Schlumberger AG (FRA:44SA.PFD) Interest Coverage : 6.41 (As of Dec. 2016)

Schlumberger AG Interest Coverage Chart

Schlumberger AG Annual Data
	Trend	Mar08	Mar09	Mar10	Mar11	Mar12	Mar13	Mar14	Mar15	Dec16
Interest Coverage		Get a 7-Day Free Trial				2.24	2.27	3.53	2.44	4.40

Schlumberger AG Semi-Annual Data
	Mar08	Mar09	Sep09	Mar10	Sep10	Mar11	Sep11	Mar12	Sep12	Mar13	Sep13	Mar14	Sep14	Mar15	Sep15	Jun16	Dec16
Interest Coverage	Get a 7-Day Free Trial												0.02	5.15	1.04	2.40	6.41

Competitive Comparison of Schlumberger AG's Interest Coverage

For the Beverages - Brewers subindustry, Schlumberger AG'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.

Schlumberger AG's Interest Coverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Schlumberger AG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Schlumberger AG's Interest Coverage falls into.

Schlumberger AG 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Schlumberger AG's Interest Coverage for the fiscal year that ended in Dec. 2016 is calculated as

Here, for the fiscal year that ended in Dec. 2016, Schlumberger AG's Interest Expense was €-0.87 Mil. Its Operating Income was €3.84 Mil. And its Long-Term Debt & Capital Lease Obligation was €8.50 Mil.

Schlumberger AG's Interest Coverage for the quarter that ended in Dec. 2016 is calculated as

Here, for the six months ended in Dec. 2016, Schlumberger AG's Interest Expense was €-0.44 Mil. Its Operating Income was €2.79 Mil. And its Long-Term Debt & Capital Lease Obligation was €8.50 Mil.

* 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.

Schlumberger AG  (FRA:44SA.PFD) 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 .

Schlumberger AG Interest Coverage Related Terms

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Schlumberger AG Business Description