Flowgroup (LSE:FLOW) Interest Coverage: 0 (At Loss) (As of Jun. 2017)


What is Flowgroup Interest Coverage?

Flowgroup LSE:FLOW Interest Coverage is 0 (At Loss) as of Jun. 2017. The stock has 4 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. Flowgroup's Operating Income for the six months ended in Jun. 2017 was £-11.0 Mil. Flowgroup's Interest Expense for the six months ended in Jun. 2017 was £-0.9 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 Flowgroup's Interest Coverage or its related term are showing as below:


LSE:FLOW's Interest Coverage is not ranked *
in the Utilities - Regulated industry.
Industry Median: 3.78
* 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.

Flowgroup  (LSE:FLOW) 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 .

Flowgroup Interest Coverage Related Terms

Flowgroup Interest Coverage Historical Data

* Premium members only.

The historical data trend for Flowgroup'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.

Flowgroup Interest Coverage Chart

Flowgroup Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 No Debt 0.00 0.00 0.00

Flowgroup Semi-Annual Data
Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
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 0.00 0.00 0.00 0.00 0.00

LSE:FLOW vs BLSP, PRHL, ARAO: Interest Coverage Comparison

For the Utilities - Diversified subindustry, Flowgroup'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.

Flowgroup Interest Coverage vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Flowgroup's Interest Coverage distribution charts can be found below:

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


Flowgroup 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.

Flowgroup's Interest Coverage for the fiscal year that ended in Dec. 2016 is calculated as

Here, for the fiscal year that ended in Dec. 2016, Flowgroup's Interest Expense was £-0.1 Mil. Its Operating Income was £-45.6 Mil. And its Long-Term Debt & Capital Lease Obligation was £2.2 Mil.

Flowgroup did not have earnings to cover the interest expense.

Flowgroup's Interest Coverage for the quarter that ended in Jun. 2017 is calculated as

Here, for the six months ended in Jun. 2017, Flowgroup's Interest Expense was £-0.9 Mil. Its Operating Income was £-11.0 Mil. And its Long-Term Debt & Capital Lease Obligation was £16.6 Mil.

Flowgroup did not have earnings to cover the interest expense.

* 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?
Flowgroup (LSE:FLOW) has a Interest Coverage of 0 (At Loss) as of Jun. 2017. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Flowgroup and its competitors.
Is Flowgroup's Interest Coverage too high?
Flowgroup's current Interest Coverage is 0 (At Loss).
How does Flowgroup's Interest Coverage compare to BLSP and PRHL?
Flowgroup's Interest Coverage of 0 (At Loss) can be compared against companies in the Utilities - Regulated industry. The industry median Interest Coverage is 3.78. 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 an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 447 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 Flowgroup and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Flowgroup'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 Flowgroup stock overvalued right now?
Flowgroup (LSE:FLOW) 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 Flowgroup (LSE:FLOW), the current Interest Coverage is 0 (At Loss) as of Jun. 2017. 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.

Flowgroup Business Description

Flowgroup PLC is the UK-based an energy company. The company and its subsidiaries supply energy and provide a range of energy technologies and services. The group's operating segments comprise Flow Products, Flow Battery, and Flow Energy. Flow Products Division supplies products for distributed generation and load shifting; Flow Battery division provides energy supply and services, and Flow Energy segment provides compressed air battery products.