Hyperion Therapeutics (FRA:0HY) Interest Coverage : 19.18 (As of Mar. 2015)

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What is Hyperion Therapeutics 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. Hyperion Therapeutics's Operating Income for the three months ended in Mar. 2015 was €4.3 Mil. Hyperion Therapeutics's Interest Expense for the three months ended in Mar. 2015 was €-0.2 Mil. Hyperion Therapeutics's interest coverage for the quarter that ended in Mar. 2015 was 19.18. The higher the ratio, the stronger the company's financial strength is.

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

FRA:0HY's Interest Coverage is not ranked ^*
in the Biotechnology industry.
Industry Median: 114.5
* 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.

Hyperion Therapeutics Interest Coverage Historical Data

The historical data trend for Hyperion Therapeutics'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.

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Hyperion Therapeutics Interest Coverage Chart

Hyperion Therapeutics Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Interest Coverage

Hyperion Therapeutics Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15
Interest Coverage	Get a 7-Day Free Trial													5.66	57.59	-	26.36	19.18

Competitive Comparison of Hyperion Therapeutics's Interest Coverage

For the Biotechnology subindustry, Hyperion Therapeutics'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.

Hyperion Therapeutics's Interest Coverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Hyperion Therapeutics's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hyperion Therapeutics's Interest Coverage falls into.

Hyperion Therapeutics 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.

Hyperion Therapeutics's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, Hyperion Therapeutics's Interest Expense was €-1.3 Mil. Its Operating Income was €-3.4 Mil. And its Long-Term Debt & Capital Lease Obligation was €14.7 Mil.

Hyperion Therapeutics did not have earnings to cover the interest expense.

Hyperion Therapeutics's Interest Coverage for the quarter that ended in Mar. 2015 is calculated as

Here, for the three months ended in Mar. 2015, Hyperion Therapeutics's Interest Expense was €-0.2 Mil. Its Operating Income was €4.3 Mil. And its Long-Term Debt & Capital Lease Obligation was €15.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2015 )	/	Interest Expense (Q: Mar. 2015 )
	=	-1	*	4.335	/	-0.226
	=	19.18

The higher the ratio, the stronger the company's Financial Strength is.

Hyperion Therapeutics (FRA:0HY) 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 .

Hyperion Therapeutics Interest Coverage Related Terms

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Hyperion Therapeutics Business Description

Industry

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Address

Website

http://www.hyperiontx.com

Hyperion Therapeutics Inc., was incorporated in Delaware on November 1, 2006. The Company completed its initial public offering on July 2012. It is a commercial biopharmaceutical company, engaged in the development and commercialization of novel therapeutics to treat disorders in the areas of orphan diseases and hepatology. Its products, RAVICTI (glycerol phenylbutyrate) Oral liquid, BUPHENYL and AMMONAPS (sodium phenylbutyrate) Tablets and Powder, are designed to lower ammonia in the blood. The Company has developed RAVICTI to treat urea cycle disorders including 7 of the 8 prevalent UCD subtypes, and is developing glycerol phenylbutyrate, the active pharmaceutical ingredient in RAVICTI, to treat hepatic encephalopathy. RAVICTI is indicated for use as a nitrogen-binding agent for chronic management of adult and pediatric patients above 2 years of age with urea cycle disorders who cannot be managed by dietary protein restriction and/or amino acid supplementation alone. It distributes RAVICTI through two specialty pharmacies with a single dedicated call center responsible for interfacing with patients, physicians and payors. BUPHENYL is indicated in all patients with neonatal-onset deficiency (complete enzymatic deficiency, presenting within the first 28 days of life). It is also indicated in patients with late-onset disease (partial enzymatic deficiency, presenting after the first month of life) who have a history of hyperammonemic encephalopathy. The Company faces competition from established pharmaceutical and biotechnology companies, as well as from academic institutions, government agencies and private and public research institutions, among others, which may in the future develop products to treat UCD or HE. The Company is subject to numerous federal, state and local laws relating to such matters as safe working conditions, manufacturing practices, environmental protection, fire hazard control, and disposal of hazardous or potentially hazardous substances.

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