China Runji Cement (China Runji Cement) Interest Coverage : 6.52 (As of Feb. 2011)

China Runji Cement Interest Coverage Chart

China Runji Cement Quarterly Data
	Apr06	Jul06	Oct06	Jan07	Apr07	Jul07	Oct07	Feb08	May08	Aug08	Nov08	Feb09	May09	Aug09	Nov09	Feb10	May10	Aug10	Nov10	Feb11
Interest Coverage	Get a 7-Day Free Trial															-	2.29	-	19.86	6.52

Competitive Comparison of China Runji Cement's Interest Coverage

For the Building Materials subindustry, China Runji Cement'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.

China Runji Cement's Interest Coverage Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, China Runji Cement's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Runji Cement's Interest Coverage falls into.

China Runji Cement 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

China Runji Cement's Interest Coverage for the fiscal year that ended in Aug. 2010 is calculated as

Here, for the fiscal year that ended in Aug. 2010, China Runji Cement's Interest Expense was $-1.00 Mil. Its Operating Income was $-0.02 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

China Runji Cement's Interest Coverage for the quarter that ended in Feb. 2011 is calculated as

Here, for the three months ended in Feb. 2011, China Runji Cement's Interest Expense was $-0.33 Mil. Its Operating Income was $2.13 Mil. And its Long-Term Debt & Capital Lease Obligation was $2.20 Mil.

* 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.

China Runji Cement  (GREY:CRJI) 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 .

China Runji Cement Interest Coverage Related Terms

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China Runji Cement (China Runji Cement) Business Description