Jd Group (FRA:IZO) Interest Coverage : 2.80 (As of Dec. 2014)

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What is Jd Group 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. Jd Group's Operating Income for the six months ended in Dec. 2014 was €25 Mil. Jd Group's Interest Expense for the six months ended in Dec. 2014 was €-9 Mil. Jd Group's interest coverage for the quarter that ended in Dec. 2014 was 2.80. The higher the ratio, the stronger the company's financial strength is.

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

FRA:IZO' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 2.95
Current: 2.95

FRA:IZO's Interest Coverage is not ranked
in the Vehicles & Parts industry.
Industry Median: 7.775 vs FRA:IZO: 2.95

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

Jd Group Interest Coverage Historical Data

The historical data trend for Jd Group'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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Jd Group Interest Coverage Chart

Jd Group Annual Data

Trend

Aug04

Aug05

Aug06

Aug07

Aug08

Aug09

Aug10

Aug11

Jun13

Jun14

Interest Coverage

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6.45

4.20

6.61

6.15

2.52

Jd Group Semi-Annual Data
	Aug01	Aug02	Aug03	Aug04	Aug05	Aug06	Aug07	Aug08	Feb09	Aug09	Feb10	Aug10	Feb11	Aug11	Dec12	Jun13	Dec13	Jun14	Dec14
Interest Coverage	Get a 7-Day Free Trial														3.35	N/A	2.17	3.21	2.80

Competitive Comparison of Jd Group's Interest Coverage

For the Auto & Truck Dealerships subindustry, Jd Group'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.

Jd Group's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Jd Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Jd Group's Interest Coverage falls into.

Jd Group 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.

Jd Group's Interest Coverage for the fiscal year that ended in Jun. 2014 is calculated as

Here, for the fiscal year that ended in Jun. 2014, Jd Group's Interest Expense was €-15 Mil. Its Operating Income was €37 Mil. And its Long-Term Debt & Capital Lease Obligation was €128 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2014 )	/	Interest Expense (A: Jun. 2014 )
	=	-1	*	37.019	/	-14.683
	=	2.52

Jd Group's Interest Coverage for the quarter that ended in Dec. 2014 is calculated as

Here, for the six months ended in Dec. 2014, Jd Group's Interest Expense was €-9 Mil. Its Operating Income was €25 Mil. And its Long-Term Debt & Capital Lease Obligation was €140 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2014 )	/	Interest Expense (Q: Dec. 2014 )
	=	-1	*	25.111	/	-8.958
	=	2.80

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

Jd Group (FRA:IZO) 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 .

Jd Group Interest Coverage Related Terms

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

Jd Group (FRA:IZO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Jd Group Ltd (FRA:IZO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.jdgroup.co.za

Jd Group Ltd is a diversified furniture, appliances, electronic and technology products, automotive and building materials retailer. It also provides consumer finance, insurance, micro-lending and debt-recovery services, as well as contact-centre solutions. The Company operates its business through three segments: Retail, Consumer Finance, Automotive and Corporate. The Retail segment includes furniture and household appliances, consumer electronics, technology, building material supplies and DIY retail. The Consumer Finance segment includes consumer finance, insurance, debt management and collection services. The Automotive segment includes motor vehicle retail parts, accessories, servicing, short-term car rental. The Corporate segment support functions of the Group.

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