TOYRF (Toys R Us ANZ) Interest Coverage: 1.23 (As of Jan. 2018)


What is Toys R Us ANZ Interest Coverage?

Toys R Us ANZ TOYRF +400.00% Interest Coverage is 1.23 as of Jan. 2018.

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. Toys R Us ANZ's Operating Income for the six months ended in Jan. 2018 was $1.16 Mil. Toys R Us ANZ's Interest Expense for the six months ended in Jan. 2018 was $-0.95 Mil. Toys R Us ANZ's interest coverage for the quarter that ended in Jan. 2018 was 1.23. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Toys R Us ANZ's Interest Coverage or its related term are showing as below:


TOYRF's Interest Coverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 7.91
* 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.

Toys R Us ANZ  (OTCPK:TOYRF) 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 .

Toys R Us ANZ Interest Coverage Related Terms

Toys R Us ANZ Interest Coverage Historical Data

* Premium members only.

The historical data trend for Toys R Us ANZ'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.

Toys R Us ANZ Interest Coverage Chart

Toys R Us ANZ Annual Data
Trend Dec07 Dec08 Dec09 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.29 0.00 0.00 0.00 0.00

Toys R Us ANZ Semi-Annual Data
Dec07 Jun08 Dec08 Jun09 Dec09 Jan11 Jul11 Jan12 Jul12 Jan13 Jul13 Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18
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 1.23

TOYRF vs BWMG, AS, HAS: Interest Coverage Comparison

For the Specialty Retail subindustry, Toys R Us ANZ'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.

Toys R Us ANZ Interest Coverage vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Toys R Us ANZ's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Toys R Us ANZ's Interest Coverage falls into.


Toys R Us ANZ 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.

Toys R Us ANZ's Interest Coverage for the fiscal year that ended in Jul. 2017 is calculated as

Here, for the fiscal year that ended in Jul. 2017, Toys R Us ANZ's Interest Expense was $-2.78 Mil. Its Operating Income was $-6.40 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.08 Mil.

Toys R Us ANZ did not have earnings to cover the interest expense.

Toys R Us ANZ's Interest Coverage for the quarter that ended in Jan. 2018 is calculated as

Here, for the six months ended in Jan. 2018, Toys R Us ANZ's Interest Expense was $-0.95 Mil. Its Operating Income was $1.16 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.59 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2018 )/Interest Expense (Q: Jan. 2018 )
=-1*1.163/-0.947
=1.23

* 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 1.23 mean?
Toys R Us ANZ (TOYRF) has a Interest Coverage of 1.23 as of Jan. 2018. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Toys R Us ANZ and its competitors.
Is Toys R Us ANZ's Interest Coverage too high?
Toys R Us ANZ's current Interest Coverage is 1.23. The Retail - Cyclical industry median Interest Coverage is 7.91. Toys R Us ANZ's value of 1.23 is 84.5% below this industry median.
How does Toys R Us ANZ's Interest Coverage compare to BWMG and AS?
Toys R Us ANZ's Interest Coverage of 1.23 can be compared against companies in the Retail - Cyclical industry. The industry median Interest Coverage is 7.91. Toys R Us ANZ's value of 1.23 is 84.5% 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.91, based on 827 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. Toys R Us ANZ's current Interest Coverage of 1.23 is 84.5% 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 Toys R Us ANZ and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toys R Us ANZ's current Interest Coverage is 1.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toys R Us ANZ stock overvalued right now?
Toys R Us ANZ (TOYRF) has a current Interest Coverage of 1.23. The current Interest Coverage is 1.23 and 84.5% below the Retail - Cyclical industry median of 7.91. 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 Toys R Us ANZ (TOYRF), the current Interest Coverage is 1.23 as of Jan. 2018. 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.

Toys R Us ANZ Business Description

Address 45-49 McNaughton Road, Unit 3, Clayton, VIC, AUS, 3168
Toys R Us ANZ Ltd is a brand builder and distributor of toys, sporting, and lifestyle products. The company is organised into two operating segments based on differences in products sold: Business to Consumer (B2C) and Corporate. The Business to Consumer segment is involved in sale of consumer products (toys, hobby and baby goods) to the consumers and Corporate relates to the corporate running costs of the Group. The company generates majority of its revenue from its B2C segment. Geographically the company operates in Australia.