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. WSP Holdings's
Operating Income
for the
six
months ended in Dec. 2012 was €-47.37 Mil. WSP Holdings's Interest Expense for the
six
months ended in Dec. 2012 was €-33.00 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 WSP Holdings's Interest Coverage or its related term are showing as below:
FRA:52WN's Interest Coverage is not ranked *
in the Oil & Gas industry.
Industry Median: 5.935 * Ranked among companies with meaningful Interest Coverage only.
The historical data trend for WSP 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.
Competitive Comparison of WSP Holdings's Interest Coverage
For the Oil & Gas Equipment & Services subindustry, WSP 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.
WSP Holdings's Interest Coverage Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, WSP Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where WSP Holdings's Interest Coverage falls into.
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:
WSP Holdings 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.
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 .
WSP Holdings Interest Coverage Related Terms
Thank you for viewing the detailed overview of WSP Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
WSP Holdings Ltd was incorporated in the Cayman Islands on November 16, 2006. It is a holding company, which conducts substantially all of its operations through its subsidiaries in China. The Company is a Chinese manufacturer of seamless Oil Country Tubular Goods (OCTG), including casing, tubing and drill pipes used for oil and natural gas exploration, drilling and extraction. It offers a range of seamless OCTG products to its customers. Its product portfolio could generally be divided into two categories, API products and non-API. API products are products manufactured according to the standards formulated by the American Petroleum Institute and non-API products are products tailor-made to meet its customers' specifications, and that are generally manufactured to a higher standard than API products. The Company's key operating assets included ten threading lines and two drill pipe production lines with an aggregate annual production capacity of approximately 1,394,000 tonnes of seamless OCTG. Its production capacity was approximately 1,430,000 tonnes. It sells its products in both domestic and international markets. In China, it targets sales of its products mainly at Chinese oil companies. It faces competition in the domestic and international markets in which it operates. Many of its competitors are state-owned enterprises which might have greater resources and better brand recognition than it does. The Company's subsidiaries are generally subject to laws and regulations applicable to foreign investments in China and, in particular, laws applicable to wholly foreign-owned enterprises.
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