Premier Farnell (LSE:PFLB.PFD) Interest Coverage : 6.35 (As of Jul. 2015)

Premier Farnell Interest Coverage Chart

Premier Farnell Annual Data
	Trend	Jan01	Jan05	Jan06	Jan07	Jan10	Jan11	Jan12	Jan13	Jan14	Jan15
Interest Coverage		Get a 7-Day Free Trial					8.90	9.87	5.41	7.44	7.84

Premier Farnell Semi-Annual Data
	Jan05	Jul05	Jan06	Jul06	Jan07	Jul07	Jul08	Jul09	Jan10	Jul10	Jan11	Jul11	Jan12	Jul12	Jan13	Jul13	Jan14	Jul14	Jan15	Jul15
Interest Coverage	Get a 7-Day Free Trial															6.28	9.32	8.29	7.41	6.35

Competitive Comparison of Premier Farnell's Interest Coverage

For the Electronics & Computer Distribution subindustry, Premier Farnell'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.

Premier Farnell's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Premier Farnell's Interest Coverage distribution charts can be found below:

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

Premier Farnell 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Premier Farnell's Interest Coverage for the fiscal year that ended in Jan. 2015 is calculated as

Here, for the fiscal year that ended in Jan. 2015, Premier Farnell's Interest Expense was £-10.60 Mil. Its Operating Income was £83.10 Mil. And its Long-Term Debt & Capital Lease Obligation was £296.30 Mil.

Premier Farnell's Interest Coverage for the quarter that ended in Jul. 2015 is calculated as

Here, for the six months ended in Jul. 2015, Premier Farnell's Interest Expense was £-6.00 Mil. Its Operating Income was £38.10 Mil. And its Long-Term Debt & Capital Lease Obligation was £229.40 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.

Premier Farnell  (LSE:PFLB.PFD) 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 .

Premier Farnell Interest Coverage Related Terms

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Premier Farnell Business Description