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Arctic Cat (Arctic Cat) Interest Coverage : 0 (At Loss) (As of Dec. 2016)


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What is Arctic Cat Interest Coverage?

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 by its Interest Expense. Arctic Cat's Operating Income for the three months ended in Dec. 2016 was $-20.5 Mil. Arctic Cat's Interest Expense for the three months ended in Dec. 2016 was $-0.5 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Arctic Cat's Interest Coverage or its related term are showing as below:


ACAT's Interest Coverage is not ranked *
in the Vehicles & Parts industry.
Industry Median: 7.77
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Arctic Cat Interest Coverage Historical Data

The historical data trend for Arctic Cat's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Arctic Cat Interest Coverage Chart

Arctic Cat Annual Data
Trend Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5,736.25 722.79 495.87 18.52 -

Arctic Cat Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
Interest Coverage 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 - - - - -

Competitive Comparison of Arctic Cat's Interest Coverage

For the Recreational Vehicles subindustry, Arctic Cat's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.


Arctic Cat's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Arctic Cat's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Arctic Cat's Interest Coverage falls into.



Arctic Cat Interest Coverage Calculation

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

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Arctic Cat's Interest Coverage for the fiscal year that ended in Mar. 2016 is calculated as

Here, for the fiscal year that ended in Mar. 2016, Arctic Cat's Interest Expense was $-0.8 Mil. Its Operating Income was $-16.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Arctic Cat did not have earnings to cover the interest expense.

Arctic Cat's Interest Coverage for the quarter that ended in Dec. 2016 is calculated as

Here, for the three months ended in Dec. 2016, Arctic Cat's Interest Expense was $-0.5 Mil. Its Operating Income was $-20.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $79.1 Mil.

Arctic Cat did not have earnings to cover the interest expense.

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Arctic Cat  (NAS:ACAT) Interest Coverage 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 .


Arctic Cat Interest Coverage Related Terms

Thank you for viewing the detailed overview of Arctic Cat's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Arctic Cat (Arctic Cat) Business Description

Traded in Other Exchanges
N/A
Address
Arctic Cat designs, engineers, manufactures, and markets snowmobiles, all-terrain vehicles, and utility task vehicles, or "side-by-sides," under the Arctic Cat brand name, as well as related parts, garments, and accessories under the Arctic Cat and MotorFist brands. The company markets its products through a network of independent dealers throughout the contiguous United States and Canada and through distributors representing dealers in Alaska, Europe, the Middle East, Asia, and other international markets.
Executives
Andrew S Duff director 800 NICOLLET MALL, MINNEAPOLIS MN 55402
Joseph F. Puishys director 4400 WEST 78TH STREET, SUITE 520, MINNEAPOLIS MN 55435
Christopher T Metz director, officer: President and CEO BLACK & DECKER CORP, 701 EAST JOPPA ROAD, TOWSON MD 21286
Susan E Lester director PACWEST BANCORP, 9701 WILSHIRE BOULEVARD, SUITE 700, BEVERLY HILLS CA 90212
Tony Christianson director
Christopher J Eperjesy officer: Chief Financial Officer 505 HIGHWAY 169 NORTH, PLYMOUTH MN 55441
Patricia L Jones officer: Chief Human Resources Officer C/O 505 HIGHWAY 169 NORTH, SUITE 1000, PLYMOUTH MN 55441
D Christian Koch director P.O. BOX 1441, MINNEAPOLIS MN 55440-1441
Christopher A Twomey director ARCTIC CAT, 505 HIGHWAY 169 NORTH, SUITE 1000, PLYMOUTH MN 55441
Stanley A Askren director 408 EAST SECOND STREET, MUSCATINE IA 52761
Gregg A Ostrander director 4600 SLEEPYTIME DRIVE, BOULDER CO 80301
David A Roberts director 3013 KINGS MANOR DRIVE, WEDDINGTON NC 21104-6868

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