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. Cepheid's
Operating Income
for the
three
months ended in Sep. 2016 was $-5.7 Mil. Cepheid's Interest Expense for the
three
months ended in Sep. 2016 was $-3.9 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 Cepheid's Interest Coverage or its related term are showing as below:
CPHD's Interest Coverage is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: 10.27 * Ranked among companies with meaningful Interest Coverage only.
The historical data trend for Cepheid'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.
Competitive Comparison of Cepheid's Interest Coverage
For the Diagnostics & Research subindustry, Cepheid'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.
Cepheid's Interest Coverage Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Cepheid's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cepheid's Interest Coverage falls into.
Cepheid 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:
Cepheid 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.
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 .
Cepheid Interest Coverage Related Terms
Thank you for viewing the detailed overview of Cepheid's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Cepheid was incorporated in the State of California on March 4, 1996. The Company is a molecular diagnostics company that develops, manufactures and markets integrated systems for testing in the clinical market, as well as for application in its non-clinical markets. The Company's systems enable molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. The Company's product portfolio consists of tests, reagents and systems for the clinical and non-clinical markets. The Company's two systems are the GeneXpert and SmartCycler. The GeneXpert system, offers services in the clinical market, integrates sample preparation in addition to DNA amplification and detection. The GeneXpert system is designed for user types ranging from reference laboratories and hospital central laboratories to satellite testing locations, such as emergency departments and intensive care units within hospitals and doctors' offices. The SmartCycler system integrates DNA amplification and detection to allow rapid analysis of a sample. Company faces competition from a number of companies that offer products to its target markets. Company has patents covering technologies of its own and has licensed technologies from others. In addition to patents, it rely on a combination of trade secrets, copyright and trademark laws, nondisclosure agreements, licenses and other contractual provisions and technical measures to maintain and develop its competitive position with respect to intellectual property. In the Clinical market, its products are regulated as medical device products by the FDA and comparable agencies in other countries. For the Non-Clinical market, all of its products are being produced under ISO 13485 and Quality System Regulations.
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