ARHN (Archon) Interest Coverage: 0 (At Loss) (As of Dec. 2010)


What is Archon Interest Coverage?

Archon ARHN Interest Coverage is 0 (At Loss) as of Dec. 2010.

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. Archon's Operating Income for the three months ended in Dec. 2010 was $-0.10 Mil. Archon's Interest Expense for the three months ended in Dec. 2010 was $-1.03 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 Archon's Interest Coverage or its related term are showing as below:


ARHN's Interest Coverage is not ranked *
in the Travel & Leisure industry.
Industry Median: 5.35
* 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.

Archon  (OTCPK:ARHN) 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 .

Archon Interest Coverage Related Terms

Archon Interest Coverage Historical Data

* Premium members only.

The historical data trend for Archon'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.

Archon Interest Coverage Chart

Archon Annual Data
Trend Sep01 Sep02 Sep03 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A N/A 0.04 0.71 0.00

Archon Quarterly Data
Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10
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 0.02 0.48 0.00 0.00 0.00

ARHN vs FLL, UWN: Interest Coverage Comparison

For the Resorts & Casinos subindustry, Archon'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.

Archon Interest Coverage vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Archon's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Archon's Interest Coverage falls into.


Archon 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.

Archon's Interest Coverage for the fiscal year that ended in Sep. 2010 is calculated as

Here, for the fiscal year that ended in Sep. 2010, Archon's Interest Expense was $-4.40 Mil. Its Operating Income was $-0.06 Mil. And its Long-Term Debt & Capital Lease Obligation was $64.74 Mil.

Archon did not have earnings to cover the interest expense.

Archon's Interest Coverage for the quarter that ended in Dec. 2010 is calculated as

Here, for the three months ended in Dec. 2010, Archon's Interest Expense was $-1.03 Mil. Its Operating Income was $-0.10 Mil. And its Long-Term Debt & Capital Lease Obligation was $31.20 Mil.

Archon did not have earnings to cover the interest expense.

* 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?
Archon (ARHN) has a Interest Coverage of 0 (At Loss) as of Dec. 2010. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Archon and its competitors.
Is Archon's Interest Coverage too high?
Archon's current Interest Coverage is 0 (At Loss).
How does Archon's Interest Coverage compare to FLL and UWN?
Archon's Interest Coverage of 0 (At Loss) can be compared against companies in the Travel & Leisure industry. The industry median Interest Coverage is 5.35. 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 a Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 611 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 Archon and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Archon'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 Archon stock overvalued right now?
Archon (ARHN) 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 Archon (ARHN), the current Interest Coverage is 0 (At Loss) as of Dec. 2010. 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.

Archon Business Description

Address 2200 Casino Drive, Laughlin, NV, USA, 89029
Archon Corp is a United States based company focused on operating the Pioneer Hotel & Gambling Hall in Laughlin through its wholly-owned subsidiary. It is engaged in operating hotel and casino activities. In addition, the company also owns real estates and investment properties.