REXAM (REXMY) Interest Coverage : 5.03 (As of Dec. 2015)

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What is REXAM 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. REXAM's Operating Income for the six months ended in Dec. 2015 was $278 Mil. REXAM's Interest Expense for the six months ended in Dec. 2015 was $-55 Mil. REXAM's interest coverage for the quarter that ended in Dec. 2015 was 5.03. The higher the ratio, the stronger the company's financial strength is.

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

REXMY's Interest Coverage is not ranked ^*
in the Packaging & Containers industry.
Industry Median: 6.995
* 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.

REXAM Interest Coverage Historical Data

The historical data trend for REXAM'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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REXAM Interest Coverage Chart

REXAM Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

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4.01

3.94

4.44

5.51

4.16

REXAM Semi-Annual Data
	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15
Interest Coverage	Get a 7-Day Free Trial															4.90	5.44	5.57	3.18	5.03

Competitive Comparison of REXAM's Interest Coverage

For the Packaging & Containers subindustry, REXAM'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.

REXAM's Interest Coverage Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, REXAM's Interest Coverage distribution charts can be found below:

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

REXAM 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.

REXAM's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, REXAM's Interest Expense was $-105 Mil. Its Operating Income was $436 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,659 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	435.629	/	-104.79
	=	4.16

REXAM's Interest Coverage for the quarter that ended in Dec. 2015 is calculated as

Here, for the six months ended in Dec. 2015, REXAM's Interest Expense was $-55 Mil. Its Operating Income was $278 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,659 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2015 )	/	Interest Expense (Q: Dec. 2015 )
	=	-1	*	278.443	/	-55.389
	=	5.03

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

REXAM (OTCPK:REXMY) 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 .

REXAM Interest Coverage Related Terms

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

REXAM (REXMY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » REXAM PLC (OTCPK:REXMY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.rexam.com

REXAM PLC was incorporated on July 13, 1923. It is a consumer packaging group and a beverage can maker. The Company is a manufacturer of beverage cans, the majority of which are made of aluminium. It makes all sorts of cans, in different shapes and sizes with different finishes, decorations and ends. It is based in the UK, and has factories across five continents. It is organised into four operating segments for Beverage Cans based on the geographical locations of Europe, AMEA (Africa, Middle East & Asia), North America and South America. For external reporting, the four operating segments for Beverage Cans are combined into two reportable segments, Americas and Europe & Rest of World. It makes a broad range of can sizes for products such as carbonated soft drinks, beer, energy drinks and other drinks categories. Beverage Cans comprise aluminium and steel cans for a variety of beverages including carbonated soft drinks, beer and energy drinks. The Company's customers include many of the world's favourite brands.

REXAM (REXMY) Headlines

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Bernard Horn Comments on Rexam

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