SWYDF (Stornoway Diamond) Interest Coverage: 10.75 (As of Jun. 2019)


What is Stornoway Diamond Interest Coverage?

Stornoway Diamond SWYDF Interest Coverage is 10.75 as of Jun. 2019.

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. Stornoway Diamond's Operating Income for the three months ended in Jun. 2019 was $80.3 Mil. Stornoway Diamond's Interest Expense for the three months ended in Jun. 2019 was $-7.5 Mil. Stornoway Diamond's interest coverage for the quarter that ended in Jun. 2019 was 10.75. The higher the ratio, the stronger the company's financial strength is.

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


SWYDF's Interest Coverage is not ranked *
in the Metals & Mining industry.
Industry Median: No Debt
* 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.

Stornoway Diamond  (OTCPK:SWYDF) 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 .

Stornoway Diamond Interest Coverage Related Terms

Stornoway Diamond Interest Coverage Historical Data

* Premium members only.

The historical data trend for Stornoway Diamond'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.

Stornoway Diamond Interest Coverage Chart

Stornoway Diamond Annual Data
Trend Apr09 Apr10 Apr11 Apr12 Apr13 Apr14 Apr15 Dec16 Dec17 Dec18
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A 0.00 0.00 0.95 0.00

Stornoway Diamond Quarterly Data
Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 0.00 0.00 0.00 0.00 10.75

SWYDF vs DYNR, CTDT: Interest Coverage Comparison

For the Other Precious Metals & Mining subindustry, Stornoway Diamond'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.

Stornoway Diamond Interest Coverage vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Stornoway Diamond's Interest Coverage distribution charts can be found below:

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


Stornoway Diamond 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.

Stornoway Diamond's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, Stornoway Diamond's Interest Expense was $-27.2 Mil. Its Operating Income was $-62.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $234.5 Mil.

Stornoway Diamond did not have earnings to cover the interest expense.

Stornoway Diamond's Interest Coverage for the quarter that ended in Jun. 2019 is calculated as

Here, for the three months ended in Jun. 2019, Stornoway Diamond's Interest Expense was $-7.5 Mil. Its Operating Income was $80.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $218.2 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2019 )/Interest Expense (Q: Jun. 2019 )
=-1*80.31/-7.468
=10.75

* 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 10.75 mean?
Stornoway Diamond (SWYDF) has a Interest Coverage of 10.75 as of Jun. 2019. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Stornoway Diamond and its competitors.
Is Stornoway Diamond's Interest Coverage too high?
Stornoway Diamond's current Interest Coverage is 10.75. The Metals & Mining industry median Interest Coverage is 10,000.00. Stornoway Diamond's value of 10.75 is 99.9% below this industry median.
How does Stornoway Diamond's Interest Coverage compare to DYNR and CTDT?
Stornoway Diamond's Interest Coverage of 10.75 can be compared against companies in the Metals & Mining industry. The industry median Interest Coverage is 10,000.00. Stornoway Diamond's value of 10.75 is 99.9% below 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 Metals & Mining company?
The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,319 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. Stornoway Diamond's current Interest Coverage of 10.75 is 99.9% below 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 Stornoway Diamond and its competitors. For the Metals & Mining industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stornoway Diamond's current Interest Coverage is 10.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stornoway Diamond stock overvalued right now?
Stornoway Diamond (SWYDF) has a current Interest Coverage of 10.75. The current Interest Coverage is 10.75 and 99.9% below the Metals & Mining industry median of 10,000.00. 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 Stornoway Diamond (SWYDF), the current Interest Coverage is 10.75 as of Jun. 2019. 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.

Stornoway Diamond Business Description

Address 1111 St. Charles Street West, Tour Ouest, Suite 400, Longueuil, QC, CAN, J4K 5G4
Stornoway Diamond Corp is a leading Canadian diamond exploration and producing company. Its principal business is the development of its flagship asset, the fully-owned Renard Mine, located in Quebec, Canada. The company intends to grow its business through the exploration and development of its mines. Stornoway also holds interests in a portfolio of exploration assets across Canada through owned properties and joint ventures. These properties and joint ventures include projects such as Adamantin, Qilalugaq and Pikoo.