Club Méditerranée (XPAR:CU) Interest Coverage : 1.63 (As of Oct. 2014)

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What is Club Méditerranée 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. Club Méditerranée's Operating Income for the six months ended in Oct. 2014 was €13 Mil. Club Méditerranée's Interest Expense for the six months ended in Oct. 2014 was €-8 Mil. Club Méditerranée's interest coverage for the quarter that ended in Oct. 2014 was 1.63. The higher the ratio, the stronger the company's financial strength is.

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

XPAR:CU' s Interest Coverage Range Over the Past 10 Years
Min: 0.41 Med: 1.52 Max: N/A
Current: 1.63

XPAR:CU's Interest Coverage is not ranked
in the Travel & Leisure industry.
Industry Median: 5.23 vs XPAR:CU: 1.63

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

Club Méditerranée Interest Coverage Historical Data

The historical data trend for Club Méditerranée'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.

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Club Méditerranée Interest Coverage Chart

Club Méditerranée Annual Data

Trend

Oct06

Oct07

Oct08

Oct09

Oct10

Oct11

Oct12

Oct13

Oct14

Interest Coverage

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0.68

1.73

2.75

1.40

1.63

Club Méditerranée Semi-Annual Data
	Oct06	Oct07	Oct08	Oct09	Oct10	Oct11	Oct12	Oct13	Oct14
Interest Coverage	Get a 7-Day Free Trial				0.68	1.73	2.75	1.40	1.63

Competitive Comparison of Club Méditerranée's Interest Coverage

For the Lodging subindustry, Club Méditerranée'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.

Club Méditerranée's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Club Méditerranée's Interest Coverage distribution charts can be found below:

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

Club Méditerranée 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.

Club Méditerranée's Interest Coverage for the fiscal year that ended in Oct. 2014 is calculated as

Here, for the fiscal year that ended in Oct. 2014, Club Méditerranée's Interest Expense was €-8 Mil. Its Operating Income was €13 Mil. And its Long-Term Debt & Capital Lease Obligation was €84 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Oct. 2014 )	/	Interest Expense (A: Oct. 2014 )
	=	-1	*	13	/	-8
	=	1.63

Club Méditerranée's Interest Coverage for the quarter that ended in Oct. 2014 is calculated as

Here, for the six months ended in Oct. 2014, Club Méditerranée's Interest Expense was €-8 Mil. Its Operating Income was €13 Mil. And its Long-Term Debt & Capital Lease Obligation was €84 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Oct. 2014 )	/	Interest Expense (Q: Oct. 2014 )
	=	-1	*	13	/	-8
	=	1.63

The higher the ratio, the stronger the company's Financial Strength is.

Club Méditerranée (XPAR:CU) 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 .

Club Méditerranée Interest Coverage Related Terms

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

Club Méditerranée (XPAR:CU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Club Méditerranée (XPAR:CU) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.clubmed.com

Club MÃ©diterranÃ©e, established on November 12, 1957, operates in the tourism market. The Group is organized into three geographical regions: The Europe-Africa region (EAF), comprising the countries of Europe, the Middle East and Africa; the Americas region, aggregating the North America (including the West Indies) and South America operating segments; the Asia region, comprising the countries of Eastern and Southern Asia and the Pacific (ESAP) and Greater China (China, Taiwan, Hong Kong). The Group also has a real estate development business which builds and sells villas and luxury chalet-apartments.