LTRE (Learning Tree International) Interest Coverage: 13.40 (As of Sep. 2018)


What is Learning Tree International Interest Coverage?

Learning Tree International LTRE Interest Coverage is 13.40 as of Sep. 2018.

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. Learning Tree International's Operating Income for the three months ended in Sep. 2018 was $0.54 Mil. Learning Tree International's Interest Expense for the three months ended in Sep. 2018 was $-0.04 Mil. Learning Tree International's interest coverage for the quarter that ended in Sep. 2018 was 13.40. The higher the ratio, the stronger the company's financial strength is.

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


LTRE's Interest Coverage is not ranked *
in the Education industry.
Industry Median: 12.93
* 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.

Learning Tree International  (OTCPK:LTRE) 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 .

Learning Tree International Interest Coverage Related Terms

Learning Tree International Interest Coverage Historical Data

* Premium members only.

The historical data trend for Learning Tree International'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.

Learning Tree International Interest Coverage Chart

Learning Tree International Annual Data
Trend Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only No Debt No Debt N/A 0.00 0.00

Learning Tree International Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 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 260.43 64.78 0.00 0.00 13.40

LTRE vs WAFU: Interest Coverage Comparison

For the Education & Training Services subindustry, Learning Tree International'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.

Learning Tree International Interest Coverage vs Education Industry

For the Education industry and Consumer Defensive sector, Learning Tree International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Learning Tree International's Interest Coverage falls into.


Learning Tree International 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.

Learning Tree International's Interest Coverage for the fiscal year that ended in Sep. 2018 is calculated as

Here, for the fiscal year that ended in Sep. 2018, Learning Tree International's Interest Expense was $-0.10 Mil. Its Operating Income was $-1.62 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.28 Mil.

Learning Tree International did not have earnings to cover the interest expense.

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

Here, for the three months ended in Sep. 2018, Learning Tree International's Interest Expense was $-0.04 Mil. Its Operating Income was $0.54 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.28 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2018 )/Interest Expense (Q: Sep. 2018 )
=-1*0.536/-0.04
=13.40

* 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 13.40 mean?
Learning Tree International (LTRE) has a Interest Coverage of 13.40 as of Sep. 2018. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Learning Tree International and its competitors.
Is Learning Tree International's Interest Coverage too high?
Learning Tree International's current Interest Coverage is 13.40. The Education industry median Interest Coverage is 12.93. Learning Tree International's value of 13.40 is 3.6% above this industry median.
How does Learning Tree International's Interest Coverage compare to WAFU?
Learning Tree International's Interest Coverage of 13.40 can be compared against companies in the Education industry. The industry median Interest Coverage is 12.93. Learning Tree International's value of 13.40 is 3.6% above this benchmark. 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 Education company?
The median Interest Coverage among Education companies is 12.93, based on 197 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. Learning Tree International's current Interest Coverage of 13.40 is 3.6% above the industry median. 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 Learning Tree International and its competitors. For the Education industry, the median Interest Coverage is 12.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Learning Tree International's current Interest Coverage is 13.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Learning Tree International stock overvalued right now?
Learning Tree International (LTRE) has a current Interest Coverage of 13.40. The current Interest Coverage is 13.40 and 3.6% above the Education industry median of 12.93. 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 Learning Tree International (LTRE), the current Interest Coverage is 13.40 as of Sep. 2018. 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.

Learning Tree International Business Description

Address 13650 Dulles Technology Drive, Suite 400, Herndon, VA, USA, 20171
Learning Tree International Inc provides education and training in information technology. Its proprietary library of course titles focuses on client-server systems, computer networks, operating systems, databases, programming, graphical user interfaces, object-oriented technology, and IT management. Its courses are offered in hotels, conference facilities, and customer sites.