KLMR (KLM Royal Dutch Airlines) Interest Coverage: 4.84 (As of Dec. 2018)


What is KLM Royal Dutch Airlines Interest Coverage?

KLM Royal Dutch Airlines KLMR Interest Coverage is 4.84 as of Dec. 2018.

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. KLM Royal Dutch Airlines's Operating Income for the six months ended in Dec. 2018 was $1,073.95 Mil. KLM Royal Dutch Airlines's Interest Expense for the six months ended in Dec. 2018 was $-221.84 Mil. KLM Royal Dutch Airlines's interest coverage for the quarter that ended in Dec. 2018 was 4.84. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for KLM Royal Dutch Airlines's Interest Coverage or its related term are showing as below:


KLMR's Interest Coverage is not ranked *
in the Transportation industry.
Industry Median: 5.72
* 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.

KLM Royal Dutch Airlines  (OTCPK:KLMR) 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 .

KLM Royal Dutch Airlines Interest Coverage Related Terms

KLM Royal Dutch Airlines Interest Coverage Historical Data

* Premium members only.

The historical data trend for KLM Royal Dutch Airlines'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.

KLM Royal Dutch Airlines Interest Coverage Chart

KLM Royal Dutch Airlines Annual Data
Trend Mar04 Mar05 Mar06 Mar07 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.50 0.16 4.13 3.73 4.84

KLM Royal Dutch Airlines Semi-Annual Data
Mar94 Mar95 Mar96 Mar97 Mar98 Mar99 Mar00 Mar01 Mar02 Mar03 Mar04 Mar05 Mar06 Mar07 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
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 0.50 0.16 4.13 3.73 4.84

KLMR vs : Interest Coverage Comparison

For the Airlines subindustry, KLM Royal Dutch Airlines'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.

KLM Royal Dutch Airlines Interest Coverage vs Transportation Industry

For the Transportation industry and Industrials sector, KLM Royal Dutch Airlines's Interest Coverage distribution charts can be found below:

* The bar in red indicates where KLM Royal Dutch Airlines's Interest Coverage falls into.


KLM Royal Dutch Airlines 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.

KLM Royal Dutch Airlines's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, KLM Royal Dutch Airlines's Interest Expense was $-221.84 Mil. Its Operating Income was $1,073.95 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,458.48 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2018 )/Interest Expense (A: Dec. 2018 )
=-1*1073.948/-221.843
=4.84

KLM Royal Dutch Airlines's Interest Coverage for the quarter that ended in Dec. 2018 is calculated as

Here, for the six months ended in Dec. 2018, KLM Royal Dutch Airlines's Interest Expense was $-221.84 Mil. Its Operating Income was $1,073.95 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,458.48 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2018 )/Interest Expense (Q: Dec. 2018 )
=-1*1073.948/-221.843
=4.84

* 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 4.84 mean?
KLM Royal Dutch Airlines (KLMR) has a Interest Coverage of 4.84 as of Dec. 2018. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on KLM Royal Dutch Airlines and its competitors.
Is KLM Royal Dutch Airlines' Interest Coverage too high?
KLM Royal Dutch Airlines' current Interest Coverage is 4.84. The Transportation industry median Interest Coverage is 5.72. KLM Royal Dutch Airlines' value of 4.84 is 15.4% below this industry median.
How does KLM Royal Dutch Airlines' Interest Coverage compare to ?
KLM Royal Dutch Airlines' Interest Coverage of 4.84 can be compared against companies in the Transportation industry. The industry median Interest Coverage is 5.72. KLM Royal Dutch Airlines' value of 4.84 is 15.4% below 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 Transportation company?
The median Interest Coverage among Transportation companies is 5.72, based on 838 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. KLM Royal Dutch Airlines's current Interest Coverage of 4.84 is 15.4% below 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 KLM Royal Dutch Airlines and its competitors. For the Transportation industry, the median Interest Coverage is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLM Royal Dutch Airlines's current Interest Coverage is 4.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLM Royal Dutch Airlines stock overvalued right now?
KLM Royal Dutch Airlines (KLMR) has a current Interest Coverage of 4.84. The current Interest Coverage is 4.84 and 15.4% below the Transportation industry median of 5.72. 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 KLM Royal Dutch Airlines (KLMR), the current Interest Coverage is 4.84 as of Dec. 2018. 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.

KLM Royal Dutch Airlines Business Description

Comparable Companies
Address Amsterdamseweg 55, Amstelveen, NH, NLD, 1182 GP
KLM Royal Dutch Airlines is engaged in network activities, which include air transport of passengers and cargo activities, aircraft maintenance, leisure, and other activities linked to air transport. Its segments are: Network, which generates maximum revenue and includes transportation of passengers on scheduled flights, ancillary passenger revenues, SkyTeam alliance partnership arrangements, block-seat sales, transportation of freight, and sale of cargo capacity to third parties; Maintenance, which provides engine services, component services, and airframe maintenance to airlines and clients internationally; Leisure, which covers charter flights and low-cost scheduled flights operated by transavia.com; and Other segment. It generates maximum revenue from Europe and North Africa.