Tyco International (BUE:JCI) Interest Coverage: 11.27 (As of Jun. 2016)


What is Tyco International Interest Coverage?

Tyco International BUE:JCI Interest Coverage is 11.27 as of Jun. 2016.

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. Tyco International's Operating Income for the three months ended in Jun. 2016 was ARS3,467 Mil. Tyco International's Interest Expense for the three months ended in Jun. 2016 was ARS-308 Mil. Tyco International's interest coverage for the quarter that ended in Jun. 2016 was 11.27. The higher the ratio, the stronger the company's financial strength is.

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


BUE:JCI's Interest Coverage is not ranked *
in the Business Services industry.
Industry Median: 12.98
* 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.

Tyco International  (BUE:JCI) 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 .

Tyco International Interest Coverage Related Terms

Tyco International Interest Coverage Historical Data

* Premium members only.

The historical data trend for Tyco International'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.

Tyco International Interest Coverage Chart

Tyco International Annual Data
Trend Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.47 3.60 8.31 7.71 10.38

Tyco International Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 11.19 10.30 12.71 11.59 11.27

BUE:JCI vs ALLE, ADT, MSA: Interest Coverage Comparison

For the Security & Protection Services subindustry, Tyco International'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.

Tyco International Interest Coverage vs Business Services Industry

For the Business Services industry and Industrials sector, Tyco International's Interest Coverage distribution charts can be found below:

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


Tyco International 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.

Tyco International's Interest Coverage for the fiscal year that ended in Sep. 2015 is calculated as

Here, for the fiscal year that ended in Sep. 2015, Tyco International's Interest Expense was ARS-959 Mil. Its Operating Income was ARS9,957 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS20,300 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2015 )/Interest Expense (A: Sep. 2015 )
=-1*9957.036/-959.035
=10.38

Tyco International's Interest Coverage for the quarter that ended in Jun. 2016 is calculated as

Here, for the three months ended in Jun. 2016, Tyco International's Interest Expense was ARS-308 Mil. Its Operating Income was ARS3,467 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS30,266 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2016 )/Interest Expense (Q: Jun. 2016 )
=-1*3466.973/-307.554
=11.27

* 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 11.27 mean?
Tyco International (BUE:JCI) has a Interest Coverage of 11.27 as of Jun. 2016. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tyco International and its competitors.
Is Tyco International's Interest Coverage too high?
Tyco International's current Interest Coverage is 11.27. The Business Services industry median Interest Coverage is 12.98. Tyco International's value of 11.27 is 13.2% below this industry median.
How does Tyco International's Interest Coverage compare to ALLE and ADT?
Tyco International's Interest Coverage of 11.27 can be compared against companies in the Business Services industry. The industry median Interest Coverage is 12.98. Tyco International's value of 11.27 is 13.2% below this benchmark. 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 Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 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. Tyco International's current Interest Coverage of 11.27 is 13.2% below the industry median. 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 Tyco International and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tyco International's current Interest Coverage is 11.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tyco International stock overvalued right now?
Tyco International (BUE:JCI) has a current Interest Coverage of 11.27. The current Interest Coverage is 11.27 and 13.2% below the Business Services industry median of 12.98. 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 Tyco International (BUE:JCI), the current Interest Coverage is 11.27 as of Jun. 2016. 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.

Tyco International Business Description

Address Unit 1202 Building 1000 City Gate, Mahon, Cork, IRL, 8212
Tyco International PLC is a provider of security products and services, fire detection and suppression products and services, and life safety products. Brand names include Tyco, Tyco Integrated Security, SimplexGrinnell, Sensormatic, Wormald, Scott, and ADT (outside North American markets). The revenue breakdown is 37% North America installation and services, 38% rest of world installation and services, and 25% global products. Tyco completed its spin-off of ADT and the flow control business in September 2012, five years after its prior three-way split.