DDD Group (LSE:DDD) Interest Coverage: 0 (At Loss) (As of Dec. 2015)


What is DDD Group Interest Coverage?

DDD Group LSE:DDD -7.69% Interest Coverage is 0 (At Loss) as of Dec. 2015. The stock has 5 warning signs investors should review.

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. DDD Group's Operating Income for the six months ended in Dec. 2015 was £-1.17 Mil. DDD Group's Interest Expense for the six months ended in Dec. 2015 was £0.01 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


LSE:DDD's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 24.78
* 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.

DDD Group  (LSE:DDD) 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 .

DDD Group Interest Coverage Related Terms

DDD Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for DDD Group'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.

DDD Group Interest Coverage Chart

DDD Group Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only No Debt No Debt No Debt 0.00 0.00

DDD Group Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15
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 0.00 0.00 0.00

LSE:DDD vs RETC, AGGG, LAAB: Interest Coverage Comparison

For the Software - Application subindustry, DDD Group'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.

DDD Group Interest Coverage vs Software Industry

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

* The bar in red indicates where DDD Group's Interest Coverage falls into.


DDD Group 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.

DDD Group's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, DDD Group's Interest Expense was £-0.06 Mil. Its Operating Income was £-2.06 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.38 Mil.

DDD Group did not have earnings to cover the interest expense.

DDD Group's Interest Coverage for the quarter that ended in Dec. 2015 is calculated as

Here, for the six months ended in Dec. 2015, DDD Group's Interest Expense was £0.01 Mil. Its Operating Income was £-1.17 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.38 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 0 (At Loss) mean?
DDD Group (LSE:DDD) has a Interest Coverage of 0 (At Loss) as of Dec. 2015. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on DDD Group and its competitors.
Is DDD Group's Interest Coverage too high?
DDD Group's current Interest Coverage is 0 (At Loss).
How does DDD Group's Interest Coverage compare to RETC and AGGG?
DDD Group's Interest Coverage of 0 (At Loss) can be compared against companies in the Software industry. The industry median Interest Coverage is 24.78. 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 24.78, 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 DDD Group and its competitors. For the Software industry, the median Interest Coverage is 24.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DDD Group's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DDD Group stock overvalued right now?
DDD Group (LSE:DDD) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). 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 DDD Group (LSE:DDD), the current Interest Coverage is 0 (At Loss) as of Dec. 2015. 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.

DDD Group Business Description

DDD Group PLC is a developer and licensor of intellectual property in the advanced imaging market for consumer entertainment products. The company offers intelligent video software solutions for the video chat, conferencing, game casting, webcasting and social photography markets. It also delivers Stereoscopic 3D displays which convert photos, videos and games from 2D to 3D available for televisions, laptops, PC monitors, tablets and mobile phones. The company's intelligent video solutions include real-time identification of the user from their webcam image that allows the user's immediate background to be removed and replaced with alternate images.