Management Consulting Group (LSE:MMC) Interest Coverage: 0 (At Loss) (As of Dec. 2019)


What is Management Consulting Group Interest Coverage?

Management Consulting Group LSE:MMC -30.09% Interest Coverage is 0 (At Loss) as of Dec. 2019. The stock has 3 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. Management Consulting Group's Operating Income for the six months ended in Dec. 2019 was £-2.70 Mil. Management Consulting Group's Interest Expense for the six months ended in Dec. 2019 was £0.31 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 Management Consulting Group's Interest Coverage or its related term are showing as below:


LSE:MMC's Interest Coverage is not ranked *
in the Business Services industry.
Industry Median: 12.98
* 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.

Management Consulting Group  (LSE:MMC) 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 .

Management Consulting Group Interest Coverage Related Terms

Management Consulting Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for Management Consulting 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.

Management Consulting Group Interest Coverage Chart

Management Consulting Group Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

Management Consulting Group Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19
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:MMC vs INFO, VRSK, EFX: Interest Coverage Comparison

For the Consulting Services subindustry, Management Consulting 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.

Management Consulting Group Interest Coverage vs Business Services Industry

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

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


Management Consulting 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.

Management Consulting Group's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, Management Consulting Group's Interest Expense was £-0.14 Mil. Its Operating Income was £-4.81 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.97 Mil.

Management Consulting Group did not have earnings to cover the interest expense.

Management Consulting Group's Interest Coverage for the quarter that ended in Dec. 2019 is calculated as

Here, for the six months ended in Dec. 2019, Management Consulting Group's Interest Expense was £0.31 Mil. Its Operating Income was £-2.70 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.97 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?
Management Consulting Group (LSE:MMC) has a Interest Coverage of 0 (At Loss) as of Dec. 2019. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Management Consulting Group and its competitors. Over the past decade, Management Consulting Group's Interest Coverage has ranged from 5.44 to 11.72.
Is Management Consulting Group's Interest Coverage too high?
Management Consulting Group's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 5.44 to a high of 11.72.
How does Management Consulting Group's Interest Coverage compare to INFO and VRSK?
Management Consulting Group's Interest Coverage of 0 (At Loss) can be compared against companies in the Business Services industry. The industry median Interest Coverage is 12.98. Historically, Management Consulting Group's own Interest Coverage has ranged from 5.44 to 11.72 over the past decade. 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 Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 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 Management Consulting Group and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Management Consulting 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 Management Consulting Group stock overvalued right now?
Based on GuruFocus' analysis, Management Consulting Group (LSE:MMC) is currently considered Possible Value Trap. 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 Management Consulting Group (LSE:MMC), the current Interest Coverage is 0 (At Loss) as of Dec. 2019. 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.

Management Consulting Group Business Description

Address 10 Warwick Lane, St. Paul’s House, 4th Floor, London, GBR, EC4M 7BP
Management Consulting Group PLC is engaged in providing professional services to various industries and sectors via the Proudfoot practice. Proudfoot, which is a professional service practice designs, implements and accelerates the operational transformation that realizes tomorrow's results today. The company serves various industries including manufacturing, natural resources, consumer packaged goods, transportation, automotive, building materials and heavy industry. It also provides market-specific local customization for Financial Services and Healthcare sectors. The company provides its services in the Americas, Europe among other regions, and generates a vast majority of its revenue from Europe.