Orbitz Worldwide (FRA:32O) Interest Coverage : 0.89 (As of Jun. 2015)

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What is Orbitz Worldwide 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. Orbitz Worldwide's Operating Income for the three months ended in Jun. 2015 was €5.9 Mil. Orbitz Worldwide's Interest Expense for the three months ended in Jun. 2015 was €-6.7 Mil. Orbitz Worldwide's interest coverage for the quarter that ended in Jun. 2015 was 0.89. The higher the ratio, the stronger the company's financial strength is.

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

FRA:32O' s Interest Coverage Range Over the Past 10 Years
Min: 0.12 Med: 0.97 Max: 2.33
Current: 1.13

FRA:32O's Interest Coverage is not ranked
in the Travel & Leisure industry.
Industry Median: 4.67 vs FRA:32O: 1.13

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

Orbitz Worldwide Interest Coverage Historical Data

The historical data trend for Orbitz Worldwide'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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Orbitz Worldwide Interest Coverage Chart

Orbitz Worldwide Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Interest Coverage

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0.12

1.42

2.33

Orbitz Worldwide Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Interest Coverage	Get a 7-Day Free Trial															2.73	3.22	2.42	-	0.89

Competitive Comparison of Orbitz Worldwide's Interest Coverage

For the Leisure subindustry, Orbitz Worldwide'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.

Orbitz Worldwide's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Orbitz Worldwide's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Orbitz Worldwide's Interest Coverage falls into.

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Orbitz Worldwide 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.

Orbitz Worldwide'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, Orbitz Worldwide's Interest Expense was €-28.6 Mil. Its Operating Income was €66.5 Mil. And its Long-Term Debt & Capital Lease Obligation was €342.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2014 )	/	Interest Expense (A: Dec. 2014 )
	=	-1	*	66.51	/	-28.557
	=	2.33

Orbitz Worldwide's Interest Coverage for the quarter that ended in Jun. 2015 is calculated as

Here, for the three months ended in Jun. 2015, Orbitz Worldwide's Interest Expense was €-6.7 Mil. Its Operating Income was €5.9 Mil. And its Long-Term Debt & Capital Lease Obligation was €361.3 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2015 )	/	Interest Expense (Q: Jun. 2015 )
	=	-1	*	5.934	/	-6.653
	=	0.89

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

Orbitz Worldwide (FRA:32O) 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 .

Orbitz Worldwide Interest Coverage Related Terms

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

Orbitz Worldwide Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Orbitz Worldwide Inc (FRA:32O) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.orbitz.com

Orbitz Worldwide Inc was incorporated in Delaware on June 18, 2007 and was formed to be the parent company of the business-to-consumer travel businesses of Travelport, including Orbitz, ebookers and HotelClub and the related subsidiaries and affiliates of those businesses. It is an online travel company that uses technology to enable leisure and business travelers to research, plan and book travel products and services. Its brand portfolio includes Orbitz and CheapTickets in the Americas; ebookers in Europe; and HotelClub and RatesToGo based in Australia, which have operations globally (collectively referred to as HotelClub). It also owns and operates Orbitz for Business, a corporate travel company, and Orbitz Partner Network group, which delivers private label travel solutions to partners. It provides customers with the ability to book travel products and services from suppliers worldwide, including air travel, hotels, vacation packages, car rentals, cruises, rail tickets, travel insurance and destination services such as ground transportation, event tickets and tours. Orbitz.com is its brand and sells a full suite of travel products and services, including flights, hotels, car rentals, cruises, and vacation packages. CheapTickets is a U.S. travel website that targets value-conscious customers. CheapTickets offers customers travel products and services, including air travel, hotels, car rentals, cruises, travel insurance, destination services and event tickets from suppliers worldwide on a stand-alone basis or as part of a vacation package. Customers can also book travel products from their mobile devices through a mobile website. Orbitz for Business leverages and customizes its technology expertise for corporate travelers, offering a complete portfolio of travel products and services that help corporate customers plan, search and book business travel. Orbitz for Business delivers full service, cost-effective travel products and travel management solutions, including 24/7 support along with expense reporting and policy management tools. ebookers is a pan-European online travel agency that offers customers the ability to search for and book travel products and services through websites in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, the Netherlands, Norway, Sweden, Switzerland and the United Kingdom. Customers can book travel products and services, including airline tickets, hotel rooms, car rentals, rail tickets and travel insurance, on a stand-alone basis or as part of a vacation package. ebookers also offers customers the ability to book travel products from their mobile phones through the ebookers App for iPhone, Android and iPad and mobile website. HotelClub is a global hotel booking website offering members a worldwide selection of hotel properties across more than 140 countries. The Company uses a combination of online and traditional offline marketing. The Company's competition includes: online and offlin

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