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RhythmOne (LSE:RTHM) Interest Coverage : 3.68 (As of Sep. 2018)


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What is RhythmOne 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. RhythmOne's Operating Income for the six months ended in Sep. 2018 was £2.1 Mil. RhythmOne's Interest Expense for the six months ended in Sep. 2018 was £-0.6 Mil. RhythmOne's interest coverage for the quarter that ended in Sep. 2018 was 3.68. The higher the ratio, the stronger the company's financial strength is.

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


LSE:RTHM's Interest Coverage is not ranked *
in the Interactive Media industry.
Industry Median: 36.9
* 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.


RhythmOne Interest Coverage Historical Data

The historical data trend for RhythmOne'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.

RhythmOne Interest Coverage Chart

RhythmOne Annual Data
Trend Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only No Debt - - - -

RhythmOne Semi-Annual Data
Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18
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 - - - - 3.68

Competitive Comparison of RhythmOne's Interest Coverage

For the Internet Content & Information subindustry, RhythmOne'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.


RhythmOne's Interest Coverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, RhythmOne's Interest Coverage distribution charts can be found below:

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



RhythmOne 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.

RhythmOne's Interest Coverage for the fiscal year that ended in Mar. 2018 is calculated as

Here, for the fiscal year that ended in Mar. 2018, RhythmOne's Interest Expense was £-0.4 Mil. Its Operating Income was £-4.6 Mil. And its Long-Term Debt & Capital Lease Obligation was £9.2 Mil.

RhythmOne did not have earnings to cover the interest expense.

RhythmOne's Interest Coverage for the quarter that ended in Sep. 2018 is calculated as

Here, for the six months ended in Sep. 2018, RhythmOne's Interest Expense was £-0.6 Mil. Its Operating Income was £2.1 Mil. And its Long-Term Debt & Capital Lease Obligation was £7.3 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2018 )/Interest Expense (Q: Sep. 2018 )
=-1*2.085/-0.567
=3.68

* 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.


RhythmOne  (LSE:RTHM) 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 .


RhythmOne Interest Coverage Related Terms

Thank you for viewing the detailed overview of RhythmOne's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


RhythmOne (LSE:RTHM) Business Description

Traded in Other Exchanges
N/A
Address
601 Montgomery Street, Suite 1600, San Francisco, CA, USA, 94111
RhythmOne PLC is a technology media company that connects consumers and brands through premium content online. The principal activity of the company comprises the provision of video search and advertising services on the internet. It has only one reportable segment, namely Online Advertising. The majority of the company's revenue is generated from brand and performance advertising. The company offers RhythmMax, an integrated programmatic trading platform.

RhythmOne (LSE:RTHM) Headlines

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