BONTQ (The Bon-Ton Stores) Interest Coverage: 0 (At Loss) (As of Oct. 2017)


What is The Bon-Ton Stores Interest Coverage?

The Bon-Ton Stores BONTQ -99.00% Interest Coverage is 0 (At Loss) as of Oct. 2017.

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. The Bon-Ton Stores's Operating Income for the three months ended in Oct. 2017 was $-26 Mil. The Bon-Ton Stores's Interest Expense for the three months ended in Oct. 2017 was $-19 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 The Bon-Ton Stores's Interest Coverage or its related term are showing as below:


BONTQ's Interest Coverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 7.94
* 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.

The Bon-Ton Stores  (OTCPK:BONTQ) 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 .

The Bon-Ton Stores Interest Coverage Related Terms

The Bon-Ton Stores Interest Coverage Historical Data

* Premium members only.

The historical data trend for The Bon-Ton Stores'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.

The Bon-Ton Stores Interest Coverage Chart

The Bon-Ton Stores Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.91 1.10 0.78 0.19 0.29

The Bon-Ton Stores Quarterly Data
Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17
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 0.00 4.27 0.00 0.00 0.00

BONTQ vs DBHSF: Interest Coverage Comparison

For the Department Stores subindustry, The Bon-Ton Stores'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.

The Bon-Ton Stores Interest Coverage vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Bon-Ton Stores's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Bon-Ton Stores's Interest Coverage falls into.


The Bon-Ton Stores 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.

The Bon-Ton Stores's Interest Coverage for the fiscal year that ended in Jan. 2017 is calculated as

Here, for the fiscal year that ended in Jan. 2017, The Bon-Ton Stores's Interest Expense was $-67 Mil. Its Operating Income was $20 Mil. And its Long-Term Debt & Capital Lease Obligation was $983 Mil.

Interest Coverage=-1* Operating Income (A: Jan. 2017 )/Interest Expense (A: Jan. 2017 )
=-1*19.594/-66.863
=0.29

The Bon-Ton Stores's Interest Coverage for the quarter that ended in Oct. 2017 is calculated as

Here, for the three months ended in Oct. 2017, The Bon-Ton Stores's Interest Expense was $-19 Mil. Its Operating Income was $-26 Mil. And its Long-Term Debt & Capital Lease Obligation was $474 Mil.

The Bon-Ton Stores 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?
The Bon-Ton Stores (BONTQ) has a Interest Coverage of 0 (At Loss) as of Oct. 2017. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Bon-Ton Stores and its competitors.
Is The Bon-Ton Stores' Interest Coverage too high?
The Bon-Ton Stores' current Interest Coverage is 0 (At Loss).
How does The Bon-Ton Stores' Interest Coverage compare to DBHSF?
The Bon-Ton Stores' Interest Coverage of 0 (At Loss) can be compared against companies in the Retail - Cyclical industry. The industry median Interest Coverage is 7.94. 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.94, based on 824 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 The Bon-Ton Stores and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Bon-Ton Stores'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 The Bon-Ton Stores stock overvalued right now?
The Bon-Ton Stores (BONTQ) 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 The Bon-Ton Stores (BONTQ), the current Interest Coverage is 0 (At Loss) as of Oct. 2017. 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.

The Bon-Ton Stores Business Description

Address 2801 East Market Street, York, PA, USA, 17402
The Bon-Ton Stores Inc operates is a department store operator in the United States. It offers a range of brand-name fashion apparel and accessories for women, men, and children, through stores in the United States. Its nationally distributed brand assortment includes a range of labels in the apparel, accessories, footwear, cosmetics and home furnishings industries, such as Anne Klein, Calvin Klein, Carters, Chaps, Clarks, Clinique, Coach, Estee Lauder and Others.