DSG (Diamond S Shipping Group) Interest Coverage: 1.33 (As of Mar. 2013) — 51% Above Median


What is Diamond S Shipping Group Interest Coverage?

Diamond S Shipping Group DSG Interest Coverage is 1.33 as of Mar. 2013, which is 51% above its 10-year median of 0.88. The stock has 1 warning sign investors should review.

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. Diamond S Shipping Group's Operating Income for the six months ended in Mar. 2013 was $44.38 Mil. Diamond S Shipping Group's Interest Expense for the six months ended in Mar. 2013 was $-33.40 Mil. Diamond S Shipping Group's interest coverage for the quarter that ended in Mar. 2013 was 1.33. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Diamond S Shipping Group Inc interest coverage is 1.33, which is low.

The historical rank and industry rank for Diamond S Shipping Group's Interest Coverage or its related term are showing as below:

DSG' s Interest Coverage Range Over the Past 10 Years
Min: 0.43   Med: 0.88   Max: 1.33
Current: 1.33

DSG's Interest Coverage is not ranked
in the Transportation industry.
Industry Median: 5.66 vs DSG: 1.33

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

Diamond S Shipping Group  (NYSE:DSG) 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 .

Diamond S Shipping Group Interest Coverage Related Terms

Diamond S Shipping Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for Diamond S Shipping Group'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.

Diamond S Shipping Group Interest Coverage Chart

Diamond S Shipping Group Annual Data
Trend Mar12 Mar13
Interest Coverage
0.43 1.33

Diamond S Shipping Group Semi-Annual Data
Mar12 Mar13
Interest Coverage 0.43 1.33

DSG vs PRGNF, TEUFF, BSTN: Interest Coverage Comparison

For the Marine Shipping subindustry, Diamond S Shipping Group'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.

Diamond S Shipping Group Interest Coverage vs Transportation Industry

For the Transportation industry and Industrials sector, Diamond S Shipping Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Diamond S Shipping Group's Interest Coverage falls into.


Diamond S Shipping Group 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.

Diamond S Shipping Group's Interest Coverage for the fiscal year that ended in Mar. 2013 is calculated as

Here, for the fiscal year that ended in Mar. 2013, Diamond S Shipping Group's Interest Expense was $-33.40 Mil. Its Operating Income was $44.38 Mil. And its Long-Term Debt & Capital Lease Obligation was $582.17 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2013 )/Interest Expense (A: Mar. 2013 )
=-1*44.381/-33.403
=1.33

Diamond S Shipping Group's Interest Coverage for the quarter that ended in Mar. 2013 is calculated as

Here, for the six months ended in Mar. 2013, Diamond S Shipping Group's Interest Expense was $-33.40 Mil. Its Operating Income was $44.38 Mil. And its Long-Term Debt & Capital Lease Obligation was $582.17 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2013 )/Interest Expense (Q: Mar. 2013 )
=-1*44.381/-33.403
=1.33

* 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 1.33 mean?
Diamond S Shipping Group (DSG) has a Interest Coverage of 1.33 as of Mar. 2013. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Diamond S Shipping Group and its competitors. This is 51% above median its historical median of 0.88. Over the past decade, Diamond S Shipping Group's Interest Coverage has ranged from 0.43 to 1.33.
Is Diamond S Shipping Group's Interest Coverage too high?
Diamond S Shipping Group's current Interest Coverage of 1.33 is 51% above median its 10-year median of 0.88. Over the past 10 years, this metric has ranged from a low of 0.43 to a high of 1.33. The Transportation industry median Interest Coverage is 5.66. Diamond S Shipping Group's value of 1.33 is 76.5% below this industry median.
How does Diamond S Shipping Group's Interest Coverage compare to PRGNF and TEUFF?
Diamond S Shipping Group's Interest Coverage of 1.33 can be compared against companies in the Transportation industry. The industry median Interest Coverage is 5.66. Diamond S Shipping Group's value of 1.33 is 76.5% below this benchmark. Historically, Diamond S Shipping Group's own Interest Coverage has ranged from 0.43 to 1.33 over the past decade. While the company's 10-year median is 0.88 vs. the industry median of 5.66, Diamond S Shipping Group has consistently been below the industry average. 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 Transportation company?
The median Interest Coverage among Transportation companies is 5.66, based on 845 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. Diamond S Shipping Group's current Interest Coverage of 1.33 is 76.5% 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 Diamond S Shipping Group and its competitors. For the Transportation industry, the median Interest Coverage is 5.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamond S Shipping Group's current Interest Coverage is 1.33, which is 51% above median its own 10-year median of 0.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamond S Shipping Group stock overvalued right now?
Diamond S Shipping Group (DSG) has a current Interest Coverage of 1.33. The current Interest Coverage is 1.33, which is 51% above median its 10-year median of 0.88 and 76.5% below the Transportation industry median of 5.66. 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 Diamond S Shipping Group (DSG), the current Interest Coverage is 1.33 as of Mar. 2013. 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.

Diamond S Shipping Group Business Description

Diamond S Shipping Group Inc, is incorporated in Marshall Islands on July 31, 2013. The Company provides seaborne transportation of refined petroleum and other products in the international shipping markets. The Company is the owners and operators of medium range, or MR, product tankers. The Company's fleet currently consists of 33 MR product tankers built at Korean and Japanese shipyards. The Company competes on basis of price, vessel location, size, age and condition of the vessel. The Company is subject to various international conventions, national, state and local laws and regulations in the countries in which its vessels may operate or are registered.