Air Methods (Air Methods) Interest Coverage : 5.04 (As of Dec. 2016)

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What is Air Methods 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. Air Methods's Operating Income for the three months ended in Dec. 2016 was $41 Mil. Air Methods's Interest Expense for the three months ended in Dec. 2016 was $-8 Mil. Air Methods's interest coverage for the quarter that ended in Dec. 2016 was 5.04. The higher the ratio, the stronger the company's financial strength is.

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

AIRM's Interest Coverage is not ranked ^*
in the Transportation industry.
Industry Median: 5.43
* 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.

Air Methods Interest Coverage Historical Data

The historical data trend for Air Methods'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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Air Methods Interest Coverage Chart

Air Methods Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Interest Coverage

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8.25

5.94

8.44

9.09

5.97

Air Methods Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
Interest Coverage	Get a 7-Day Free Trial															6.19	5.26	6.54	7.03	5.04

Competitive Comparison of Air Methods's Interest Coverage

For the Airports & Air Services subindustry, Air Methods'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.

Air Methods's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Air Methods's Interest Coverage distribution charts can be found below:

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

Air Methods 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.

Air Methods's Interest Coverage for the fiscal year that ended in Dec. 2016 is calculated as

Here, for the fiscal year that ended in Dec. 2016, Air Methods's Interest Expense was $-32 Mil. Its Operating Income was $191 Mil. And its Long-Term Debt & Capital Lease Obligation was $811 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2016 )	/	Interest Expense (A: Dec. 2016 )
	=	-1	*	190.977	/	-31.99
	=	5.97

Air Methods's Interest Coverage for the quarter that ended in Dec. 2016 is calculated as

Here, for the three months ended in Dec. 2016, Air Methods's Interest Expense was $-8 Mil. Its Operating Income was $41 Mil. And its Long-Term Debt & Capital Lease Obligation was $811 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2016 )	/	Interest Expense (Q: Dec. 2016 )
	=	-1	*	40.969	/	-8.136
	=	5.04

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

Air Methods (NAS:AIRM) 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 .

Air Methods Interest Coverage Related Terms

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

Air Methods (Air Methods) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Air Methods Corp (NAS:AIRM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.airmethods.com

Air Methods Corp is a Delaware corporation, was established in Colorado in 1982. The Company provides air medical emergency transport services and systems throughout the United States of America. It designs, manufactures, and installs medical aircraft interiors and other aerospace and medical transport products. The Company also provides tourism operations in and around the Grand Canyon and Hawaiian Islands. The Company's operating segments include Air Medical Services, Tourism Division and United Rotorcraft. Air Medical Services provides air medical transportation services to the general population as an independent service and to hospitals or other institutions under exclusive operating agreements. The division operates 380 helicopters and 26 fixed wing aircraft under both Instrument Flight Rules and Visual Flight Rules. Tourism Division provides helicopter tours and charter flights, mainly focusing on Grand Canyon and Hawaiian Island tours. The division operates 48 helicopters under two Part 135 Air Carrier Certificates. United Rotorcraft Division designs, manufactures, and installs aircraft medical interiors and other aerospace and medical transport products for domestic and international customers. The Company maintains patents covering several products, including the Litter Lift System used in the U.S. Army's HH-60M helicopter and Medical Evacuation Vehicle, and the Articulating Patient Loading System and Modular Equipment Frame developed as part of the modular interior concept. The Company competes with several national and regional air medical transportation providers for contracts with hospitals and other healthcare institutions. It also competes with larger aerial tourism operators in the Grand Canyon market and a number of smaller operators in both the Grand Canyon and Hawaiian Island markets. The Company is subject to the Federal Aviation Act of 1958. All of its flight and maintenance operations-including equipment, ground facilities, dispatch, communications, flight training personnel and other matters affecting air safety are regulated and actively supervised by the U.S. Department of Transportation through the FAA. It is also subject to laws, regulations, and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002, Dodd-Frank Wall Street Reform and Consumer Protection Act, Securities and Exchange Commission (SEC) regulations, NASDAQ Stock Market rules, and other federal and state securities laws.

Executives

Mark D Carleton	director	12300 LIBERTY BLVD., ENGLEWOOD CO 80112
Joseph E Whitters	director
Claire M Gulmi	director
Peter P. Csapo	officer: Chief Financial Officer	ACCRETIVE HEALTH, INC. 401 NORTH MICHIGAN AVENUE, SUITE 2700 CHICAGO IL 60611
Crystal L Gordon	officer: General Counsel and Secretary	945 BUNKER HILL, SUITE 650, HOUSTON TX 77024
David Roehr	director	ONE CABELA DRIVE, SIDNEY NE 69160