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Viterra (ASX:VTA) Interest Coverage : 4.41 (As of Jul. 2012)


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What is Viterra 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. Viterra's Operating Income for the three months ended in Jul. 2012 was A$178.44 Mil. Viterra's Interest Expense for the three months ended in Jul. 2012 was A$-40.46 Mil. Viterra's interest coverage for the quarter that ended in Jul. 2012 was 4.41. The higher the ratio, the stronger the company's financial strength is.

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

ASX:VTA' s Interest Coverage Range Over the Past 10 Years
Min: -4   Med: 1.65   Max: 1000
Current: 4.4

ASX:VTA's Interest Coverage is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 8.44 vs ASX:VTA: 4.40

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

Viterra Interest Coverage Historical Data

The historical data trend for Viterra'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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Viterra Interest Coverage Chart

Viterra Annual Data
Trend Jul01 Jul02 Jul03 Jul04 Jul05 Jul06 Oct08 Oct09 Oct10 Oct11
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.89 10.88 3.51 2.35 4.22

Viterra Quarterly Data
Apr07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12
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 Premium Member Only 6.99 1.62 4.82 4.73 4.41

Competitive Comparison of Viterra's Interest Coverage

For the Farm Products subindustry, Viterra'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.

Viterra's Interest Coverage Distribution in the Consumer Packaged Goods Industry

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

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


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Viterra 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.

Viterra's Interest Coverage for the fiscal year that ended in Oct. 2011 is calculated as

Here, for the fiscal year that ended in Oct. 2011, Viterra's Interest Expense was A$-115.68 Mil. Its Operating Income was A$488.69 Mil. And its Long-Term Debt & Capital Lease Obligation was A$1,085.68 Mil.

Interest Coverage=-1* Operating Income (A: Oct. 2011 )/Interest Expense (A: Oct. 2011 )
=-1*488.689/-115.684
=4.22

Viterra's Interest Coverage for the quarter that ended in Jul. 2012 is calculated as

Here, for the three months ended in Jul. 2012, Viterra's Interest Expense was A$-40.46 Mil. Its Operating Income was A$178.44 Mil. And its Long-Term Debt & Capital Lease Obligation was A$595.97 Mil.

Interest Coverage=-1* Operating Income (Q: Jul. 2012 )/Interest Expense (Q: Jul. 2012 )
=-1*178.438/-40.456
=4.41

* 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.

Viterra  (ASX:VTA) 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 .

Viterra Interest Coverage Related Terms

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

Viterra Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Viterra Inc (ASX:VTA) » Definitions » Interest Coverage
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Traded in Other Exchanges
N/A
Address
Website
Viterra Inc was founded in 1924. The Company's business is managed and reported through three interrelated segments: Grain Handling and Marketing, Agri-products and Processing. In addition, a corporate non-operating segment is reported. Its Grain Handling and Marketing segment mainly handles wheat, durum, barley, canola and pulses. It derives its revenue from accumulating, storing, blending, transporting and marketing these grains from the producer's farm to end-use markets. This segment includes grain storage facilities and special crop processing plants strategically located in the prime agricultural growing regions of North America (primarily Western Canada) and southern Australia. It also has port export terminals located in Canada and South Australia and marketing offices located throughout North America, Australia, Europe and Asia. Its Agri-products segment is engaged in the sale of seed, crop protection products, fertilizer, and small agricultural equipment through a network of retail locations. The agri-products operation includes seed research and development, nitrogen fertilizer manufacturing, and crop protection product formulation and packaging. Subsequent to the end of fiscal 2011, the Company added bulk fuel distribution to its agri-products offerings in Western Canada. Its Processing segment extends the Company's value chain by producing food ingredients for consumer products companies and food processors around the world.