group had no debt.

TAL Education Group's Interest Coverage for the fiscal year that ended in Feb. 2014 is calculated as

Here, for the fiscal year that ended in Feb. 2014, TAL Education Group's Interest Expense was $0.0 Mil. Its Operating Income was $57.4 Mil. And its Long-Term Debt was $0.0 Mil.

TAL Education Group had no debt.

TAL Education Group's Interest Coverage for the quarter that ended in Feb. 2014 is calculated as

Here, for the three months ended in Feb. 2014, TAL Education Group's Interest Expense was $0.0 Mil. Its Operating Income was $14.4 Mil. And its Long-Term Debt was $0.0 Mil.

TAL Education Group 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.

TAL Education Group Annual Data

Feb09Feb10Feb11Feb12Feb13Feb14
interest_coverage At LossAt LossAt LossAt Loss210.77375.85430.95No DebtNo DebtNo Debt

TAL Education Group Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13Aug13Nov13Feb14
interest_coverage No DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo Debt
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