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Berkshire Homes (Berkshire Homes) Interest Coverage : 0 (At Loss) (As of Aug. 2015)


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What is Berkshire 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. Berkshire Homes's Operating Income for the three months ended in Aug. 2015 was $-0.00 Mil. Berkshire Homes's Interest Expense for the three months ended in Aug. 2015 was $-0.13 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 Berkshire Homes's Interest Coverage or its related term are showing as below:


BKSH's Interest Coverage is not ranked *
in the Real Estate industry.
Industry Median: 4.06
* 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.


Berkshire Homes Interest Coverage Historical Data

The historical data trend for Berkshire 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.

Berkshire Homes Interest Coverage Chart

Berkshire Homes Annual Data
Trend Nov11 Nov12 Nov13 Nov14
Interest Coverage
No Debt - - 0.66

Berkshire Homes Quarterly Data
Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15
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 3.48 - 0.29 - -

Competitive Comparison of Berkshire Homes's Interest Coverage

For the Real Estate Services subindustry, Berkshire 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.


Berkshire Homes's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Berkshire Homes's Interest Coverage distribution charts can be found below:

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



Berkshire 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.

Berkshire Homes's Interest Coverage for the fiscal year that ended in Nov. 2014 is calculated as

Here, for the fiscal year that ended in Nov. 2014, Berkshire Homes's Interest Expense was $-0.32 Mil. Its Operating Income was $0.21 Mil. And its Long-Term Debt & Capital Lease Obligation was $9.15 Mil.

Interest Coverage=-1* Operating Income (A: Nov. 2014 )/Interest Expense (A: Nov. 2014 )
=-1*0.214/-0.323
=0.66

Berkshire Homes's Interest Coverage for the quarter that ended in Aug. 2015 is calculated as

Here, for the three months ended in Aug. 2015, Berkshire Homes's Interest Expense was $-0.13 Mil. Its Operating Income was $-0.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $9.36 Mil.

Berkshire Homes 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.


Berkshire Homes  (OTCPK:BKSH) 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 .


Berkshire Homes Interest Coverage Related Terms

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


Berkshire Homes (Berkshire Homes) Business Description

Traded in Other Exchanges
N/A
Address
2375 East Camelback Road, Suite 600, Phoenix, AZ, USA, 85016
Berkshire Homes Inc is a United States based company engaged in acquiring and rehabilitating distressed residential real estate properties that are below market value, rehabilitates them, and then sell or lease them, depending on which approach will generate the highest return.

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