XCOMQ (Xtera Communications) Effective Interest Rate on Debt %: 21.20% (As of Jun. 2016)

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What is Xtera Communications Effective Interest Rate on Debt %?

Xtera Communications XCOMQ -99.00% Effective Interest Rate on Debt % is 21.20% as of Jun. 2016.

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. Xtera Communications's annualized positive value of Interest Expense for the quarter that ended in Jun. 2016 was $2.86 Mil. Xtera Communications's average total debt for the quarter that ended in Jun. 2016 was $13.49 Mil. Therefore, Xtera Communications's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2016 was 21.20%.


Xtera Communications  (OTCPK:XCOMQ) Effective Interest Rate on Debt % Explanation

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


Xtera Communications Effective Interest Rate on Debt % Related Terms


Xtera Communications Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Xtera Communications'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.

Xtera Communications Effective Interest Rate on Debt % Chart

Xtera Communications Annual Data
Trend Sep13 Sep14 Sep15
Effective Interest Rate on Debt %
8.69 12.11 14.49

Xtera Communications Quarterly Data
Sep13 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only 60.80 33.98 13.42 10.91 21.20

XCOMQ vs TAIT, AEY: Effective Interest Rate on Debt % Comparison

For the Communication Equipment subindustry, Xtera Communications'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.


Xtera Communications Effective Interest Rate on Debt % vs Hardware Industry

For the Hardware industry and Technology sector, Xtera Communications's Effective Interest Rate on Debt % distribution charts can be found below:

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



Xtera Communications Effective Interest Rate on Debt % Calculation

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

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Sep. 2014 )+Total Debt  (A: Sep. 2015 ))/ count )
=-1  *  -3.8/( (39.611+12.84)/ 2 )
=-1  *  -3.8/26.2255
=14.49 %

where

Total Debt  (A: Sep. 2014 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=6.129 + 33.482
=39.611

Total Debt  (A: Sep. 2015 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2.133 + 10.707
=12.84

Xtera Communications's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2016 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Mar. 2016 )+Total Debt  (Q: Jun. 2016 ))/ count )
=-1  *  -2.86/( (14.878+12.103)/ 2 )
=-1  *  -2.86/13.4905
=21.20 %

where

Total Debt  (Q: Mar. 2016 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 14.878
=14.878

Total Debt  (Q: Jun. 2016 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 12.103
=12.103

* 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. 2016) 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 21.20% mean?
Xtera Communications (XCOMQ) has a Effective Interest Rate on Debt % of 21.20% as of Jun. 2016. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Xtera Communications and its competitors.
Is Xtera Communications' Effective Interest Rate on Debt % too high?
Xtera Communications' current Effective Interest Rate on Debt % is 21.20%.
How does Xtera Communications' Effective Interest Rate on Debt % compare to TAIT and AEY?
Xtera Communications' Effective Interest Rate on Debt % of 21.20% can be compared against companies in the Hardware 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 Hardware company?
A good Effective Interest Rate on Debt % depends on the Hardware 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 Xtera Communications and its competitors. Xtera Communications's current Effective Interest Rate on Debt % is 21.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xtera Communications stock overvalued right now?
Xtera Communications (XCOMQ) has a current Effective Interest Rate on Debt % of 21.20%. The current Effective Interest Rate on Debt % is 21.20%. 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 Xtera Communications (XCOMQ), the current Effective Interest Rate on Debt % is 21.20% as of Jun. 2016. 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.

Xtera Communications Business Description

Address 500 West Bethany Drive, Suite 100, Allen, TX, USA, 75013
Xtera Communications Inc is a provider of optical transport solutions. It sells its optical transport solutions to telecommunications service providers, content service providers, enterprises and government entities across the world to support their deployments of long-haul terrestrial and submarine optical cable networks. Its optical networking solutions are designed to offer reach and capacity for intermediate sites between end-points of long-haul networks. Its primary service offerings include services, installation and deployment services, on-site hardware replacement services, system maintenance services, extended hardware warranty services and training across a spectrum of products within the optical networking industry. The company offers hardware, software and turnkey solutions.