Albemarle & Bond Holdings (LSE:ABM) Interest Coverage : 3.77 (As of Jun. 2013)

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What is Albemarle & Bond Holdings Interest Coverage?

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. Albemarle & Bond Holdings's Operating Income for the six months ended in Jun. 2013 was £6.7 Mil. Albemarle & Bond Holdings's Interest Expense for the six months ended in Jun. 2013 was £-1.8 Mil. Albemarle & Bond Holdings's interest coverage for the quarter that ended in Jun. 2013 was 3.77. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Albemarle & Bond Holdings's Interest Coverage or its related term are showing as below:

LSE:ABM' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 3.77
Current: 3.77

LSE:ABM's Interest Coverage is not ranked
in the Credit Services industry.
Industry Median: 65.845 vs LSE:ABM: 3.77

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

Albemarle & Bond Holdings Interest Coverage Historical Data

The historical data trend for Albemarle & Bond Holdings'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.

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Albemarle & Bond Holdings Interest Coverage Chart

Albemarle & Bond Holdings Annual Data

Trend

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Interest Coverage

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10.28

31.74

33.79

18.41

3.77

Albemarle & Bond Holdings Semi-Annual Data
	Jun92	Jun93	Jun94	Jun95	Jun96	Jun97	Jun98	Jun01	Jun02	Jun03	Jun04	Jun05	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13
Interest Coverage	Get a 7-Day Free Trial															10.28	31.74	33.79	18.41	3.77

Competitive Comparison of Albemarle & Bond Holdings's Interest Coverage

For the Credit Services subindustry, Albemarle & Bond Holdings'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.

Albemarle & Bond Holdings's Interest Coverage Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Albemarle & Bond Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Albemarle & Bond Holdings's Interest Coverage falls into.

Albemarle & Bond Holdings 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.

Albemarle & Bond Holdings's Interest Coverage for the fiscal year that ended in Jun. 2013 is calculated as

Here, for the fiscal year that ended in Jun. 2013, Albemarle & Bond Holdings's Interest Expense was £-1.8 Mil. Its Operating Income was £6.7 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2013 )	/	Interest Expense (A: Jun. 2013 )
	=	-1	*	6.73	/	-1.787
	=	3.77

Albemarle & Bond Holdings's Interest Coverage for the quarter that ended in Jun. 2013 is calculated as

Here, for the six months ended in Jun. 2013, Albemarle & Bond Holdings's Interest Expense was £-1.8 Mil. Its Operating Income was £6.7 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2013 )	/	Interest Expense (Q: Jun. 2013 )
	=	-1	*	6.73	/	-1.787
	=	3.77

The higher the ratio, the stronger the company's Financial Strength is.

Albemarle & Bond Holdings (LSE:ABM) 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 .

Albemarle & Bond Holdings Interest Coverage Related Terms

Thank you for viewing the detailed overview of Albemarle & Bond Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Albemarle & Bond Holdings (LSE:ABM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Albemarle & Bond Holdings PLC (LSE:ABM) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Website

http://www.albemarlebondplc.com

Albemarle & Bond Holdings PLC was incorporated on January 17, 1986. The Company is a holding company engaged in pawnbroking, retail jewellery sales, gold purchasing, unsecured lending, including cheque cashing and other financial services. It has approximately 230 stores and 1,000 employees. Operating under the two brands, Albemarle Bond and Herbert Brown, it provides its customers with a range of services including jewellery retailing, pawnbroking loans, gold purchasing and a range of unsecured loan products. The pawn loan is secured against jewellery for a maximum of six months. The customer can redeem their jewellery by repaying the loan and interest owing at any time without incurring penalties for early redemption. The Company provides short-term loans through three products, PayDay Advances, Speedloans, and Cheque Cashing. PayDay Advances offer customers short-term unsecured loans to meet their cash flow requirements until wages are received. Speedloans provide customers with immediately available installment loans over a longer term of between six and 18 months and Cheque Cashing provides access to their cash for customers who have received cheques. The Company offers a range of new and second hand jewellery. Herbert Brown offers a range of new, second hand and antique jewellery.