HQGE (HQ Global Education) Interest Coverage: 697.88 (As of Nov. 2011)


What is HQ Global Education Interest Coverage?

HQ Global Education HQGE -99.00% Interest Coverage is 697.88 as of Nov. 2011.

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. HQ Global Education's Operating Income for the three months ended in Nov. 2011 was $5.58 Mil. HQ Global Education's Interest Expense for the three months ended in Nov. 2011 was $-0.01 Mil. HQ Global Education's interest coverage for the quarter that ended in Nov. 2011 was 697.88. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for HQ Global Education's Interest Coverage or its related term are showing as below:


HQGE's Interest Coverage is not ranked *
in the Media - Diversified industry.
Industry Median: 11.88
* 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.

HQ Global Education  (OTCPK:HQGE) 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 .

HQ Global Education Interest Coverage Related Terms

HQ Global Education Interest Coverage Historical Data

* Premium members only.

The historical data trend for HQ Global Education'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.

HQ Global Education Interest Coverage Chart

HQ Global Education Annual Data
Trend Feb08 Feb09 Aug10
Interest Coverage
No Debt No Debt 136.01

HQ Global Education Quarterly Data
Feb08 May08 Aug08 Nov08 Feb09 May09 Aug09 Nov09 Feb10 May10 Aug10 Nov10 Feb11 May11 Aug11 Nov11
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 154.00 150.65 228.00 80.05 697.88

HQGE vs BKIT, BIEI, OPTI: Interest Coverage Comparison

For the Entertainment subindustry, HQ Global Education'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.

HQ Global Education Interest Coverage vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, HQ Global Education's Interest Coverage distribution charts can be found below:

* The bar in red indicates where HQ Global Education's Interest Coverage falls into.


HQ Global Education 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.

HQ Global Education's Interest Coverage for the fiscal year that ended in Aug. 2010 is calculated as

Here, for the fiscal year that ended in Aug. 2010, HQ Global Education's Interest Expense was $-0.11 Mil. Its Operating Income was $14.69 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.48 Mil.

Interest Coverage=-1* Operating Income (A: Aug. 2010 )/Interest Expense (A: Aug. 2010 )
=-1*14.689/-0.108
=136.01

HQ Global Education's Interest Coverage for the quarter that ended in Nov. 2011 is calculated as

Here, for the three months ended in Nov. 2011, HQ Global Education's Interest Expense was $-0.01 Mil. Its Operating Income was $5.58 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.68 Mil.

Interest Coverage=-1* Operating Income (Q: Nov. 2011 )/Interest Expense (Q: Nov. 2011 )
=-1*5.583/-0.008
=697.88

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 697.88 mean?
HQ Global Education (HQGE) has a Interest Coverage of 697.88 as of Nov. 2011. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on HQ Global Education and its competitors.
Is HQ Global Education's Interest Coverage too high?
HQ Global Education's current Interest Coverage is 697.88. The Media - Diversified industry median Interest Coverage is 11.88. HQ Global Education's value of 697.88 is 5774.4% above this industry median.
How does HQ Global Education's Interest Coverage compare to BKIT and BIEI?
HQ Global Education's Interest Coverage of 697.88 can be compared against companies in the Media - Diversified industry. The industry median Interest Coverage is 11.88. HQ Global Education's value of 697.88 is 5774.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Media - Diversified company?
The median Interest Coverage among Media - Diversified companies is 11.88, based on 609 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HQ Global Education's current Interest Coverage of 697.88 is 5774.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on HQ Global Education and its competitors. For the Media - Diversified industry, the median Interest Coverage is 11.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HQ Global Education's current Interest Coverage is 697.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HQ Global Education stock overvalued right now?
HQ Global Education (HQGE) has a current Interest Coverage of 697.88. The current Interest Coverage is 697.88 and 5774.4% above the Media - Diversified industry median of 11.88. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For HQ Global Education (HQGE), the current Interest Coverage is 697.88 as of Nov. 2011. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

HQ Global Education Business Description

Address 333 City Boulevard West, Suite 1700, Orange, CA, USA, 92868
HQ Global Education Inc is a provider of comprehensive film and TV production services. The company offers a wide array of film and TV production resources for small Indie productions through to full theatrical projects. Its products and services include film and television; producing; financing; and optioning.