Arafura Pearls Holdings Limited (ASX:APB) Interest Coverage : 0 (At Loss) (As of . 20)

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What is Arafura Pearls Holdings Limited Interest Coverage?

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. Arafura Pearls Holdings Limited's Operating Income for the six months ended in . 20 was A$0.00 Mil. Arafura Pearls Holdings Limited's Interest Expense for the six months ended in . 20 was A$0.00 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 Arafura Pearls Holdings Limited's Interest Coverage or its related term are showing as below:

ASX:APB's Interest Coverage is not ranked ^*
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 4.975
* 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.

Arafura Pearls Holdings Limited Interest Coverage Historical Data

The historical data trend for Arafura Pearls Holdings Limited'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.

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Arafura Pearls Holdings Limited Interest Coverage Chart

Arafura Pearls Holdings Limited Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Interest Coverage

N/A

Arafura Pearls Holdings Limited Semi-Annual Data

Interest Coverage

Competitive Comparison of Arafura Pearls Holdings Limited's Interest Coverage

For the Apparel Manufacturing subindustry, Arafura Pearls Holdings Limited'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.

Arafura Pearls Holdings Limited's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Arafura Pearls Holdings Limited's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Arafura Pearls Holdings Limited's Interest Coverage falls into.

Arafura Pearls Holdings Limited 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.

Arafura Pearls Holdings Limited's Interest Coverage for the fiscal year that ended in Jun. 2010 is calculated as

Here, for the fiscal year that ended in Jun. 2010, Arafura Pearls Holdings Limited's Interest Expense was A$-1.45 Mil. Its Operating Income was A$-37.89 Mil. And its Long-Term Debt & Capital Lease Obligation was A$2.23 Mil.

Arafura Pearls Holdings Limited did not have earnings to cover the interest expense.

Arafura Pearls Holdings Limited's Interest Coverage for the quarter that ended in . 20 is calculated as

Here, for the six months ended in . 20, Arafura Pearls Holdings Limited's Interest Expense was A$0.00 Mil. Its Operating Income was A$0.00 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.00 Mil.

Arafura Pearls Holdings Limited had no debt ⁽¹⁾.

The higher the ratio, the stronger the company's Financial Strength is.

Arafura Pearls Holdings Limited (ASX:APB) 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 .

Arafura Pearls Holdings Limited Interest Coverage Related Terms

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