Transcom WorldWide (LTS:0GO2) Interest Coverage : 14.14 (As of Sep. 2014)

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What is Transcom WorldWide 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. Transcom WorldWide's Operating Income for the three months ended in Sep. 2014 was kr48 Mil. Transcom WorldWide's Interest Expense for the three months ended in Sep. 2014 was kr-3 Mil. Transcom WorldWide's interest coverage for the quarter that ended in Sep. 2014 was 14.14. The higher the ratio, the stronger the company's financial strength is.

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

LTS:0GO2's Interest Coverage is not ranked ^*
in the Business Services industry.
Industry Median: 13.69
* 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.

Transcom WorldWide Interest Coverage Historical Data

The historical data trend for Transcom WorldWide'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.

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Transcom WorldWide Interest Coverage Chart

Transcom WorldWide Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Interest Coverage

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11.53

N/A

Transcom WorldWide Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
Interest Coverage	Get a 7-Day Free Trial															2.33	N/A	4.15	2.47	14.14

Competitive Comparison of Transcom WorldWide's Interest Coverage

For the Specialty Business Services subindustry, Transcom WorldWide'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.

Transcom WorldWide's Interest Coverage Distribution in the Business Services Industry

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

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

Transcom WorldWide 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.

Transcom WorldWide's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, Transcom WorldWide's Interest Expense was kr0 Mil. Its Operating Income was kr-49 Mil. And its Long-Term Debt & Capital Lease Obligation was kr0 Mil.

GuruFocus does not calculate Transcom WorldWide's interest coverage with the available data.

Transcom WorldWide's Interest Coverage for the quarter that ended in Sep. 2014 is calculated as

Here, for the three months ended in Sep. 2014, Transcom WorldWide's Interest Expense was kr-3 Mil. Its Operating Income was kr48 Mil. And its Long-Term Debt & Capital Lease Obligation was kr493 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2014 )	/	Interest Expense (Q: Sep. 2014 )
	=	-1	*	48.441	/	-3.427
	=	14.14

The higher the ratio, the stronger the company's Financial Strength is.

Transcom WorldWide (LTS:0GO2) 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 .

Transcom WorldWide Interest Coverage Related Terms

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Transcom WorldWide Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Transcom WorldWide SA (LTS:0GO2) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.transcom.com

Transcom WorldWide SA was established in 1995. Together with its subsidiaries provide multi-language customer relationship management products and services ('CRM') and credit management services ('CMS'), including customer help lines and other telephone-based marketing and customer service programs ('teleservices') to clients in customer-intensive industries. The Group has two primary sources of revenues being its CRM (Customer Relationship Management) and its CMS (Credit Management Services) businesses. In relation to its CRM business, revenue mainly arise from call services operations. In relation to its CMS business, revenue mainly arise from fees and commissions generated from the collection of receivables on behalf of customers. The Company's operating segments are North Europe CRM (Denmark, Netherlands, Norway, Sweden, Estonia, Latvia and Lithuania), Central & South Europe CRM (Austria, Belgium, Croatia, Germany, Hungary, Italy, luxembourg, Poland, Slovakia, Switzerland, and Tunisia), Iberia & latam CRM (Chile, Peru, Portugal and Spain), North America & Asia Pacific CRM (Canada, the Philippines, USA, the United Kingdom and Australia), and CMS (Austria, the Czech Republic, the United Kingdom, Poland, Denmark, Norway and Sweden).

Transcom WorldWide Headlines

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