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EDCI Holdings (EDCI Holdings) Interest Coverage : 50.14 (As of Dec. 2009)


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What is EDCI 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. EDCI Holdings's Operating Income for the three months ended in Dec. 2009 was $11.1 Mil. EDCI Holdings's Interest Expense for the three months ended in Dec. 2009 was $-0.2 Mil. EDCI Holdings's interest coverage for the quarter that ended in Dec. 2009 was 50.14. The higher the ratio, the stronger the company's financial strength is.

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


EDCI's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 12.55
* 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.


EDCI Holdings Interest Coverage Historical Data

The historical data trend for EDCI 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.

EDCI Holdings Interest Coverage Chart

EDCI Holdings Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A N/A N/A 4.28 1.33

EDCI Holdings Quarterly Data
Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09
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 - - - 50.14

Competitive Comparison of EDCI Holdings's Interest Coverage

For the Communication Equipment subindustry, EDCI 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.


EDCI Holdings's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, EDCI Holdings's Interest Coverage distribution charts can be found below:

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



EDCI 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.

EDCI Holdings's Interest Coverage for the fiscal year that ended in Dec. 2009 is calculated as

Here, for the fiscal year that ended in Dec. 2009, EDCI Holdings's Interest Expense was $-0.8 Mil. Its Operating Income was $1.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $3.1 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2009 )/Interest Expense (A: Dec. 2009 )
=-1*1.049/-0.791
=1.33

EDCI Holdings's Interest Coverage for the quarter that ended in Dec. 2009 is calculated as

Here, for the three months ended in Dec. 2009, EDCI Holdings's Interest Expense was $-0.2 Mil. Its Operating Income was $11.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $3.1 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2009 )/Interest Expense (Q: Dec. 2009 )
=-1*11.132/-0.222
=50.14

* 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.


EDCI Holdings  (OTCPK:EDCI) 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 .


EDCI Holdings Interest Coverage Related Terms

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


EDCI Holdings (EDCI Holdings) Business Description

Traded in Other Exchanges
N/A
Address
129 E. 17th Street, 2nd Floor, New York, NY, USA, 10003
EDCI Holdings Inc, together with its wholly owned and controlled majority owned subsidiaries, is engaged in the manufacturing and distribution segment of the optical disc industry.
Executives
David Sandberg director 40 SE 5TH STREET, SUITE 502, BOCA RATON FL 33432
Cliff O Bickell director C/O SCIENTIFIC GAMES INTERNATIONAL, INC., 1500 BLUEGRASS LAKES PARKWAY, ALPHARETTA, GA 30004
Matthew K Behrent officer: EVP, Corporate Development 9999 EAST 121ST STREET, FISHERS IN 46037
Clarke H Bailey director, officer: Interim CEO/Chairman BOD

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