Max Trust (ASX:MXQ) Interest Coverage : 1.34 (As of Jun. 2013)

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What is Max Trust 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. Max Trust's Operating Income for the six months ended in Jun. 2013 was A$12.27 Mil. Max Trust's Interest Expense for the six months ended in Jun. 2013 was A$-9.15 Mil. Max Trust's interest coverage for the quarter that ended in Jun. 2013 was 1.34. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Max Trust's Interest Coverage or its related term are showing as below:

ASX:MXQ' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 1.34
Current: 1.34

ASX:MXQ's Interest Coverage is not ranked
in the Asset Management industry.
Industry Median: 44.555 vs ASX:MXQ: 1.34

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Max Trust Interest Coverage Historical Data

The historical data trend for Max Trust'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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Max Trust Interest Coverage Chart

Max Trust Annual Data

Trend

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Interest Coverage

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0.70

0.72

1.34

Max Trust Semi-Annual Data
	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13
Interest Coverage	Get a 7-Day Free Trial			-	0.70	0.72	-	1.34

Competitive Comparison of Max Trust's Interest Coverage

For the Asset Management subindustry, Max Trust'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.

Max Trust's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Max Trust's Interest Coverage distribution charts can be found below:

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

Max Trust 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.

Max Trust's Interest Coverage for the fiscal year that ended in Jun. 2013 is calculated as

Here, for the fiscal year that ended in Jun. 2013, Max Trust's Interest Expense was A$-9.15 Mil. Its Operating Income was A$12.27 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.00 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2013 )	/	Interest Expense (A: Jun. 2013 )
	=	-1	*	12.271	/	-9.154
	=	1.34

Max Trust's Interest Coverage for the quarter that ended in Jun. 2013 is calculated as

Here, for the six months ended in Jun. 2013, Max Trust's Interest Expense was A$-9.15 Mil. Its Operating Income was A$12.27 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.00 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2013 )	/	Interest Expense (Q: Jun. 2013 )
	=	-1	*	12.271	/	-9.154
	=	1.34

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

Max Trust (ASX:MXQ) 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 .

Max Trust Interest Coverage Related Terms

Thank you for viewing the detailed overview of Max Trust's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Max Trust (ASX:MXQ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Max Trust (ASX:MXQ) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.thetrustcompany.com.au

Allco Max Securities & Mortgage Trust (AXQ) ('MaxÂ´) is a lending vehicle which writes loans into structured finance transactions predominantly originated by Allco, and purchases investment grade debt on wholesale markets. AXQ's Investment Manager is Allco Funds Management Limited.

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