ELCO (Elcom International) Interest Coverage: 0 (At Loss) (As of Jun. 2008)


What is Elcom International Interest Coverage?

Elcom International ELCO Interest Coverage is 0 (At Loss) as of Jun. 2008.

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. Elcom International's Operating Income for the three months ended in Jun. 2008 was $-0.17 Mil. Elcom International's Interest Expense for the three months ended in Jun. 2008 was $-0.04 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 Elcom International's Interest Coverage or its related term are showing as below:


ELCO's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 24.78
* 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.

Elcom International  (OTCPK:ELCO) 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 .

Elcom International Interest Coverage Related Terms

Elcom International Interest Coverage Historical Data

* Premium members only.

The historical data trend for Elcom International'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.

Elcom International Interest Coverage Chart

Elcom International Annual Data
Trend Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A N/A No Debt 0.00 0.00

Elcom International Quarterly Data
Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08
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 0.00 0.00 0.00 0.00 0.00

ELCO vs BVSN, CLCI, DUOT: Interest Coverage Comparison

For the Software - Application subindustry, Elcom International'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.

Elcom International Interest Coverage vs Software Industry

For the Software industry and Technology sector, Elcom International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Elcom International's Interest Coverage falls into.


Elcom International 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.

Elcom International's Interest Coverage for the fiscal year that ended in Dec. 2007 is calculated as

Here, for the fiscal year that ended in Dec. 2007, Elcom International's Interest Expense was $-0.05 Mil. Its Operating Income was $-4.07 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.05 Mil.

Elcom International did not have earnings to cover the interest expense.

Elcom International's Interest Coverage for the quarter that ended in Jun. 2008 is calculated as

Here, for the three months ended in Jun. 2008, Elcom International's Interest Expense was $-0.04 Mil. Its Operating Income was $-0.17 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.01 Mil.

Elcom International 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.

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 0 (At Loss) mean?
Elcom International (ELCO) has a Interest Coverage of 0 (At Loss) as of Jun. 2008. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Elcom International and its competitors.
Is Elcom International's Interest Coverage too high?
Elcom International's current Interest Coverage is 0 (At Loss).
How does Elcom International's Interest Coverage compare to BVSN and CLCI?
Elcom International's Interest Coverage of 0 (At Loss) can be compared against companies in the Software industry. The industry median Interest Coverage is 24.78. 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 Software company?
The median Interest Coverage among Software companies is 24.78, based on 1,705 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 Elcom International and its competitors. For the Software industry, the median Interest Coverage is 24.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elcom International'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 Elcom International stock overvalued right now?
Elcom International (ELCO) 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 Elcom International (ELCO), the current Interest Coverage is 0 (At Loss) as of Jun. 2008. 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.

Elcom International Business Description

Address 300 Granite Street, Suite 412, Braintree, MA, USA, 02184
Elcom International Inc develops and licenses proprietary software systems that enable users to buy and sell merchandise through computer networks. The company's Personal Electronic Commerce Online System is software that enables clients to automate procurement functions, such as pricing, invoicing, and payment. In addition, users can create electronic marketplaces to conduct online transactions with both suppliers and distributors. PECOS is offered as both licensed software and as a hosted application.