CVST (Covista Communications) Interest Coverage: No Debt (1) (As of Apr. 2005)


What is Covista Communications Interest Coverage?

Covista Communications CVST -99.67% Interest Coverage is No Debt (1) as of Apr. 2005.

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. Covista Communications's Operating Income for the three months ended in Apr. 2005 was $0.20 Mil. Covista Communications's Interest Expense for the three months ended in Apr. 2005 was $0.00 Mil. Covista Communications has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) 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.

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


CVST's Interest Coverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 4.715
* 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.

Covista Communications  (OTCPK:CVST) 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 .

Covista Communications Interest Coverage Related Terms

Covista Communications Interest Coverage Historical Data

* Premium members only.

The historical data trend for Covista Communications'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.

Covista Communications Interest Coverage Chart

Covista Communications Annual Data
Trend Jan96 Jan97 Jan98 Jan99 Jan00 Jan01 Jan02 Jan03 Jan04 Jan05
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A N/A N/A N/A No Debt

Covista Communications Quarterly Data
Jul00 Oct00 Jan01 Apr01 Jul01 Oct01 Jan02 Apr02 Jul02 Oct02 Jan03 Apr03 Jul03 Oct03 Jan04 Apr04 Jul04 Oct04 Jan05 Apr05
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 N/A No Debt No Debt No Debt No Debt

CVST vs FULO, TWER, DTGI: Interest Coverage Comparison

For the Telecom Services subindustry, Covista Communications'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.

Covista Communications Interest Coverage vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Covista Communications's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Covista Communications's Interest Coverage falls into.


Covista Communications 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.

Covista Communications's Interest Coverage for the fiscal year that ended in Jan. 2005 is calculated as

Here, for the fiscal year that ended in Jan. 2005, Covista Communications's Interest Expense was $0.00 Mil. Its Operating Income was $-4.29 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Covista Communications had no debt (1).

Covista Communications's Interest Coverage for the quarter that ended in Apr. 2005 is calculated as

Here, for the three months ended in Apr. 2005, Covista Communications's Interest Expense was $0.00 Mil. Its Operating Income was $0.20 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Covista Communications had no debt (1).

* 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 No Debt <sup>(1)</sup> mean?
Covista Communications (CVST) has a Interest Coverage of No Debt (1) as of Apr. 2005. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Covista Communications and its competitors.
Is Covista Communications' Interest Coverage too high?
Covista Communications' current Interest Coverage is No Debt (1).
How does Covista Communications' Interest Coverage compare to FULO and TWER?
Covista Communications' Interest Coverage of No Debt (1) can be compared against companies in the Telecommunication Services industry. The industry median Interest Coverage is 4.72. 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.72, based on 286 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. 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 Covista Communications and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covista Communications's current Interest Coverage is No Debt (1). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covista Communications stock overvalued right now?
Covista Communications (CVST) has a current Interest Coverage of No Debt (1). The current Interest Coverage is No Debt (1). 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 Covista Communications (CVST), the current Interest Coverage is No Debt (1) as of Apr. 2005. 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.

Covista Communications Business Description

Address 735 Broad Street, Unit 306, Chattanooga, TN, USA, 37402
Covista Communications Inc is a telecommunication service provider. Its products and services include voice, data, and internet solutions, including local, long-distance, and toll-free services, calling card, frame relay, Internet access, & directory assistance.