Frankland River Olive Co (ASX:FLR) Interest Coverage: 0.10 (As of Dec. 2015)


What is Frankland River Olive Co Interest Coverage?

Frankland River Olive Co ASX:FLR Interest Coverage is 0.10 as of Dec. 2015. The stock has 8 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. Frankland River Olive Co's Operating Income for the six months ended in Dec. 2015 was A$0.04 Mil. Frankland River Olive Co's Interest Expense for the six months ended in Dec. 2015 was A$-0.39 Mil. Frankland River Olive Co's interest coverage for the quarter that ended in Dec. 2015 was 0.10. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Frankland River Olive Co's Interest Coverage or its related term are showing as below:


ASX:FLR's Interest Coverage is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 8.64
* 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.

Frankland River Olive Co  (ASX:FLR) 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 .

Frankland River Olive Co Interest Coverage Related Terms

Frankland River Olive Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Frankland River Olive Co'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.

Frankland River Olive Co Interest Coverage Chart

Frankland River Olive Co Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 0.00 0.00 0.00 0.00 0.00

Frankland River Olive Co Semi-Annual Data
Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15
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 0.00 0.00 0.00 0.00 0.10

Frankland River Olive Co Interest Coverage Competitor Comparison

For the Farm Products subindustry, Frankland River Olive Co'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.

Frankland River Olive Co Interest Coverage vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Frankland River Olive Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Frankland River Olive Co's Interest Coverage falls into.


Frankland River Olive Co 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.

Frankland River Olive Co's Interest Coverage for the fiscal year that ended in Jun. 2015 is calculated as

Here, for the fiscal year that ended in Jun. 2015, Frankland River Olive Co's Interest Expense was A$-0.74 Mil. Its Operating Income was A$-0.67 Mil. And its Long-Term Debt & Capital Lease Obligation was A$9.76 Mil.

Frankland River Olive Co did not have earnings to cover the interest expense.

Frankland River Olive Co's Interest Coverage for the quarter that ended in Dec. 2015 is calculated as

Here, for the six months ended in Dec. 2015, Frankland River Olive Co's Interest Expense was A$-0.39 Mil. Its Operating Income was A$0.04 Mil. And its Long-Term Debt & Capital Lease Obligation was A$10.00 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2015 )/Interest Expense (Q: Dec. 2015 )
=-1*0.039/-0.39
=0.10

* 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 0.10 mean?
Frankland River Olive Co (ASX:FLR) has a Interest Coverage of 0.10 as of Dec. 2015. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Frankland River Olive Co and its competitors.
Is Frankland River Olive Co's Interest Coverage too high?
Frankland River Olive Co's current Interest Coverage is 0.10. The Consumer Packaged Goods industry median Interest Coverage is 8.64. Frankland River Olive Co's value of 0.10 is 98.8% below this industry median.
How does Frankland River Olive Co's Interest Coverage compare to competitors?
Frankland River Olive Co's Interest Coverage of 0.10 can be compared against companies in the Consumer Packaged Goods industry. The industry median Interest Coverage is 8.64. Frankland River Olive Co's value of 0.10 is 98.8% below this benchmark. 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 Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.64, based on 1,510 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. Frankland River Olive Co's current Interest Coverage of 0.10 is 98.8% below the industry median. 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 Frankland River Olive Co and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frankland River Olive Co's current Interest Coverage is 0.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frankland River Olive Co stock overvalued right now?
Frankland River Olive Co (ASX:FLR) has a current Interest Coverage of 0.10. The current Interest Coverage is 0.10 and 98.8% below the Consumer Packaged Goods industry median of 8.64. 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 Frankland River Olive Co (ASX:FLR), the current Interest Coverage is 0.10 as of Dec. 2015. 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.

Frankland River Olive Co Business Description

Frankland River Olive Co Ltd was established in 1999. The Company is engaged in growing, harvesting, processing and sale of extra virgin olive oil for Australian and international markets.