ARM Cement (NAI:ARM) Interest Coverage: N/A (As of Dec. 2017)

ARM Cement  (NAI:ARM) 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 .

ARM Cement Interest Coverage Related Terms

The historical data trend for ARM Cement'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.

ARM Cement Interest Coverage Chart

ARM Cement Annual Data
	Trend	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17
Interest Coverage		Get a 7-Day Free Trial					5.15	11.10	1.09	0.00	0.00

ARM Cement Semi-Annual Data
	Dec08	Dec09	Dec10	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17
Interest Coverage	Get a 7-Day Free Trial											0.56	No Debt	N/A	No Debt	N/A

ARM Cement Interest Coverage Competitor Comparison

For the Building Materials subindustry, ARM Cement'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.

ARM Cement Interest Coverage vs Building Materials Industry

For the Building Materials industry and Basic Materials sector, ARM Cement's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ARM Cement's Interest Coverage falls into.

ARM Cement 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

ARM Cement's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, ARM Cement's Interest Expense was KES-1,736 Mil. Its Operating Income was KES-4,264 Mil. And its Long-Term Debt & Capital Lease Obligation was KES1,410 Mil.

ARM Cement's Interest Coverage for the quarter that ended in Dec. 2017 is calculated as

Here, for the six months ended in Dec. 2017, ARM Cement's Interest Expense was KES0 Mil. Its Operating Income was KES-9,612 Mil. And its Long-Term Debt & Capital Lease Obligation was KES1,410 Mil.

* 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.

ARM Cement Business Description