Amaru (AMRU) Effective Interest Rate on Debt %: 6.93% (As of Dec. 2015)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Amaru Effective Interest Rate on Debt %?

Amaru AMRU Effective Interest Rate on Debt % is 6.93% as of Dec. 2015.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Amaru's annualized positive value of Interest Expense for the quarter that ended in Dec. 2015 was $0.10 Mil. Amaru's average total debt for the quarter that ended in Dec. 2015 was $1.50 Mil. Therefore, Amaru's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2015 was 6.93%.

Amaru  (OTCPK:AMRU) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Amaru Effective Interest Rate on Debt % Related Terms

Amaru Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Amaru's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Amaru Effective Interest Rate on Debt % Chart

Amaru Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.37 6.10 5.65 6.53 6.87

Amaru Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.67 6.67 6.93 6.93 6.93

AMRU vs TCHC, TGHI: Effective Interest Rate on Debt % Comparison

For the Entertainment subindustry, Amaru's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Amaru Effective Interest Rate on Debt % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Amaru's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Amaru's Effective Interest Rate on Debt % falls into.


Amaru Effective Interest Rate on Debt % Calculation

Amaru's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2015 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2014 )+Total Debt  (A: Dec. 2015 ))/ count )
=-1  *  -0.103/( (1.5+1.5)/ 2 )
=-1  *  -0.103/1.5
=6.87 %

where

Total Debt  (A: Dec. 2014 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 1.5
=1.5

Total Debt  (A: Dec. 2015 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 1.5
=1.5

Amaru's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2015 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Sep. 2015 )+Total Debt  (Q: Dec. 2015 ))/ count )
=-1  *  -0.104/( (1.5+1.5)/ 2 )
=-1  *  -0.104/1.5
=6.93 %

where

Total Debt  (Q: Sep. 2015 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 1.5
=1.5

Total Debt  (Q: Dec. 2015 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 1.5
=1.5

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Dec. 2015) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 6.93% mean?
Amaru (AMRU) has a Effective Interest Rate on Debt % of 6.93% as of Dec. 2015. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Amaru and its competitors.
Is Amaru's Effective Interest Rate on Debt % too high?
Amaru's current Effective Interest Rate on Debt % is 6.93%.
How does Amaru's Effective Interest Rate on Debt % compare to TCHC and TGHI?
Amaru's Effective Interest Rate on Debt % of 6.93% can be compared against companies in the Media - Diversified industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Media - Diversified company?
A good Effective Interest Rate on Debt % depends on the Media - Diversified industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Amaru and its competitors. Amaru's current Effective Interest Rate on Debt % is 6.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amaru stock overvalued right now?
Amaru (AMRU) has a current Effective Interest Rate on Debt % of 6.93%. The current Effective Interest Rate on Debt % is 6.93%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Amaru (AMRU), the current Effective Interest Rate on Debt % is 6.93% as of Dec. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Amaru Business Description

Address 1011 Hinterland Court, Oshawa, ON, CAN, L1K2M6
Amaru Inc is engaged in the media industry. The company, through its subsidiaries, is in the business of broadband entertainment-on-demand; streaming through computers, television sets, and personal digital assistants. Its business includes channel and program sponsorship, online subscriptions, channel/portal development (digital programming services), and content aggregation.