Con-way (FRA:CTR) Interest Coverage : 6.35 (As of Jun. 2015)

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What is Con-way 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. Con-way's Operating Income for the three months ended in Jun. 2015 was €75 Mil. Con-way's Interest Expense for the three months ended in Jun. 2015 was €-12 Mil. Con-way's interest coverage for the quarter that ended in Jun. 2015 was 6.35. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Con-way's Interest Coverage or its related term are showing as below:

FRA:CTR' s Interest Coverage Range Over the Past 10 Years
Min: 1.32 Med: 4.18 Max: 11.75
Current: 5.02

FRA:CTR's Interest Coverage is not ranked
in the Transportation industry.
Industry Median: 5.41 vs FRA:CTR: 5.02

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

Con-way Interest Coverage Historical Data

The historical data trend for Con-way'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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Con-way Interest Coverage Chart

Con-way Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Interest Coverage

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1.32

3.74

4.18

3.92

5.02

Con-way 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															7.66	6.83	3.09	3.91	6.35

Competitive Comparison of Con-way's Interest Coverage

For the Trucking subindustry, Con-way'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.

Con-way's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Con-way's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Con-way's Interest Coverage falls into.

Con-way 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.

Con-way'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, Con-way's Interest Expense was €-43 Mil. Its Operating Income was €218 Mil. And its Long-Term Debt & Capital Lease Obligation was €592 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2014 )	/	Interest Expense (A: Dec. 2014 )
	=	-1	*	217.713	/	-43.353
	=	5.02

Con-way's Interest Coverage for the quarter that ended in Jun. 2015 is calculated as

Here, for the three months ended in Jun. 2015, Con-way's Interest Expense was €-12 Mil. Its Operating Income was €75 Mil. And its Long-Term Debt & Capital Lease Obligation was €649 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2015 )	/	Interest Expense (Q: Jun. 2015 )
	=	-1	*	74.849	/	-11.78
	=	6.35

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

Con-way (FRA:CTR) 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 .

Con-way Interest Coverage Related Terms

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

Con-way (FRA:CTR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Con-way Inc (FRA:CTR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.con-way.com

Con-way Inc was incorporated in Delaware in 1958. The Company and its subsidiaries provide transportation, logistics and supply-chain management services to various manufacturing, industrial and retail customers. Its business units operate in regional, inter-regional and transcontinental less-than-truckload and full-truckload freight transportation, contract logistics and supply-chain management, multimodal freight brokerage, and trailer manufacturing. The Company operates under three reporting segments: Freight, Logistics and Truckload. The Freight segment consists of the operating results of the Con-way Freight business unit. Con-way Freight is a less-than-truckload motor carrier that utilizes a network of freight service centers to provide day-definite regional, inter-regional and transcontinental less-than-truckload freight services throughout North America. LTL carriers transport shipments from multiple shippers utilizing a network of freight service centers combined with a fleet of linehaul and pickup-and-delivery tractors and trailers. LTL shipments weigh between 100 and 15,000 pounds. In 2013, Con-way Freight's average weight per shipment was 1,334 pounds. The Logistics segment consists of the operating results of the Menlo Worldwide Logistics business unit. Menlo develops contract-logistics solutions, which include managing complex distribution networks, and providing supply-chain engineering and consulting, and multimodal freight brokerage services. Menlo's supply-chain management offerings are mainly related to transportation-management and contract-warehousing services. The Truckload segment consists of the operating results of the Con-way Truckload business unit. Con-way Truckload is a full-truckload motor carrier that utilizes a fleet of tractors and trailers to provide short- and long-haul, asset-based transportation services throughout North America. Con-way Truckload provides dry-van transportation services to manufacturing, industrial and retail customers while using single drivers as well as two-person driver teams over long-haul routes, with each trailer containing only one customer's goods. On average, Con-way Truckload transports shipments more than 800 miles from origin to destination. Under its regional service offering, Con-way Truckload transports truckload shipments between 100 and 600 miles, including local-area service for truckload shipments of less than 100 miles. It competes with regional and national LTL companies, some of which are subsidiaries of integrated transportation service providers, domestic and foreign logistics companies, truckload carriers, railroads and private fleets. The Company is subject to various federal, state and local, as well as foreign, laws and regulations that apply to its business activities.