EDMCQ (Education Management) Effective Interest Rate on Debt %: 9.61% (As of Jun. 2014)

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What is Education Management Effective Interest Rate on Debt %?

Education Management EDMCQ -99.00% Effective Interest Rate on Debt % is 9.61% as of Jun. 2014.

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. Education Management's annualized positive value of Interest Expense for the quarter that ended in Jun. 2014 was $134 Mil. Education Management's average total debt for the quarter that ended in Jun. 2014 was $1,394 Mil. Therefore, Education Management's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2014 was 9.61%.


Education Management  (OTCPK:EDMCQ) Effective Interest Rate on Debt % Explanation

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


Education Management Effective Interest Rate on Debt % Related Terms


Education Management Effective Interest Rate on Debt % Historical Data

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The historical data trend for Education Management'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.

Education Management Effective Interest Rate on Debt % Chart

Education Management Annual Data
Trend Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.09 7.80 7.04 8.49 8.94

Education Management Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 9.56 9.64 9.84 9.68 9.61

EDMCQ vs ZVO: Effective Interest Rate on Debt % Comparison

For the Education & Training Services subindustry, Education Management'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.


Education Management Effective Interest Rate on Debt % vs Education Industry

For the Education industry and Consumer Defensive sector, Education Management's Effective Interest Rate on Debt % distribution charts can be found below:

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



Education Management Effective Interest Rate on Debt % Calculation

Education Management's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Jun. 2014 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Jun. 2013 )+Total Debt  (A: Jun. 2014 ))/ count )
=-1  *  -128.033/( (1360.24+1503.351)/ 2 )
=-1  *  -128.033/1431.7955
=8.94 %

where

Total Debt  (A: Jun. 2013 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1273.164 + 87.076
=1360.24

Total Debt  (A: Jun. 2014 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1271.586 + 231.765
=1503.351

Education Management's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2014 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Mar. 2014 )+Total Debt  (Q: Jun. 2014 ))/ count )
=-1  *  -133.904/( (1283.861+1503.351)/ 2 )
=-1  *  -133.904/1393.606
=9.61 %

where

Total Debt  (Q: Mar. 2014 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1271.986 + 11.875
=1283.861

Total Debt  (Q: Jun. 2014 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1271.586 + 231.765
=1503.351

* 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 (Jun. 2014) 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 9.61% mean?
Education Management (EDMCQ) has a Effective Interest Rate on Debt % of 9.61% as of Jun. 2014. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Education Management and its competitors.
Is Education Management's Effective Interest Rate on Debt % too high?
Education Management's current Effective Interest Rate on Debt % is 9.61%.
How does Education Management's Effective Interest Rate on Debt % compare to ZVO?
Education Management's Effective Interest Rate on Debt % of 9.61% can be compared against companies in the Education 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 an Education company?
A good Effective Interest Rate on Debt % depends on the Education 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 Education Management and its competitors. Education Management's current Effective Interest Rate on Debt % is 9.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Education Management stock overvalued right now?
Education Management (EDMCQ) has a current Effective Interest Rate on Debt % of 9.61%. The current Effective Interest Rate on Debt % is 9.61%. 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 Education Management (EDMCQ), the current Effective Interest Rate on Debt % is 9.61% as of Jun. 2014. 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.

Education Management Business Description

Address 210 Sixth Avenue, 33rd Floor, Pittsburgh, PA, USA, 15222
Education Management Corp provides post-secondary education in North America. It offers academic programs to students through campus-based and online instruction, or through a combination of both. The company operates in four segments including The Art Institutes; Argosy University; Brown Mackie Colleges and South University. The Art Institutes focus on applied arts in creative professions such as graphic design, media arts, and animation, culinary arts. Brown Mackie Colleges offer flexible Associate's and non-degree diploma programs that enable students to develop skills for entry-level positions in high-demand vocational specialties. South University offers academic programs in health profession and business disciplines, health sciences, nursing, criminal justice, psychology, and IT.