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Zintel Group Limited (NZSE:ZIN) Interest Coverage : 23.58 (As of Sep. 2012)


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What is Zintel Group Limited 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. Zintel Group Limited's Operating Income for the six months ended in Sep. 2012 was NZ$0.45 Mil. Zintel Group Limited's Interest Expense for the six months ended in Sep. 2012 was NZ$-0.02 Mil. Zintel Group Limited's interest coverage for the quarter that ended in Sep. 2012 was 23.58. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Zintel Group Limited's Interest Coverage or its related term are showing as below:


NZSE:ZIN's Interest Coverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 4.49
* 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.


Zintel Group Limited Interest Coverage Historical Data

The historical data trend for Zintel Group Limited'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.

Zintel Group Limited Interest Coverage Chart

Zintel Group Limited Annual Data
Trend Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12
Interest Coverage
Get a 7-Day Free Trial 80.27 42.28 11.73 7.39 -

Zintel Group Limited Semi-Annual Data
Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only - 15.06 3.58 - 23.58

Competitive Comparison of Zintel Group Limited's Interest Coverage

For the Telecom Services subindustry, Zintel Group Limited'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.


Zintel Group Limited's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Zintel Group Limited's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Zintel Group Limited's Interest Coverage falls into.



Zintel Group Limited 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.

Zintel Group Limited's Interest Coverage for the fiscal year that ended in Mar. 2012 is calculated as

Here, for the fiscal year that ended in Mar. 2012, Zintel Group Limited's Interest Expense was NZ$-0.16 Mil. Its Operating Income was NZ$-1.19 Mil. And its Long-Term Debt & Capital Lease Obligation was NZ$2.42 Mil.

Zintel Group Limited did not have earnings to cover the interest expense.

Zintel Group Limited's Interest Coverage for the quarter that ended in Sep. 2012 is calculated as

Here, for the six months ended in Sep. 2012, Zintel Group Limited's Interest Expense was NZ$-0.02 Mil. Its Operating Income was NZ$0.45 Mil. And its Long-Term Debt & Capital Lease Obligation was NZ$0.00 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2012 )/Interest Expense (Q: Sep. 2012 )
=-1*0.448/-0.019
=23.58

* 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.


Zintel Group Limited  (NZSE:ZIN) 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 .


Zintel Group Limited Interest Coverage Related Terms

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Zintel Group Limited (NZSE:ZIN) Business Description

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