IPEU (IPE Universal) Interest Coverage: No Debt (1) (As of Jun. 2012)


IPEU IPE Universal Inc IPEU
30 GF Score
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What is IPE Universal Interest Coverage?

IPE Universal IPEU 30 Interest Coverage is No Debt (1) as of Jun. 2012. GuruFocus rates IPEU with a GF Score™ of 30/100.

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. IPE Universal's Operating Income for the six months ended in Jun. 2012 was $1.67 Mil. IPE Universal's Interest Expense for the six months ended in Jun. 2012 was $0.00 Mil. IPE Universal has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) 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.

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


IPEU's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 24.67
* 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.

IPE Universal  (OTCPK:IPEU) 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 .

IPE Universal Interest Coverage Related Terms

IPE Universal Interest Coverage Historical Data

* Premium members only.

The historical data trend for IPE Universal'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.

IPE Universal Interest Coverage Chart

IPE Universal Annual Data
Trend Jun09 Jun10 Jun11
Interest Coverage
No Debt 106.00 2,078.00

IPE Universal Semi-Annual Data
Jun09 Jun10 Jun11 Jun12
Interest Coverage No Debt 106.00 2,078.00 No Debt

IPEU vs SPNS, SPT, PD: Interest Coverage Comparison

For the Software - Application subindustry, IPE Universal'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.

IPE Universal Interest Coverage vs Software Industry

For the Software industry and Technology sector, IPE Universal's Interest Coverage distribution charts can be found below:

* The bar in red indicates where IPE Universal's Interest Coverage falls into.


IPEU
30GF Score
IPE Universal Inc IPEU
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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IPE Universal 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.

IPE Universal's Interest Coverage for the fiscal year that ended in Jun. 2011 is calculated as

Here, for the fiscal year that ended in Jun. 2011, IPE Universal's Interest Expense was $-0.00 Mil. Its Operating Income was $2.08 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2011 )/Interest Expense (A: Jun. 2011 )
=-1*2.078/-0.001
=2,078.00

IPE Universal's Interest Coverage for the quarter that ended in Jun. 2012 is calculated as

Here, for the six months ended in Jun. 2012, IPE Universal's Interest Expense was $0.00 Mil. Its Operating Income was $1.67 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

IPE Universal had no debt (1).

* 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 No Debt <sup>(1)</sup> mean?
IPE Universal (IPEU) has a Interest Coverage of No Debt (1) as of Jun. 2012. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on IPE Universal and its competitors.
Is IPE Universal's Interest Coverage too high?
IPE Universal's current Interest Coverage is No Debt (1). Overall, IPE Universal has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does IPE Universal's Interest Coverage compare to SPNS and SPT?
IPE Universal's Interest Coverage of No Debt (1) can be compared against companies in the Software industry. The industry median Interest Coverage is 24.67. 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 Software company?
The median Interest Coverage among Software companies is 24.67, based on 1,705 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. 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 IPE Universal and its competitors. For the Software industry, the median Interest Coverage is 24.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPE Universal's current Interest Coverage is No Debt (1). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IPE Universal stock overvalued right now?
IPE Universal (IPEU) has a current Interest Coverage of No Debt (1). The current Interest Coverage is No Debt (1). IPE Universal's overall GF Score™ is 30/100. 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 IPE Universal (IPEU), the current Interest Coverage is No Debt (1) as of Jun. 2012. 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.

IPE Universal Business Description

Address 1752 Ainsdale Drive, Roseville, CA, USA, 95747
IPE Universal Inc is engaged in developing childhood education software systems. The company is engaged in high-tech business developing early childhood education software systems located in Taiwan and China. The company also provides education programs, products, services and technological products but also licenses IP services to businesses, NFTs, Crypto, Virtual Real Estate, Metaverse (Virtual World), and merchandise and many other products.
30GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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