JACO (Jaco Electronics) Interest Coverage: 20.81 (As of Mar. 2009)


What is Jaco Electronics Interest Coverage?

Jaco Electronics JACO Interest Coverage is 20.81 as of Mar. 2009.

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. Jaco Electronics's Operating Income for the three months ended in Mar. 2009 was $2.8 Mil. Jaco Electronics's Interest Expense for the three months ended in Mar. 2009 was $-0.1 Mil. Jaco Electronics's interest coverage for the quarter that ended in Mar. 2009 was 20.81. 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 Jaco Electronics's Interest Coverage or its related term are showing as below:


JACO's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 13.73
* 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.

Jaco Electronics  (OTCPK:JACO) 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 .

Jaco Electronics Interest Coverage Related Terms

Jaco Electronics Interest Coverage Historical Data

* Premium members only.

The historical data trend for Jaco Electronics'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.

Jaco Electronics Interest Coverage Chart

Jaco Electronics Annual Data
Trend Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06 Jun07 Jun08
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A N/A N/A N/A No Debt

Jaco Electronics Quarterly Data
Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09
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 No Debt No Debt No Debt 0.00 20.81

JACO vs OMPS: Interest Coverage Comparison

For the Electronics & Computer Distribution subindustry, Jaco Electronics'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.

Jaco Electronics Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Jaco Electronics's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Jaco Electronics's Interest Coverage falls into.


Jaco Electronics 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.

Jaco Electronics's Interest Coverage for the fiscal year that ended in Jun. 2008 is calculated as

Here, for the fiscal year that ended in Jun. 2008, Jaco Electronics's Interest Expense was $0.0 Mil. Its Operating Income was $-7.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Jaco Electronics had no debt (1).

Jaco Electronics's Interest Coverage for the quarter that ended in Mar. 2009 is calculated as

Here, for the three months ended in Mar. 2009, Jaco Electronics's Interest Expense was $-0.1 Mil. Its Operating Income was $2.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2009 )/Interest Expense (Q: Mar. 2009 )
=-1*2.809/-0.135
=20.81

* 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 20.81 mean?
Jaco Electronics (JACO) has a Interest Coverage of 20.81 as of Mar. 2009. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Jaco Electronics and its competitors.
Is Jaco Electronics' Interest Coverage too high?
Jaco Electronics' current Interest Coverage is 20.81. The Hardware industry median Interest Coverage is 13.73. Jaco Electronics' value of 20.81 is 51.6% above this industry median.
How does Jaco Electronics' Interest Coverage compare to OMPS?
Jaco Electronics' Interest Coverage of 20.81 can be compared against companies in the Hardware industry. The industry median Interest Coverage is 13.73. Jaco Electronics' value of 20.81 is 51.6% 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,673 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. Jaco Electronics's current Interest Coverage of 20.81 is 51.6% 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 Jaco Electronics and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jaco Electronics's current Interest Coverage is 20.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jaco Electronics stock overvalued right now?
Jaco Electronics (JACO) has a current Interest Coverage of 20.81. The current Interest Coverage is 20.81 and 51.6% above the Hardware industry median of 13.73. 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 Jaco Electronics (JACO), the current Interest Coverage is 20.81 as of Mar. 2009. 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.

Jaco Electronics Business Description

Address 145 Oser Avenue, Hauppauge, NY, USA, 11788
Jaco Electronics Inc is engaged in the distribution of electronic components. Its products include embedded box containers, inverters, LCD monitors, open frame monitors, single board computers, among others.