WG Wearne (JSE:WEA) Interest Coverage : 1.35 (As of Aug. 2017)

WG Wearne Interest Coverage Chart

WG Wearne Annual Data
	Trend	Feb08	Feb09	Feb10	Feb11	Feb12	Feb13	Feb14	Feb15	Feb16	Feb17
Interest Coverage		Get a 7-Day Free Trial					0.26	0.45	0.59	0.06	-

WG Wearne Semi-Annual Data
	Feb08	Aug08	Feb09	Aug09	Feb10	Aug10	Feb11	Aug11	Feb12	Aug12	Feb13	Aug13	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17
Interest Coverage	Get a 7-Day Free Trial															0.80	-	0.66	-	1.35

Competitive Comparison of WG Wearne's Interest Coverage

For the Building Materials subindustry, WG Wearne'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.

WG Wearne's Interest Coverage Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, WG Wearne's Interest Coverage distribution charts can be found below:

* The bar in red indicates where WG Wearne's Interest Coverage falls into.

WG Wearne 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

WG Wearne's Interest Coverage for the fiscal year that ended in Feb. 2017 is calculated as

Here, for the fiscal year that ended in Feb. 2017, WG Wearne's Interest Expense was R-17.0 Mil. Its Operating Income was R-18.6 Mil. And its Long-Term Debt & Capital Lease Obligation was R43.7 Mil.

WG Wearne's Interest Coverage for the quarter that ended in Aug. 2017 is calculated as

Here, for the six months ended in Aug. 2017, WG Wearne's Interest Expense was R-10.6 Mil. Its Operating Income was R14.3 Mil. And its Long-Term Debt & Capital Lease Obligation was R24.6 Mil.

* 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.

WG Wearne  (JSE:WEA) 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 .

WG Wearne Interest Coverage Related Terms

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WG Wearne (JSE:WEA) Business Description