AEDC (American Energy Development) Interest Coverage: No Debt (1) (As of Sep. 2013)


What is American Energy Development Interest Coverage?

American Energy Development AEDC -99.95% Interest Coverage is No Debt (1) as of Sep. 2013.

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 Energy Development's Operating Income for the three months ended in Sep. 2013 was $-0.01 Mil. American Energy Development's Interest Expense for the three months ended in Sep. 2013 was $0.00 Mil. American Energy Development 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 Energy Development's Interest Coverage or its related term are showing as below:


AEDC's Interest Coverage is not ranked *
in the Oil & Gas industry.
Industry Median: 5.84
* 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 Energy Development  (OTCPK:AEDC) 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 Energy Development Interest Coverage Related Terms

American Energy Development Interest Coverage Historical Data

* Premium members only.

The historical data trend for American Energy Development'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 Energy Development Interest Coverage Chart

American Energy Development Annual Data
Trend Jun11 Jun12 Jun13
Interest Coverage
0.00 0.00 No Debt

American Energy Development Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
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 No Debt No Debt No Debt No Debt

AEDC vs BRZV, CWLXF, UNIGF: Interest Coverage Comparison

For the Oil & Gas E&P subindustry, American Energy Development'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 Energy Development Interest Coverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, American Energy Development's Interest Coverage distribution charts can be found below:

* The bar in red indicates where American Energy Development's Interest Coverage falls into.


American Energy Development 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 Energy Development's Interest Coverage for the fiscal year that ended in Jun. 2013 is calculated as

Here, for the fiscal year that ended in Jun. 2013, American Energy Development's Interest Expense was $0.00 Mil. Its Operating Income was $-0.28 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

American Energy Development had no debt (1).

American Energy Development's Interest Coverage for the quarter that ended in Sep. 2013 is calculated as

Here, for the three months ended in Sep. 2013, American Energy Development's Interest Expense was $0.00 Mil. Its Operating Income was $-0.01 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

American Energy Development 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 Energy Development (AEDC) has a Interest Coverage of No Debt (1) as of Sep. 2013. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American Energy Development and its competitors.
Is American Energy Development's Interest Coverage too high?
American Energy Development's current Interest Coverage is No Debt (1).
How does American Energy Development's Interest Coverage compare to BRZV and CWLXF?
American Energy Development's Interest Coverage of No Debt (1) can be compared against companies in the Oil & Gas industry. The industry median Interest Coverage is 5.84. 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 Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 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 Energy Development and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Energy Development'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 Energy Development stock overvalued right now?
American Energy Development (AEDC) 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 Energy Development (AEDC), the current Interest Coverage is No Debt (1) as of Sep. 2013. 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 Energy Development Business Description

Industry EnergyOil & Gas
Address 1230 Avenue of the Americas, 7th Floor, New York, NY, USA, 10020
American Energy Development Corp is an independent USA energy company. It intends to locate, drill, and produce oil and gas in the USA and secure regions. The company is focused on the development of Niagaran oil reefs in Michigan and the underexplored onshore basins in the UK.