Lafarge (XPAR:LGNV) Interest Coverage : 0 (At Loss) (As of Jun. 2015)

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What is Lafarge 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. Lafarge's Operating Income for the three months ended in Jun. 2015 was €-48 Mil. Lafarge's Interest Expense for the three months ended in Jun. 2015 was €-248 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

XPAR:LGNV' s Interest Coverage Range Over the Past 10 Years
Min: 0.91 Med: 2 Max: 5.31
Current: 0.91

XPAR:LGNV's Interest Coverage is not ranked
in the Building Materials industry.
Industry Median: 6.56 vs XPAR:LGNV: 0.91

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

Lafarge Interest Coverage Historical Data

The historical data trend for Lafarge'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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Lafarge Interest Coverage Chart

Lafarge Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Interest Coverage

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2.02

1.47

1.75

1.96

1.68

Lafarge Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Interest Coverage	Get a 7-Day Free Trial															2.07	2.56	1.10	0.38	-

Competitive Comparison of Lafarge's Interest Coverage

For the Building Materials subindustry, Lafarge'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.

Lafarge's Interest Coverage Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Lafarge's Interest Coverage distribution charts can be found below:

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

Lafarge 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.

Lafarge'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, Lafarge's Interest Expense was €-870 Mil. Its Operating Income was €1,460 Mil. And its Long-Term Debt & Capital Lease Obligation was €9,365 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2014 )	/	Interest Expense (A: Dec. 2014 )
	=	-1	*	1460	/	-870
	=	1.68

Lafarge's Interest Coverage for the quarter that ended in Jun. 2015 is calculated as

Here, for the three months ended in Jun. 2015, Lafarge's Interest Expense was €-248 Mil. Its Operating Income was €-48 Mil. And its Long-Term Debt & Capital Lease Obligation was €10,254 Mil.

Lafarge did not have earnings to cover the interest expense.

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

Lafarge (XPAR:LGNV) 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 .

Lafarge Interest Coverage Related Terms

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

Lafarge (XPAR:LGNV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Lafarge SA (XPAR:LGNV) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.lafarge.com

Lafarge SA is a French limited liability company governed by French law and was founded in France in 1833 and was incorporated in 1884 under the name "J. et A. Pavin de Lafarge". The Company provides building materials. It is engaged in producing & selling cement, aggregates and ready-mix concrete, mostly under the "Lafarge" brand name. Its building products and solutions are used to construct and renovate homes, buildings and infrastructures. At year-end 2013, Company cement production operated, in 56 countries, 113 cement plants and 42 grinding plants, with an annual production capacity of 221 million tons. It also manages cement trading activities. The Company aggregates and concrete are used as raw materials for concrete, masonry, asphalt, and other industrial processes, and as base materials for roads, landï¬lls, and building. As of December 31, 2013, Company had approximately 437 production facilities for aggregates in 23 countries. The Company's Ready-mix concrete had 1,026 concrete plants in 33 countries as of December 31, 2014. The Company also produces asphalt in North America and the United Kingdom, and sells either as a stand-alone product, or in conjunction with contracted paving. The Company operates in Western Europe, North America, Central & Eastern Europe, Middle East & Africa, and Asia.

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