Araucaria Participacoes (BSP:VDNP3B) Interest Coverage: 0 (At Loss) (As of Jun. 2014)


What is Araucaria Participacoes Interest Coverage?

Araucaria Participacoes BSP:VDNP3B Interest Coverage is 0 (At Loss) as of Jun. 2014.

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. Araucaria Participacoes's Operating Income for the three months ended in Jun. 2014 was R$-26.36 Mil. Araucaria Participacoes's Interest Expense for the three months ended in Jun. 2014 was R$-3.23 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 Araucaria Participacoes's Interest Coverage or its related term are showing as below:


BSP:VDNP3B's Interest Coverage is not ranked *
in the industry.
Industry Median:
* 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.

Araucaria Participacoes  (BSP:VDNP3B) 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 .

Araucaria Participacoes Interest Coverage Related Terms

Araucaria Participacoes Interest Coverage Historical Data

* Premium members only.

The historical data trend for Araucaria Participacoes'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.

Araucaria Participacoes Interest Coverage Chart

Araucaria Participacoes Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13
Interest Coverage
No Debt 0.00 0.00 0.00 0.00

Araucaria Participacoes Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 0.00 1.46 N/A 0.00 0.00

Araucaria Participacoes Interest Coverage Competitor Comparison

For the subindustry, Araucaria Participacoes'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.

Araucaria Participacoes Interest Coverage vs Industry

For the industry and sector, Araucaria Participacoes's Interest Coverage distribution charts can be found below:

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


Araucaria Participacoes 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.

Araucaria Participacoes's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, Araucaria Participacoes's Interest Expense was R$-28.80 Mil. Its Operating Income was R$-65.34 Mil. And its Long-Term Debt & Capital Lease Obligation was R$0.03 Mil.

Araucaria Participacoes did not have earnings to cover the interest expense.

Araucaria Participacoes's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the three months ended in Jun. 2014, Araucaria Participacoes's Interest Expense was R$-3.23 Mil. Its Operating Income was R$-26.36 Mil. And its Long-Term Debt & Capital Lease Obligation was R$33.46 Mil.

Araucaria Participacoes 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?
Araucaria Participacoes (BSP:VDNP3B) has a Interest Coverage of 0 (At Loss) as of Jun. 2014. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Araucaria Participacoes and its competitors.
Is Araucaria Participacoes' Interest Coverage too high?
Araucaria Participacoes' current Interest Coverage is 0 (At Loss).
How does Araucaria Participacoes' Interest Coverage compare to competitors?
Araucaria Participacoes' Interest Coverage is 0 (At Loss). 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 company?
A good Interest Coverage depends on the industry context. 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 Araucaria Participacoes and its competitors. Araucaria Participacoes'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 Araucaria Participacoes stock overvalued right now?
Araucaria Participacoes (BSP:VDNP3B) 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 Araucaria Participacoes (BSP:VDNP3B), the current Interest Coverage is 0 (At Loss) as of Jun. 2014. 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.

Araucaria Participacoes Business Description