Cecon ASA (LTS:0JI4) Interest Coverage : 4.41 (As of Sep. 2014)

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What is Cecon ASA 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. Cecon ASA's Operating Income for the three months ended in Sep. 2014 was kr101.4 Mil. Cecon ASA's Interest Expense for the three months ended in Sep. 2014 was kr-23.0 Mil. Cecon ASA's interest coverage for the quarter that ended in Sep. 2014 was 4.41. The higher the ratio, the stronger the company's financial strength is.

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

LTS:0JI4's Interest Coverage is not ranked ^*
in the Oil & Gas industry.
Industry Median: 6.62
* 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.

Cecon ASA Interest Coverage Historical Data

The historical data trend for Cecon ASA'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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Cecon ASA Interest Coverage Chart

Cecon ASA Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Interest Coverage

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Cecon ASA 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															-	-	-	-	4.41

Competitive Comparison of Cecon ASA's Interest Coverage

For the Oil & Gas Equipment & Services subindustry, Cecon ASA'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.

Cecon ASA's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Cecon ASA's Interest Coverage distribution charts can be found below:

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

Cecon ASA 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.

Cecon ASA'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, Cecon ASA's Interest Expense was kr0.0 Mil. Its Operating Income was kr-166.6 Mil. And its Long-Term Debt & Capital Lease Obligation was kr750.8 Mil.

GuruFocus does not calculate Cecon ASA's interest coverage with the available data.

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

Here, for the three months ended in Sep. 2014, Cecon ASA's Interest Expense was kr-23.0 Mil. Its Operating Income was kr101.4 Mil. And its Long-Term Debt & Capital Lease Obligation was kr637.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2014 )	/	Interest Expense (Q: Sep. 2014 )
	=	-1	*	101.414	/	-22.972
	=	4.41

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

Cecon ASA (LTS:0JI4) 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 .

Cecon ASA Interest Coverage Related Terms

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Cecon ASA (LTS:0JI4) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Cecon ASA (LTS:0JI4) » Definitions » Interest Coverage

Comparable Companies

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Address

Website

http://www.cecon.no

Cecon Ord undertakes engineering and mobilization contracts of sub-sea installation of oil pipelines, cables, and umbilicals in West-Africa and on the Norwegian continental shelf. It is also engaged in repair and maintenance services.

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