Orinoco Gold (ASX:OGX) Interest Coverage: 0 (At Loss) (As of Jun. 2018)


What is Orinoco Gold Interest Coverage?

Orinoco Gold ASX:OGX Interest Coverage is 0 (At Loss) as of Jun. 2018. The stock has 3 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. Orinoco Gold's Operating Income for the six months ended in Jun. 2018 was A$-3.34 Mil. Orinoco Gold's Interest Expense for the six months ended in Jun. 2018 was A$-1.18 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 Orinoco Gold's Interest Coverage or its related term are showing as below:


ASX:OGX's Interest Coverage is not ranked *
in the Metals & Mining industry.
Industry Median: No Debt
* 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.

Orinoco Gold  (ASX:OGX) 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 .

Orinoco Gold Interest Coverage Related Terms

Orinoco Gold Interest Coverage Historical Data

* Premium members only.

The historical data trend for Orinoco Gold'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.

Orinoco Gold Interest Coverage Chart

Orinoco Gold Annual Data
Trend Jun12 Jun13 Dec15 Dec16 Dec17 Dec18
Interest Coverage
Get a 7-Day Free Trial No Debt 0.00 0.00 0.00 0.00

Orinoco Gold Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18
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 0.00 0.00 0.00 0.00 0.00

ASX:OGX vs LSMG: Interest Coverage Comparison

For the Other Industrial Metals & Mining subindustry, Orinoco Gold'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.

Orinoco Gold Interest Coverage vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Orinoco Gold's Interest Coverage distribution charts can be found below:

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


Orinoco Gold 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.

Orinoco Gold's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, Orinoco Gold's Interest Expense was A$-3.67 Mil. Its Operating Income was A$-10.43 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.00 Mil.

Orinoco Gold did not have earnings to cover the interest expense.

Orinoco Gold's Interest Coverage for the quarter that ended in Jun. 2018 is calculated as

Here, for the six months ended in Jun. 2018, Orinoco Gold's Interest Expense was A$-1.18 Mil. Its Operating Income was A$-3.34 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.00 Mil.

Orinoco Gold 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?
Orinoco Gold (ASX:OGX) has a Interest Coverage of 0 (At Loss) as of Jun. 2018. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Orinoco Gold and its competitors.
Is Orinoco Gold's Interest Coverage too high?
Orinoco Gold's current Interest Coverage is 0 (At Loss).
How does Orinoco Gold's Interest Coverage compare to LSMG?
Orinoco Gold's Interest Coverage of 0 (At Loss) can be compared against companies in the Metals & Mining industry. The industry median Interest Coverage is 10,000.00. 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 Metals & Mining company?
The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,319 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 Orinoco Gold and its competitors. For the Metals & Mining industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Orinoco Gold'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 Orinoco Gold stock overvalued right now?
Orinoco Gold (ASX:OGX) 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 Orinoco Gold (ASX:OGX), the current Interest Coverage is 0 (At Loss) as of Jun. 2018. 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.

Orinoco Gold Business Description

Address 9/448 Roberts Road, Subiaco, WA, AUS, 6008
Orinoco Gold Ltd is a Brazilian-focused gold company. It is focussed on mining the Cascavel gold mine as well as unlocking the Faina Goldfields Project (Faina Project) located in the central Brazilian State of Goias. The company's segments include Gold and All Other. The Faina Project consists of a large tenement package of over 50 tenements that encompass the key Cascavel, Sertao and Tinteiro Projects, as well as numerous advanced gold exploration targets including Espanola, Elisio, Antenna, and Xupe.