AOREF (American Overseas Group) Interest Coverage: 0 (At Loss) (As of Jun. 2009)


What is American Overseas Group Interest Coverage?

American Overseas Group AOREF Interest Coverage is 0 (At Loss) as of Jun. 2009.

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 EBIT by its Interest Expense. American Overseas Group's EBIT for the three months ended in Jun. 2009 was $0.00 Mil. American Overseas Group's Interest Expense for the three months ended in Jun. 2009 was $-0.62 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 American Overseas Group's Interest Coverage or its related term are showing as below:


AOREF's Interest Coverage is not ranked *
in the Insurance industry.
Industry Median: 16.23
* 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 Overseas Group  (OTCPK:AOREF) 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 Overseas Group Interest Coverage Related Terms

American Overseas Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for American Overseas Group'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 Overseas Group Interest Coverage Chart

American Overseas Group Annual Data
Trend Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08
Interest Coverage
Get a 7-Day Free Trial 0.00 0.00 0.00 0.00 0.00

American Overseas Group Quarterly Data
Dec03 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09
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 0.00 0.00 0.00 0.00 0.00

AOREF vs OXBR, BCRH, MHLD: Interest Coverage Comparison

For the Insurance - Reinsurance subindustry, American Overseas Group'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 Overseas Group Interest Coverage vs Insurance Industry

For the Insurance industry and Financial Services sector, American Overseas Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where American Overseas Group's Interest Coverage falls into.


American Overseas Group 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 EBIT is positive, then

Interest Coverage=-1* EBIT /Interest Expense

Else if Interest Expense is negative and EBIT 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 Overseas Group's Interest Coverage for the fiscal year that ended in Dec. 2008 is calculated as

Here, for the fiscal year that ended in Dec. 2008, American Overseas Group's Interest Expense was $-8.38 Mil. Its EBIT was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $40.00 Mil.

American Overseas Group's Interest Coverage for the quarter that ended in Jun. 2009 is calculated as

Here, for the three months ended in Jun. 2009, American Overseas Group's Interest Expense was $-0.62 Mil. Its EBIT was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $35.00 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 0 (At Loss) mean?
American Overseas Group (AOREF) has a Interest Coverage of 0 (At Loss) as of Jun. 2009. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American Overseas Group and its competitors.
Is American Overseas Group's Interest Coverage too high?
American Overseas Group's current Interest Coverage is 0 (At Loss).
How does American Overseas Group's Interest Coverage compare to OXBR and BCRH?
American Overseas Group's Interest Coverage of 0 (At Loss) can be compared against companies in the Insurance industry. The industry median Interest Coverage is 16.23. 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 Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 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 Overseas Group and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Overseas Group's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Overseas Group stock overvalued right now?
American Overseas Group (AOREF) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). 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 Overseas Group (AOREF), the current Interest Coverage is 0 (At Loss) as of Jun. 2009. 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 Overseas Group Business Description

Address Cumberland House 6th Floor 1 Victoria Street, Hamilton, BMU, HM 11
American Overseas Group Ltd is a provider of insurance services. Its business consists of U.S.-based property and casualty insurance companies that provide non-standard auto insurance through specialty managing general agents; A Barbados domiciled affiliate reinsurance company that assumes and reinsures a small portion of the U.S. sourced nonstandard auto business; and U.S based management services company. The company is organized into two operating segments: property/casualty insurance/reinsurance and corporate/other.