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MWB Business Exchange (LSE:MBE) Interest Coverage : 0 (At Loss) (As of Dec. 2012)


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What is MWB Business Exchange 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. MWB Business Exchange's Operating Income for the six months ended in Dec. 2012 was £-0.50 Mil. MWB Business Exchange's Interest Expense for the six months ended in Dec. 2012 was £-0.16 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 MWB Business Exchange's Interest Coverage or its related term are showing as below:


LSE:MBE's Interest Coverage is not ranked *
in the Business Services industry.
Industry Median: 13.47
* 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.


MWB Business Exchange Interest Coverage Historical Data

The historical data trend for MWB Business Exchange'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.

* Premium members only.

MWB Business Exchange Interest Coverage Chart

MWB Business Exchange Annual Data
Trend Jun05 Dec06 Dec07 Dec08 Dec09 Dec10 Jun11 Jun12
Interest Coverage
Get a 7-Day Free Trial 22.49 12.50 - - -

MWB Business Exchange Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec12
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.76 18.78 6.68 - -

Competitive Comparison of MWB Business Exchange's Interest Coverage

For the Specialty Business Services subindustry, MWB Business Exchange'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.


MWB Business Exchange's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, MWB Business Exchange's Interest Coverage distribution charts can be found below:

* The bar in red indicates where MWB Business Exchange's Interest Coverage falls into.



MWB Business Exchange 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.

MWB Business Exchange's Interest Coverage for the fiscal year that ended in Jun. 2012 is calculated as

Here, for the fiscal year that ended in Jun. 2012, MWB Business Exchange's Interest Expense was £-0.13 Mil. Its Operating Income was £-14.75 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.00 Mil.

MWB Business Exchange did not have earnings to cover the interest expense.

MWB Business Exchange's Interest Coverage for the quarter that ended in Dec. 2012 is calculated as

Here, for the six months ended in Dec. 2012, MWB Business Exchange's Interest Expense was £-0.16 Mil. Its Operating Income was £-0.50 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.00 Mil.

MWB Business Exchange 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.


MWB Business Exchange  (LSE:MBE) 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 .


MWB Business Exchange Interest Coverage Related Terms

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MWB Business Exchange (LSE:MBE) Business Description

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