GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » A V Homes Inc (NAS:AVHI) » Definitions » Interest Coverage

A V Homes (A V Homes) Interest Coverage : 2.15 (As of Jun. 2018)


View and export this data going back to 1981. Start your Free Trial

What is A V Homes 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. A V Homes's Operating Income for the three months ended in Jun. 2018 was $6.5 Mil. A V Homes's Interest Expense for the three months ended in Jun. 2018 was $-3.0 Mil. A V Homes's interest coverage for the quarter that ended in Jun. 2018 was 2.15. The higher the ratio, the stronger the company's financial strength is.

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


AVHI's Interest Coverage is not ranked *
in the Homebuilding & Construction industry.
Industry Median: 8.9
* 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.


A V Homes Interest Coverage Historical Data

The historical data trend for A V Homes'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.

* Premium members only.

A V Homes Interest Coverage Chart

A V Homes Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.65 2.34 11.25 3.55

A V Homes Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
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 2.13 2.59 5.21 0.01 2.15

Competitive Comparison of A V Homes's Interest Coverage

For the Residential Construction subindustry, A V Homes'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.


A V Homes's Interest Coverage Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, A V Homes's Interest Coverage distribution charts can be found below:

* The bar in red indicates where A V Homes's Interest Coverage falls into.



A V Homes 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.

A V Homes's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, A V Homes's Interest Expense was $-10.6 Mil. Its Operating Income was $37.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $472.1 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2017 )/Interest Expense (A: Dec. 2017 )
=-1*37.735/-10.618
=3.55

A V Homes's Interest Coverage for the quarter that ended in Jun. 2018 is calculated as

Here, for the three months ended in Jun. 2018, A V Homes's Interest Expense was $-3.0 Mil. Its Operating Income was $6.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $473.1 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2018 )/Interest Expense (Q: Jun. 2018 )
=-1*6.474/-3.012
=2.15

* 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.


A V Homes  (NAS:AVHI) 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 .


A V Homes Interest Coverage Related Terms

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


A V Homes (A V Homes) Business Description

Traded in Other Exchanges
N/A
Address
A V Homes Inc is engaged in the business of homebuilding, community development in Florida, Arizona, and Carolinas. It also engaged in the sale of land for third party development. Firm derives the majority of its revenue from the Florida. The group has built over 7,500 homes nationwide and it has been the recipient of numerous awards for planning and homebuilding accomplishments.
Executives
David Bonderman other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
James G Coulter other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Roger A Cregg director, officer: President and CEO 100 BLOOMFIELD HILL PARKWAY, STE 300, BLOOMFIELD HILLS MI 48304
Tpg Advisors Vi, Inc. other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Jonathan Pertchik director C/O TRAVELCENTERS OF AMERICA INC., 24601 CENTER RIDGE ROAD, WESTLAKE OH 44145
Matthew Coleman director 8601 NORTH SCOTTSDALE ROAD, SUITE 225, SCOTTSDALE AZ 85253
Reuben S Leibowitz director 466 LEXINGTON AVENUE 10TH FL, NEW YORK NY 10017
Dave Gomez officer: EVP, GC and Secretary 7970 SOUTH KYRENE RD., TEMPE AZ 85284
Paul Hackwell director 301 COMMERCE STREET, SUITE 300, FORT WORTH TX 76102
Kelvin L. Davis director 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Greg Kranias director C/O TPG CAPITAL, L.P., 301 COMMERCE ST, SUITE 3300, FORT WORTH TX 76102
Beth Stewart director C/O GENERAL GROWTH PROPERTIES INC, 110 NORTH WACKER DRIVE, CHICAGO IL 60606
Milton H Dresner director C/O HIGHLAND COMPANIES, 28777 NORTHWESTERN HIGHWAY, SOUTHFIELD MI 48034
Michael P Rama officer: Controller C/O AVATAR HOLDINGS INC, 201 ALHAMBRA CIRCLE 12TH FLOOR, CORAL GABLES FL 33134
William G Spears director 45 ROCKEFELLER PLZ STE 1709, SPEARS GRISANTI & BROWN, NEW YORK NY 10111