Alternative Energy (LSE:ALR) Effective Interest Rate on Debt %: 14.68% (As of Jun. 2014)

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 Alternative Energy Effective Interest Rate on Debt %?

Alternative Energy LSE:ALR Effective Interest Rate on Debt % is 14.68% as of Jun. 2014. The stock has 4 warning signs investors should review.

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. Alternative Energy's annualized positive value of Interest Expense for the quarter that ended in Jun. 2014 was £0.35 Mil. Alternative Energy's average total debt for the quarter that ended in Jun. 2014 was £2.36 Mil. Therefore, Alternative Energy's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2014 was 14.68%.

Alternative Energy  (LSE:ALR) Effective Interest Rate on Debt % Explanation

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

Alternative Energy Effective Interest Rate on Debt % Related Terms

Alternative Energy Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Alternative Energy'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.

Alternative Energy Effective Interest Rate on Debt % Chart

Alternative Energy Annual Data
Trend Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Dec13
Effective Interest Rate on Debt %
Get a 7-Day Free Trial 0.00 0.00 0.00 0.11 4.22

Alternative Energy Semi-Annual Data
Feb10 Aug10 Feb11 Aug11 Feb12 Aug12 Jun13 Dec13 Jun14
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only 0.11 0.19 0.00 7.95 14.68

Alternative Energy Effective Interest Rate on Debt % Competitor Comparison

For the Utilities - Independent Power Producers subindustry, Alternative Energy'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.

Alternative Energy Effective Interest Rate on Debt % vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Alternative Energy's Effective Interest Rate on Debt % distribution charts can be found below:

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


Alternative Energy Effective Interest Rate on Debt % Calculation

Alternative Energy's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2013 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Aug. 2012 )+Total Debt  (A: Dec. 2013 ))/ count )
=-1  *  -0.095/( (2.124+2.383)/ 2 )
=-1  *  -0.095/2.2535
=4.22 %

where

Total Debt  (A: Aug. 2012 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 2.124
=2.124

Total Debt  (A: Dec. 2013 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 2.383
=2.383

Alternative Energy'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: Dec. 2013 )+Total Debt  (Q: Jun. 2014 ))/ count )
=-1  *  -0.346/( (2.383+2.332)/ 2 )
=-1  *  -0.346/2.3575
=14.68 %

where

Total Debt  (Q: Dec. 2013 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 2.383
=2.383

Total Debt  (Q: Jun. 2014 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 2.332
=2.332

* 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 two times the semi-annual (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 14.68% mean?
Alternative Energy (LSE:ALR) has a Effective Interest Rate on Debt % of 14.68% as of Jun. 2014. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Alternative Energy and its competitors.
Is Alternative Energy's Effective Interest Rate on Debt % too high?
Alternative Energy's current Effective Interest Rate on Debt % is 14.68%.
How does Alternative Energy's Effective Interest Rate on Debt % compare to competitors?
Alternative Energy's Effective Interest Rate on Debt % of 14.68% can be compared against companies in the Utilities - Independent Power Producers 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 Utilities - Independent Power Producers company?
A good Effective Interest Rate on Debt % depends on the Utilities - Independent Power Producers 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 Alternative Energy and its competitors. Alternative Energy's current Effective Interest Rate on Debt % is 14.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alternative Energy stock overvalued right now?
Alternative Energy (LSE:ALR) has a current Effective Interest Rate on Debt % of 14.68%. The current Effective Interest Rate on Debt % is 14.68%. 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 Alternative Energy (LSE:ALR), the current Effective Interest Rate on Debt % is 14.68% 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.

Alternative Energy Business Description

Alternative Energy Ltd provides technology, hardware and equipment for renewable energy and green energy solutions. Its solutions include Renewable Energy, The E-Roof - The PC of Energy, and AEL Energy Saving products such as eLIVE and eLUMEN. It also makes acquisitions to develop energy technologies, business and companies which offer an alternative to conventional fossil fuel and nuclear methods of generating household and industrial energy, as well as providing management services to its subsidiaries.