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Perfect World Co (MEX:PWRDN) Interest Coverage : No Debt (1) (As of Dec. 2014)


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What is Perfect World Co 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. Perfect World Co's Operating Income for the three months ended in Dec. 2014 was MXN0.00 Mil. Perfect World Co's Interest Expense for the three months ended in Dec. 2014 was MXN0.00 Mil. Perfect World Co has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) 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.

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


MEX:PWRDN's Interest Coverage is not ranked *
in the Interactive Media industry.
Industry Median: 28.71
* 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.


Perfect World Co Interest Coverage Historical Data

The historical data trend for Perfect World Co'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.

Perfect World Co Interest Coverage Chart

Perfect World Co Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only No Debt 154.90 25.88 44.03 27.09

Perfect World Co Quarterly Data
Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14
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 13.93 271.21 34.59 - No Debt

Competitive Comparison of Perfect World Co's Interest Coverage

For the Electronic Gaming & Multimedia subindustry, Perfect World Co'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.


Perfect World Co's Interest Coverage Distribution in the Interactive Media Industry

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

* The bar in red indicates where Perfect World Co's Interest Coverage falls into.


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Perfect World Co 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.

Perfect World Co's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, Perfect World Co's Interest Expense was MXN-30.00 Mil. Its Operating Income was MXN812.58 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN0.00 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2014 )/Interest Expense (A: Dec. 2014 )
=-1*812.582/-29.998
=27.09

Perfect World Co's Interest Coverage for the quarter that ended in Dec. 2014 is calculated as

Here, for the three months ended in Dec. 2014, Perfect World Co's Interest Expense was MXN0.00 Mil. Its Operating Income was MXN0.00 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN0.00 Mil.

Perfect World Co had no debt (1).

* 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.


Perfect World Co  (MEX:PWRDN) 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 .


Perfect World Co Interest Coverage Related Terms

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


Perfect World Co Business Description

Traded in Other Exchanges
N/A
Address
Perfect World Co Ltd was incorporated in the Cayman Islands on June 28, 2006. In July 2007, the Company completed its initial public offering. It is engaged in the research, development, operation and licensing of online games. Its operations and geographic markets are in the People's Republic of China, United States of America, Europe, Japan and Southeast Asia Region. The Company develops online games based on its proprietary game engines and game development platforms. Since 2006, it has launched in China a number of self-developed MMORPGs, namely, Perfect World, Legend of Martial Arts, Perfect World II, Zhu Xian, Chi Bi, Pocketpet Journey West, Battle of the Immortals, Fantasy Zhu Xian, Forsaken World, Dragon Excalibur, Empire of the Immortals, Heaven Sword and Dragon Saber and Return of the Condor Heroes, an online casual game, Hot Dance Party, as well as several web games. Currently, it operates, in Japan, a number of its own games and some games licensed from other developers through C&C Media, in Southeast Asia region, several of its own games through PW Hong Kong and in Korea, one of its own games through NGL. In addition to operating online games, the Company also generated revenues from selling its pay-per-install games, Torchlight and Torchlight 2, developed by its majority-owned subsidiary Runic Games based in the U.S. The Company is involved in film, television and other related businesses. Competitors for online game developers and operators in China, including Tencent, NetEase, Shanda Games, Changyou, Giant Interactive, Guangyu Huaxia, NetDragon, Kingsoft, Tiancity, Kylin and The9; and other competitors, including Internet portal operators in China, and game developers and operators. Its online game and online reading services and related content on its websites is subject to various PRC laws and regulations relating to the telecommunications industry, Internet and online games, and regulated by various government authorities.

Perfect World Co Headlines

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