Acino Holding AG (LTS:0QM8) Interest Coverage: 0 (At Loss) (As of Dec. 2013)

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What is Acino Holding AG Interest Coverage?

Acino Holding AG LTS:0QM8 Interest Coverage is 0 (At Loss) as of Dec. 2013.

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. Acino Holding AG's Operating Income for the six months ended in Dec. 2013 was CHF-18.33 Mil. Acino Holding AG's Interest Expense for the six months ended in Dec. 2013 was CHF-5.68 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


LTS:0QM8's Interest Coverage is not ranked *
in the Drug Manufacturers industry.
Industry Median: 12.75
* 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.


Acino Holding AG  (LTS:0QM8) 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 .


Acino Holding AG Interest Coverage Related Terms


Acino Holding AG Interest Coverage Historical Data

* Premium members only.

The historical data trend for Acino Holding AG'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.

Acino Holding AG Interest Coverage Chart

Acino Holding AG Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.11 0.00 1.47 2.57 0.00

Acino Holding AG Semi-Annual Data
Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 15.11 0.00 1.47 2.57 0.00

Acino Holding AG Interest Coverage Competitor Comparison

For the Drug Manufacturers - General subindustry, Acino Holding AG'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.


Acino Holding AG Interest Coverage vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Acino Holding AG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Acino Holding AG's Interest Coverage falls into.



Acino Holding AG 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.

Acino Holding AG'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, Acino Holding AG's Interest Expense was CHF-5.68 Mil. Its Operating Income was CHF-18.33 Mil. And its Long-Term Debt & Capital Lease Obligation was CHF117.35 Mil.

Acino Holding AG did not have earnings to cover the interest expense.

Acino Holding AG's Interest Coverage for the quarter that ended in Dec. 2013 is calculated as

Here, for the six months ended in Dec. 2013, Acino Holding AG's Interest Expense was CHF-5.68 Mil. Its Operating Income was CHF-18.33 Mil. And its Long-Term Debt & Capital Lease Obligation was CHF117.35 Mil.

Acino Holding AG did not have earnings to cover the interest expense.

* 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 0 (At Loss) mean?
Acino Holding AG (LTS:0QM8) has a Interest Coverage of 0 (At Loss) as of Dec. 2013. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Acino Holding AG and its competitors.
Is Acino Holding AG's Interest Coverage too high?
Acino Holding AG's current Interest Coverage is 0 (At Loss).
How does Acino Holding AG's Interest Coverage compare to competitors?
Acino Holding AG's Interest Coverage of 0 (At Loss) can be compared against companies in the Drug Manufacturers industry. The industry median Interest Coverage is 12.75. 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 a Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.75, based on 687 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. 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 Acino Holding AG and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Acino Holding AG's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Acino Holding AG stock overvalued right now?
Acino Holding AG (LTS:0QM8) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). 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 Acino Holding AG (LTS:0QM8), the current Interest Coverage is 0 (At Loss) as of Dec. 2013. 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.

Acino Holding AG Business Description

Acino Holding AG is a Switzerland-based company engaged in the pharmaceutical industry. The Company develops, manufactures, and markets pharmaceuticals in novel drug delivery forms internationally. It is divided into four segments Business to Consumer (BtC); Business to Business (BtB); Technology marketing (TM); and Production (Prod). The BtC segment comprises all direct marketing activities. Under the company's "Acino Switzerland" brand and, with the promise of Swiss quality, the company sells its products in emerging markets around the globe. This reporting segment includes the business purchased from Mepha/Cephalon in the Middle East, Africa, Latin America and Asia. The BtB segment comprises Acino's business with its internally developed products, for which the company also owns the intellectual property rights. Acino develops and produces high-quality medicines with proven active ingredients and modern drug delivery systems and grants licenses for them to leading pharmaceutical and generic pharmaceutical companies worldwide. The technology marketing segment comprises a broad spectrum of fully integrated contract services, including procurement, contract development, production and packaging for companies in the life sciences industry. On behalf of these customers, Acino develops a comprehensive product pipeline on the basis of its special technological know-how. This includes both new types of medicines as well as projects with innovative drug delivery systems for established active ingredients. The production segment is responsible for the manufacturing of products and the supplying of the other three segments, and generates turnover through the reimbursement of its services. The manufacturing costs of products are credited to the production segment at standard prices along with remuneration in the form of a mark-up for materials and production costs.