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

American Defense Systems Interest Coverage Chart

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															No Debt	No Debt	No Debt	No Debt	No Debt

Competitive Comparison of American Defense Systems's Interest Coverage

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's Interest Coverage Distribution in the 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

Else if Interest Expense is negative and Operating Income is negative, then

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

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'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.

* 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 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

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American Defense Systems (American Defense Systems) Business Description