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. El Capitan Precious Metals's
Operating Income
for the
three
months ended in Sep. 2017 was $-0.71 Mil. El Capitan Precious Metals's Interest Expense for the
three
months ended in Sep. 2017 was $-0.10 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 El Capitan Precious Metals's Interest Coverage or its related term are showing as below:
ECPN's Interest Coverage is not ranked *
in the Metals & Mining industry.
Industry Median: No Debt * Ranked among companies with meaningful Interest Coverage only.
El Capitan Precious Metals (OTCPK:ECPN) 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 .
El Capitan Precious Metals Interest Coverage Related Terms
El Capitan Precious Metals Interest Coverage Historical Data
* 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.
El Capitan Precious Metals Interest Coverage Chart
For the Other Precious Metals & Mining subindustry, El Capitan Precious Metals'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.
El Capitan Precious Metals Interest Coverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, El Capitan Precious Metals's Interest Coverage distribution charts can be found below:
* The bar in red indicates where El Capitan Precious Metals's Interest Coverage falls into.
El Capitan Precious Metals 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:
El Capitan Precious Metals 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.
What does a Interest Coverage of 0 (At Loss) mean?
El Capitan Precious Metals (ECPN) has a Interest Coverage of 0 (At Loss) as of Sep. 2017. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on El Capitan Precious Metals and its competitors.
Is El Capitan Precious Metals' Interest Coverage too high?
El Capitan Precious Metals' current Interest Coverage is 0 (At Loss).
How does El Capitan Precious Metals' Interest Coverage compare to MAGE?
El Capitan Precious Metals' Interest Coverage of 0 (At Loss) can be compared against companies in the Metals & Mining industry. The industry median Interest Coverage is 10,000.00. 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 Metals & Mining company?
The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,319 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 El Capitan Precious Metals and its competitors. For the Metals & Mining industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. El Capitan Precious Metals's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is El Capitan Precious Metals stock overvalued right now?
El Capitan Precious Metals (ECPN) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). 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 El Capitan Precious Metals (ECPN), the current Interest Coverage is 0 (At Loss) as of Sep. 2017. 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.
El Capitan Precious Metals Inc is an exploration stage mining company. It explores for precious metals and other minerals. The company owns an interest in El Capitan Ltd which holds an interest in the El Capitan property located in New Mexico. Its objective is to market and sell the El Capitan Property to a mining company or enter a joint venture arrangement with a mining company to conduct mining operations. The El Capitan property consists of more than 350 Bureau of Land Management lode claims and four patented claims.
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