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American Community Newspapers (American Community Newspapers) Interest Coverage : 0.41 (As of Jun. 2008)


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What is American Community Newspapers 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. American Community Newspapers's Operating Income for the three months ended in Jun. 2008 was $1.39 Mil. American Community Newspapers's Interest Expense for the three months ended in Jun. 2008 was $-3.36 Mil. American Community Newspapers's interest coverage for the quarter that ended in Jun. 2008 was 0.41. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for American Community Newspapers's Interest Coverage or its related term are showing as below:


ACNI's Interest Coverage is not ranked *
in the Media - Diversified industry.
Industry Median: 11.54
* 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.


American Community Newspapers Interest Coverage Historical Data

The historical data trend for American Community Newspapers'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.

American Community Newspapers Interest Coverage Chart

American Community Newspapers Annual Data
Trend Dec05 Dec06 Dec07
Interest Coverage
No Debt No Debt N/A

American Community Newspapers Quarterly Data
Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only No Debt N/A N/A N/A 0.41

Competitive Comparison of American Community Newspapers's Interest Coverage

For the Publishing subindustry, American Community Newspapers'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.


American Community Newspapers's Interest Coverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, American Community Newspapers's Interest Coverage distribution charts can be found below:

* The bar in red indicates where American Community Newspapers's Interest Coverage falls into.



American Community Newspapers 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.

American Community Newspapers's Interest Coverage for the fiscal year that ended in Dec. 2007 is calculated as

Here, for the fiscal year that ended in Dec. 2007, American Community Newspapers's Interest Expense was $0.00 Mil. Its Operating Income was $1.22 Mil. And its Long-Term Debt & Capital Lease Obligation was $137.87 Mil.

GuruFocus does not calculate American Community Newspapers's interest coverage with the available data.

American Community Newspapers's Interest Coverage for the quarter that ended in Jun. 2008 is calculated as

Here, for the three months ended in Jun. 2008, American Community Newspapers's Interest Expense was $-3.36 Mil. Its Operating Income was $1.39 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2008 )/Interest Expense (Q: Jun. 2008 )
=-1*1.389/-3.363
=0.41

* 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.


American Community Newspapers  (OTCPK:ACNI) 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 .


American Community Newspapers Interest Coverage Related Terms

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


American Community Newspapers (American Community Newspapers) Business Description

Traded in Other Exchanges
N/A
Address
14875 Landmark Boulevard, Suite 110, Addison, TX, USA, 75254
American Community Newspapers Inc is a community newspaper publisher in the United States, operating within four major U.S. markets.
Executives
Rachesky Mark H Md 10 percent owner 40 WEST 57TH STREET, 24TH FLOOR, NEW YORK NY 10019
Mhr Fund Management Llc 10 percent owner 1345 AVENUE OF THE AMERICAS,, 42ND FLOOR, NEW YORK NY 10105
Mhr Advisors Llc 10 percent owner
Marilyn Rubenstein 10 percent owner
Woodland Services Corp 10 percent owner
Israel A Englander other: May be deemed as group member. C/O MILLENNIUM MANAGEMENT LLC, 399 PARK AVENUE, NEW YORK NY 10022
Millenco, L.l.c. 10 percent owner C/O MILLENNIUM MANAGEMENT LLC, 666 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10103
Millennium Management Llc other: May be deemed as group member. 399 PARK AVENUE, NEW YORK NY 10022
Barry Rubenstein 10 percent owner 68 WHEATLEY RD, BROOKVILLE NY 11545

American Community Newspapers (American Community Newspapers) Headlines

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