Continental Coal (ASX:CCC) Interest Coverage: 0 (At Loss) (As of Jun. 2014)


What is Continental Coal Interest Coverage?

Continental Coal ASX:CCC Interest Coverage is 0 (At Loss) as of Jun. 2014. The stock has 4 warning signs investors should review.

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. Continental Coal's Operating Income for the six months ended in Jun. 2014 was A$-7.95 Mil. Continental Coal's Interest Expense for the six months ended in Jun. 2014 was A$-1.40 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 Continental Coal's Interest Coverage or its related term are showing as below:


ASX:CCC's Interest Coverage is not ranked *
in the Steel industry.
Industry Median: 4.445
* 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.

Continental Coal  (ASX:CCC) 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 .

Continental Coal Interest Coverage Related Terms

Continental Coal Interest Coverage Historical Data

* Premium members only.

The historical data trend for Continental Coal'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.

Continental Coal Interest Coverage Chart

Continental Coal Annual Data
Trend Jun11 Jun12 Jun13 Jun14
Interest Coverage
0.00 0.00 0.00 0.00

Continental Coal Semi-Annual Data
Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14
Interest Coverage Get a 7-Day Free Trial 0.00 0.00 0.00 0.00 0.00

Continental Coal Interest Coverage Competitor Comparison

For the Coking Coal subindustry, Continental Coal'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.

Continental Coal Interest Coverage vs Steel Industry

For the Steel industry and Basic Materials sector, Continental Coal's Interest Coverage distribution charts can be found below:

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


Continental Coal 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.

Continental Coal's Interest Coverage for the fiscal year that ended in Jun. 2014 is calculated as

Here, for the fiscal year that ended in Jun. 2014, Continental Coal's Interest Expense was A$-15.05 Mil. Its Operating Income was A$-8.93 Mil. And its Long-Term Debt & Capital Lease Obligation was A$22.79 Mil.

Continental Coal did not have earnings to cover the interest expense.

Continental Coal's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the six months ended in Jun. 2014, Continental Coal's Interest Expense was A$-1.40 Mil. Its Operating Income was A$-7.95 Mil. And its Long-Term Debt & Capital Lease Obligation was A$22.79 Mil.

Continental Coal 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?
Continental Coal (ASX:CCC) has a Interest Coverage of 0 (At Loss) as of Jun. 2014. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Continental Coal and its competitors.
Is Continental Coal's Interest Coverage too high?
Continental Coal's current Interest Coverage is 0 (At Loss).
How does Continental Coal's Interest Coverage compare to competitors?
Continental Coal's Interest Coverage of 0 (At Loss) can be compared against companies in the Steel industry. The industry median Interest Coverage is 4.45. 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 Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 458 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 Continental Coal and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Continental Coal'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 Continental Coal stock overvalued right now?
Continental Coal (ASX:CCC) 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 Continental Coal (ASX:CCC), the current Interest Coverage is 0 (At Loss) as of Jun. 2014. 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.

Continental Coal Business Description

Address 9th Floor, Fredman Towers, 13 Fredman Drive, Sandton, ZAF, 2196
Continental Coal Ltd is a coal exploration and development company. It is engaged in producing, development and exploration of coal in its projects located in South Africa's coal fields. Its three main operating mines are Vlakvarkfontein, Ferreira and Penumbra mine. Its development projects include De Wittekrans development project; and exploration projects, such as Vaalbank, Leiden and Knapdaar in South Africa, as well as Kweneng and Serowe exploration projects in Botswana.