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CV Holdings (CV Holdings) Interest Coverage : 0.07 (As of Dec. 2008)


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What is CV Holdings Interest Coverage?

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. CV Holdings's Operating Income for the three months ended in Dec. 2008 was $1.3 Mil. CV Holdings's Interest Expense for the three months ended in Dec. 2008 was $-19.1 Mil. CV Holdings's interest coverage for the quarter that ended in Dec. 2008 was 0.07. The higher the ratio, the stronger the company's financial strength is.

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


CVHL's Interest Coverage is not ranked *
in the Credit Services industry.
Industry Median: 82.75
* 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.


CV Holdings Interest Coverage Historical Data

The historical data trend for CV Holdings'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.

* Premium members only.

CV Holdings Interest Coverage Chart

CV Holdings Annual Data
Trend Dec05 Dec06 Dec07 Dec08
Interest Coverage
N/A N/A 1.06 -

CV Holdings Quarterly Data
Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08
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 0.82 N/A - - 0.07

Competitive Comparison of CV Holdings's Interest Coverage

For the Credit Services subindustry, CV Holdings'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.


CV Holdings's Interest Coverage Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, CV Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where CV Holdings's Interest Coverage falls into.



CV Holdings 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.

CV Holdings's Interest Coverage for the fiscal year that ended in Dec. 2008 is calculated as

Here, for the fiscal year that ended in Dec. 2008, CV Holdings's Interest Expense was $-82.0 Mil. Its Operating Income was $-46.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,012.6 Mil.

CV Holdings did not have earnings to cover the interest expense.

CV Holdings's Interest Coverage for the quarter that ended in Dec. 2008 is calculated as

Here, for the three months ended in Dec. 2008, CV Holdings's Interest Expense was $-19.1 Mil. Its Operating Income was $1.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,012.6 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2008 )/Interest Expense (Q: Dec. 2008 )
=-1*1.313/-19.122
=0.07

* 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.


CV Holdings  (OTCPK:CVHL) 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 .


CV Holdings Interest Coverage Related Terms

Thank you for viewing the detailed overview of CV Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


CV Holdings (CV Holdings) Business Description

Traded in Other Exchanges
N/A
Address
1300 Quail Street, Suite 106, Newport Beach, CA, USA, 92660
Realty Finance Corp operates as a holding company for several finance-related businesses. The Company, through its wholly-owned or controlled subsidiaries, holds several types of investment assets, including loans receivable, finance leases, commercial Collateralized Debt Obligations (CDO) interests, and investments in joint ventures and limited liability companies.
Executives
Raymond E Wirta director C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Douglas C Eby director C/O MARKEL CORPORATION, 4521 HIGHWOODS PARKWAY, GLEN ALLEN VA 23060
Michael A Angerthal officer: Executive VP, CFO & Treasurer C/O VIRTUS INVESTMENT PARTNERS, INC., 100 PEARL STREET, HARTFORD CT 06103
Ricardo Koenigsberger director 185 ASYLUM STREET, 37TH FLOOR, HARTFORD CT 06103
Vincent J Costantini director 71 SUNSET ROAD, WESTON MA 02493

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