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. Zoro Mining's
Operating Income
for the
six
months ended in Apr. 2012 was $-4.11 Mil. Zoro Mining's Interest Expense for the
six
months ended in Apr. 2012 was $-0.07 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 Zoro Mining's Interest Coverage or its related term are showing as below:
ZORM's Interest Coverage is not ranked *
in the Metals & Mining industry.
Industry Median: No Debt * Ranked among companies with meaningful Interest Coverage only.
The historical data trend for Zoro Mining'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.
Competitive Comparison of Zoro Mining's Interest Coverage
For the Other Industrial Metals & Mining subindustry, Zoro Mining'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.
Zoro Mining's Interest Coverage Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Zoro Mining's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Zoro Mining's Interest Coverage falls into.
Zoro Mining 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:
Zoro Mining did not have earnings to cover the interest expense.
* 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.
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 .
Zoro Mining Interest Coverage Related Terms
Thank you for viewing the detailed overview of Zoro Mining's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Zoro Mining Corp was incorporated under the laws of the State of Nevada on April 20, 2004 under the name 'Rockdale Mining Corp'. Effective March 19, 2007, it merged with a wholly-owned subsidiary, Zoro Mining Corp., pursuant to Articles of merger filed with the Nevada Secretary of State. The merger was in the form of a parent/subsidiary merger with Rochdale Mining Corp. as the surviving corporation. Upon completion of the merger, its corporate name was changed to 'Zoro Mining Corp.' and its Articles of Incorporation were amended to reflect this name change. It is a natural resource exploration company currently engaged in the exploration, acquisition and development of property located in South America and Mexico. It plans to conduct exploration programs on its properties with the objective of ascertaining whether any of its properties contain economic concentrations of minerals that are prospective for mining. The Company currently has interests in an aggregate of approximately 27,294 net acres located in Chile, approximately 4,940 net acres in Peru, and a further 6,822 gross acres located in Mexico, targeting gold, copper and platinum. It operates in a highly competitive industry, competing with other mining and exploration mineral companies, and institutional and individual investors, which are actively seeking metal and mineral based exploration properties throughout the world together with the equipment, labor and materials required to exploit such properties. The Company's mineral exploration activities are, or would be, subject to extensive foreign laws and regulations governing prospecting, development, production, exports, taxes, labor standards, occupational health, waste disposal, protection and remediation of the environment, protection of endangered and protected species, mine safety, toxic substances and other matters.
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