Switch to:
Apple Inc  (NAS:AAPL) Interest Coverage: 18.57 (As of Sep. 2018)

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. Apple Inc's Operating Income for the three months ended in Sep. 2018 was $16,118 Mil. Apple Inc's Interest Expense for the three months ended in Sep. 2018 was $-868 Mil. Apple Inc's interest coverage for the quarter that ended in Sep. 2018 was 18.57. The higher the ratio, the stronger the company's financial strength is.

NAS:AAPL' s Interest Coverage Range Over the Past 10 Years
Min: 21.88   Max: No Debt
Current: 21.88

21.88
No Debt

NAS:AAPL's Interest Coverage is ranked lower than
61% of the 1785 Companies
in the Global industry.

( Industry Median: 51.60 vs. NAS:AAPL: 21.88 )

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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Apple Inc Annual Data

Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 136.73 97.18 41.23 26.41 21.88

Apple Inc Quarterly Data

Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 19.70 35.80 20.07 14.91 18.57

Competitive Comparison
* 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.


Apple Inc Distribution

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



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.


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

Apple Inc's Interest Coverage for the fiscal year that ended in Sep. 2018 is calculated as

Here, for the fiscal year that ended in Sep. 2018, Apple Inc's Interest Expense was $-3,240 Mil. Its Operating Income was $70,898 Mil. And its Long-Term Debt & Capital Lease Obligation was $93,735 Mil.

Interest Coverage=-1*Operating Income (A: Sep. 2018 )/Interest Expense (A: Sep. 2018 )
=-1*70898/-3240
=21.88

Apple Inc's Interest Coverage for the quarter that ended in Sep. 2018 is calculated as

Here, for the three months ended in Sep. 2018, Apple Inc's Interest Expense was $-868 Mil. Its Operating Income was $16,118 Mil. And its Long-Term Debt & Capital Lease Obligation was $93,735 Mil.

Interest Coverage=-1*Operating Income (Q: Sep. 2018 )/Interest Expense (Q: Sep. 2018 )
=-1*16118/-868
=18.57

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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


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 .


Related Terms


Headlines

From the Internet

$AAPL #APPLE Bought Apple Stock Wednesday

- Seekingalpha 2018-11-15 17:33:14

$ATVI $AAPL Apples 180 Billion Ipad Gamble

- Seekingalpha 2018-11-15 14:00:59

$AAPL #APPLE Apple Investors Touch Reality

- Seekingalpha 2018-11-15 13:44:46

Jim Cramer Says There's A 'Two-Prong' Market

- theStreet 2018-11-15 12:32:00

$AAPL #APPLE Apple Falls World Trembles

- Seekingalpha 2018-11-15 11:59:22

Stock Market News For Nov 15, 2018

- Zacks 2018-11-15 08:40:00

$AAPL #APPLE Costly Craving Reasons

- Seekingalpha 2018-11-15 07:20:37

Why is the Stock Market Sliding Today?

- Zacks 2018-11-14 16:49:00

Wednesday Wrap-Up: The Bear Bites Into Apple

- theStreet 2018-11-14 15:59:00

Apple Shares Tumble Into Bear Market Territory

- theStreet 2018-11-14 12:28:00

Stock Market News For Nov 14, 2018

- Zacks 2018-11-14 08:30:00

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK