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Strasbaugh (Strasbaugh) Interest Coverage : 86.40 (As of Jun. 2010)


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What is Strasbaugh 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. Strasbaugh's Operating Income for the three months ended in Jun. 2010 was $0.43 Mil. Strasbaugh's Interest Expense for the three months ended in Jun. 2010 was $-0.01 Mil. Strasbaugh's interest coverage for the quarter that ended in Jun. 2010 was 86.40. The higher the ratio, the stronger the company's financial strength is.

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


STRB's Interest Coverage is not ranked *
in the Semiconductors industry.
Industry Median: 20.035
* 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.


Strasbaugh Interest Coverage Historical Data

The historical data trend for Strasbaugh'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.

Strasbaugh Interest Coverage Chart

Strasbaugh Annual Data
Trend Mar98 Mar99 Mar00 Mar01 Mar02 Mar03 Mar04 Dec07 Dec08 Dec09
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A No Debt No Debt - -

Strasbaugh Quarterly Data
Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10
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 - - 135.20 79.00 86.40

Competitive Comparison of Strasbaugh's Interest Coverage

For the Semiconductors subindustry, Strasbaugh'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.


Strasbaugh's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Strasbaugh's Interest Coverage distribution charts can be found below:

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



Strasbaugh 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.

Strasbaugh's Interest Coverage for the fiscal year that ended in Dec. 2009 is calculated as

Here, for the fiscal year that ended in Dec. 2009, Strasbaugh's Interest Expense was $-0.02 Mil. Its Operating Income was $-3.03 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Strasbaugh did not have earnings to cover the interest expense.

Strasbaugh's Interest Coverage for the quarter that ended in Jun. 2010 is calculated as

Here, for the three months ended in Jun. 2010, Strasbaugh's Interest Expense was $-0.01 Mil. Its Operating Income was $0.43 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2010 )/Interest Expense (Q: Jun. 2010 )
=-1*0.432/-0.005
=86.40

* 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.


Strasbaugh  (OTCPK:STRB) 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 .


Strasbaugh Interest Coverage Related Terms

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


Strasbaugh (Strasbaugh) Business Description

Traded in Other Exchanges
N/A
Address
825 Buckley Road, San Luis Obispo, CA, USA, 93401
Strasbaugh makes equipment that is used to make microelectronics. The company manufactures and sells CMP and grinding equipment for use in the production of semiconductor devices. Its CMP and wafer grinding systems are used to manufacture a range of mobile devices, including MEMS, LEDs, RF/power devices, thin film heads, and ICs.
Executives
Bryant R Riley director C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
Miller Lloyd I Iii 10 percent owner
Richard H Nance officer: Executive VP and CFO 825 BUCKLEY ROAD, SAN LUIS OBISPO CA 93401
Wes Cummins director 4505 LORRAINE AVE, DALLAS TX 75205
Danilo Cacciamatta director
Michael B Targoff director 40 WEST 57TH ST., NEW YORK NY 10019

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