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General DataComm Industries (General DataComm Industries) Interest Coverage : 0 (At Loss) (As of Jun. 2010)


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What is General DataComm Industries 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. General DataComm Industries's Operating Income for the three months ended in Jun. 2010 was $-0.27 Mil. General DataComm Industries's Interest Expense for the three months ended in Jun. 2010 was $-0.71 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 General DataComm Industries's Interest Coverage or its related term are showing as below:


GNRD's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 12.61
* Ranked among companies with meaningful Interest Coverage only.

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


General DataComm Industries Interest Coverage Historical Data

The historical data trend for General DataComm Industries'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.

* Premium members only.

General DataComm Industries Interest Coverage Chart

General DataComm Industries Annual Data
Trend Sep96 Sep97 Sep98 Sep99 Sep00 Sep05 Sep06 Sep07 Sep08 Sep09
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.16 - 0.22 - -

General DataComm Industries Quarterly Data
Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of General DataComm Industries's Interest Coverage

For the Communication Equipment subindustry, General DataComm Industries'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.


General DataComm Industries's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, General DataComm Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where General DataComm Industries's Interest Coverage falls into.



General DataComm Industries 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.

General DataComm Industries's Interest Coverage for the fiscal year that ended in Sep. 2009 is calculated as

Here, for the fiscal year that ended in Sep. 2009, General DataComm Industries's Interest Expense was $-2.89 Mil. Its Operating Income was $-2.79 Mil. And its Long-Term Debt & Capital Lease Obligation was $4.50 Mil.

General DataComm Industries did not have earnings to cover the interest expense.

General DataComm Industries's Interest Coverage for the quarter that ended in Jun. 2010 is calculated as

Here, for the three months ended in Jun. 2010, General DataComm Industries's Interest Expense was $-0.71 Mil. Its Operating Income was $-0.27 Mil. And its Long-Term Debt & Capital Lease Obligation was $4.50 Mil.

General DataComm Industries 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.

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


General DataComm Industries  (GREY:GNRD) 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 .


General DataComm Industries Interest Coverage Related Terms

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General DataComm Industries (General DataComm Industries) Business Description

Traded in Other Exchanges
N/A
Address
6 Rubber Avenue, Naugatuck, CT, USA, 06770
General DataComm Industries Inc is a provider of networking and telecommunications products, services and solutions. The company is focused on providing multi-service provisioning solutions using multi-service access and switching products.
Executives
Howard S Modlin director, 10 percent owner, officer: Chief Executive Officer P O BOX 813, LIBERTY CORNER NJ 07938

General DataComm Industries (General DataComm Industries) Headlines

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