XBOR (Cross Border Resources) Interest Coverage: 0.77 (As of Mar. 2015)


What is Cross Border Resources Interest Coverage?

Cross Border Resources XBOR Interest Coverage is 0.77 as of Mar. 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. Cross Border Resources's Operating Income for the three months ended in Mar. 2015 was $0.08 Mil. Cross Border Resources's Interest Expense for the three months ended in Mar. 2015 was $-0.10 Mil. Cross Border Resources's interest coverage for the quarter that ended in Mar. 2015 was 0.77. The higher the ratio, the stronger the company's financial strength is.

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


XBOR's Interest Coverage is not ranked *
in the Oil & Gas industry.
Industry Median: 5.885
* 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.


Cross Border Resources  (OTCPK:XBOR) 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 .


Cross Border Resources Interest Coverage Related Terms


Cross Border Resources Interest Coverage Historical Data

* Premium members only.

The historical data trend for Cross Border Resources'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.

Cross Border Resources Interest Coverage Chart

Cross Border Resources Annual Data
Trend Jul06 Jul07 Jul08 Jul09 Jul10 Dec11 Dec12 Dec13 Dec14
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 0.00 0.00 0.86 5.32 0.00

Cross Border Resources Quarterly Data
Apr10 Jul10 Oct10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15
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 9.99 12.88 0.00 8.11 0.77

XBOR vs FPPP, UNGS, GBEYF: Interest Coverage Comparison

For the Oil & Gas E&P subindustry, Cross Border Resources'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.


Cross Border Resources Interest Coverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Cross Border Resources's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cross Border Resources's Interest Coverage falls into.



Cross Border Resources 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.

Cross Border Resources'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, Cross Border Resources's Interest Expense was $-0.49 Mil. Its Operating Income was $-1.07 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Cross Border Resources did not have earnings to cover the interest expense.

Cross Border Resources's Interest Coverage for the quarter that ended in Mar. 2015 is calculated as

Here, for the three months ended in Mar. 2015, Cross Border Resources's Interest Expense was $-0.10 Mil. Its Operating Income was $0.08 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2015 )/Interest Expense (Q: Mar. 2015 )
=-1*0.08/-0.104
=0.77

* 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 0.77 mean?
Cross Border Resources (XBOR) has a Interest Coverage of 0.77 as of Mar. 2015. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cross Border Resources and its competitors.
Is Cross Border Resources' Interest Coverage too high?
Cross Border Resources' current Interest Coverage is 0.77. The Oil & Gas industry median Interest Coverage is 5.89. Cross Border Resources' value of 0.77 is 86.9% below this industry median.
How does Cross Border Resources' Interest Coverage compare to FPPP and UNGS?
Cross Border Resources' Interest Coverage of 0.77 can be compared against companies in the Oil & Gas industry. The industry median Interest Coverage is 5.89. Cross Border Resources' value of 0.77 is 86.9% 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 an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 728 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. Cross Border Resources's current Interest Coverage of 0.77 is 86.9% 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 Cross Border Resources and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cross Border Resources's current Interest Coverage is 0.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cross Border Resources stock overvalued right now?
Cross Border Resources (XBOR) has a current Interest Coverage of 0.77. The current Interest Coverage is 0.77 and 86.9% below the Oil & Gas industry median of 5.89. 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 Cross Border Resources (XBOR), the current Interest Coverage is 0.77 as of Mar. 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.

Cross Border Resources Business Description

Industry EnergyOil & Gas
Address 2515 McKinney Avenue, Suite 900, Dallas, TX, USA, 75201
Cross Border Resources Inc is an oil and gas exploration company. The company is engaged in the acquisition, operation, exploration, and development of oil and gas properties and prospects.