VCTY (Videolocity International) Interest Coverage: N/A (As of Apr. 2007)

Videolocity International  (OTCPK:VCTY) 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 .

Videolocity International Interest Coverage Related Terms

The historical data trend for Videolocity International'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.

Videolocity International Interest Coverage Chart

Videolocity International Quarterly Data
	Jul02	Oct02	Jan03	Apr03	Jul03	Oct03	Jan04	Apr04	Jul04	Oct04	Jan05	Apr05	Jul05	Oct05	Jan06	Apr06	Jul06	Oct06	Jan07	Apr07
Interest Coverage	Get a 7-Day Free Trial															N/A	N/A	N/A	N/A	N/A

VCTY vs ATSKF, PFGB, VTIFF: Interest Coverage Comparison

For the Communication Equipment subindustry, Videolocity International'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.

Videolocity International Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Videolocity International's Interest Coverage distribution charts can be found below:

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

Videolocity International 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Videolocity International's Interest Coverage for the fiscal year that ended in Oct. 2006 is calculated as

Here, for the fiscal year that ended in Oct. 2006, Videolocity International's Interest Expense was $0.00 Mil. Its Operating Income was $-0.73 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.61 Mil.

Videolocity International's Interest Coverage for the quarter that ended in Apr. 2007 is calculated as

Here, for the three months ended in Apr. 2007, Videolocity International's Interest Expense was $0.00 Mil. Its Operating Income was $-0.38 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.40 Mil.

* 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.

Videolocity International Business Description