SCCI (Shimmick Construction Company) Interest Coverage: 13.24 (As of Jun. 2015)


What is Shimmick Construction Company Interest Coverage?

Shimmick Construction Company SCCI Interest Coverage is 13.24 as of Jun. 2015.

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. Shimmick Construction Company's Operating Income for the six months ended in Jun. 2015 was $8.80 Mil. Shimmick Construction Company's Interest Expense for the six months ended in Jun. 2015 was $-0.67 Mil. Shimmick Construction Company's interest coverage for the quarter that ended in Jun. 2015 was 13.24. The higher the ratio, the stronger the company's financial strength is.

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


SCCI's Interest Coverage is not ranked *
in the Construction industry.
Industry Median: 7.865
* 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.

Shimmick Construction Company  (NAS:SCCI) 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 .

Shimmick Construction Company Interest Coverage Related Terms

Shimmick Construction Company Interest Coverage Historical Data

* Premium members only.

The historical data trend for Shimmick Construction Company'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.

Shimmick Construction Company Interest Coverage Chart

Shimmick Construction Company Annual Data
Trend Dec13 Dec14
Interest Coverage
0.00 7.58

Shimmick Construction Company Semi-Annual Data
Dec13 Jun14 Dec14 Jun15
Interest Coverage N/A 5.62 9.01 13.24

SCCI vs TSSI, SWMM, SFHI: Interest Coverage Comparison

For the Engineering & Construction subindustry, Shimmick Construction Company'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.

Shimmick Construction Company Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Shimmick Construction Company's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shimmick Construction Company's Interest Coverage falls into.


Shimmick Construction Company 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.

Shimmick Construction Company'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, Shimmick Construction Company's Interest Expense was $-1.42 Mil. Its Operating Income was $10.80 Mil. And its Long-Term Debt & Capital Lease Obligation was $24.12 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2014 )/Interest Expense (A: Dec. 2014 )
=-1*10.796/-1.424
=7.58

Shimmick Construction Company's Interest Coverage for the quarter that ended in Jun. 2015 is calculated as

Here, for the six months ended in Jun. 2015, Shimmick Construction Company's Interest Expense was $-0.67 Mil. Its Operating Income was $8.80 Mil. And its Long-Term Debt & Capital Lease Obligation was $25.25 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2015 )/Interest Expense (Q: Jun. 2015 )
=-1*8.802/-0.665
=13.24

* 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 13.24 mean?
Shimmick Construction Company (SCCI) has a Interest Coverage of 13.24 as of Jun. 2015. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Shimmick Construction Company and its competitors.
Is Shimmick Construction Company's Interest Coverage too high?
Shimmick Construction Company's current Interest Coverage is 13.24. The Construction industry median Interest Coverage is 7.87. Shimmick Construction Company's value of 13.24 is 68.3% above this industry median.
How does Shimmick Construction Company's Interest Coverage compare to TSSI and SWMM?
Shimmick Construction Company's Interest Coverage of 13.24 can be compared against companies in the Construction industry. The industry median Interest Coverage is 7.87. Shimmick Construction Company's value of 13.24 is 68.3% above this benchmark. 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 Construction company?
The median Interest Coverage among Construction companies is 7.87, based on 1,354 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. Shimmick Construction Company's current Interest Coverage of 13.24 is 68.3% above the industry median. 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 Shimmick Construction Company and its competitors. For the Construction industry, the median Interest Coverage is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shimmick Construction Company's current Interest Coverage is 13.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shimmick Construction Company stock overvalued right now?
Shimmick Construction Company (SCCI) has a current Interest Coverage of 13.24. The current Interest Coverage is 13.24 and 68.3% above the Construction industry median of 7.87. 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 Shimmick Construction Company (SCCI), the current Interest Coverage is 13.24 as of Jun. 2015. 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.

Shimmick Construction Company Business Description

Shimmick Construction Company Inc is a heavy civil construction company founded in 1990. The Company is engaged in construction activities in the western United States, with operations in California. The Company offers general construction, construction management, and design-build services to federal, state, and local public agencies and private customers in California and the Western United States. The Company operates in two segments including construction Projects and Construction Materials. The Construction Projects segment performs construction projects including new construction and improvement of streets, roads, highways, bridges, site work, underground, power-related facilities, utilities and other infrastructure projects. The Construction Materials segment mines and processes aggregates and operates plants that produce construction materials for internal use and for sale to third parties. The Company's customers include Caltrans, City of San Francisco, Port of Long Beach, Port of Los Angeles, City of Los Angeles, LA MTA, BART, VTA, and the Metropolitan Water District of Southern California (MWD). The Company faces competition from competitors including Balfour Beatty plc, Barnard Construction Company, Inc., Dragados S.A., Flatiron Construction Corp., Fluor Corporation, Granite Construction Incorporated, Kiewit Corporation, Obayashi Corporation, Skanska AB, Traylor Bros., Inc., Tutor Perini Corporation, and Walsh Construction Co. The Company's business is subject to various federal, state and local laws and regulations relating to the environment, including those relating to discharges to air, water and land, the handling and disposal of solid and hazardous waste, the handling of underground storage tanks and the cleanup of properties affected by hazardous substances.