ADFS (American Defense Systems) Interest Coverage: No Debt (1) (As of Sep. 2012)


What is American Defense Systems Interest Coverage?

American Defense Systems ADFS Interest Coverage is No Debt (1) as of Sep. 2012.

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 Defense Systems's Operating Income for the three months ended in Sep. 2012 was $-0.07 Mil. American Defense Systems's Interest Expense for the three months ended in Sep. 2012 was $0.00 Mil. American Defense Systems has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) 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.

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


ADFS's Interest Coverage is not ranked *
in the Aerospace & Defense industry.
Industry Median: 8.69
* 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 Defense Systems  (OTCPK:ADFS) 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 Defense Systems Interest Coverage Related Terms

American Defense Systems Interest Coverage Historical Data

* Premium members only.

The historical data trend for American Defense Systems'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.

American Defense Systems Interest Coverage Chart

American Defense Systems Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11
Interest Coverage
Get a 7-Day Free Trial 89.21 0.00 0.00 0.00 0.00

American Defense Systems Quarterly Data
Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12
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 No Debt No Debt No Debt No Debt No Debt

ADFS vs ASDN, MKRS, PSSR: Interest Coverage Comparison

For the Aerospace & Defense subindustry, American Defense Systems'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 Defense Systems Interest Coverage vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, American Defense Systems's Interest Coverage distribution charts can be found below:

* The bar in red indicates where American Defense Systems's Interest Coverage falls into.


American Defense Systems 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 Defense Systems's Interest Coverage for the fiscal year that ended in Dec. 2011 is calculated as

Here, for the fiscal year that ended in Dec. 2011, American Defense Systems's Interest Expense was $-0.24 Mil. Its Operating Income was $-3.02 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

American Defense Systems did not have earnings to cover the interest expense.

American Defense Systems's Interest Coverage for the quarter that ended in Sep. 2012 is calculated as

Here, for the three months ended in Sep. 2012, American Defense Systems's Interest Expense was $0.00 Mil. Its Operating Income was $-0.07 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

American Defense Systems had no debt (1).

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of No Debt <sup>(1)</sup> mean?
American Defense Systems (ADFS) has a Interest Coverage of No Debt (1) as of Sep. 2012. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American Defense Systems and its competitors.
Is American Defense Systems' Interest Coverage too high?
American Defense Systems' current Interest Coverage is No Debt (1).
How does American Defense Systems' Interest Coverage compare to ASDN and MKRS?
American Defense Systems' Interest Coverage of No Debt (1) can be compared against companies in the Aerospace & Defense industry. The industry median Interest Coverage is 8.69. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.69, based on 241 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American Defense Systems and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Defense Systems's current Interest Coverage is No Debt (1). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Defense Systems stock overvalued right now?
American Defense Systems (ADFS) has a current Interest Coverage of No Debt (1). The current Interest Coverage is No Debt (1). Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For American Defense Systems (ADFS), the current Interest Coverage is No Debt (1) as of Sep. 2012. 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.

American Defense Systems Business Description

Address 3440 Toringdon way, suite 205, Room 218, Charlotte, NC, USA, 28277
American Defense Systems Inc is a defense and security products company engaged in three business areas: customized transparent and opaque armor solutions; architectural hardening and perimeter defense and tactical training products and services. It serves US government agencies, general contractors and other commercial and private entities operating in high-threat locations.