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ARIAD Pharmaceuticals (ARIAD Pharmaceuticals) Interest Coverage : 0 (At Loss) (As of Sep. 2016)


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What is ARIAD Pharmaceuticals 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. ARIAD Pharmaceuticals's Operating Income for the three months ended in Sep. 2016 was $-25.0 Mil. ARIAD Pharmaceuticals's Interest Expense for the three months ended in Sep. 2016 was $-8.4 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 ARIAD Pharmaceuticals's Interest Coverage or its related term are showing as below:


ARIA's Interest Coverage is not ranked *
in the Biotechnology industry.
Industry Median: 138.73
* 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.


ARIAD Pharmaceuticals Interest Coverage Historical Data

The historical data trend for ARIAD Pharmaceuticals'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.

* Premium members only.

ARIAD Pharmaceuticals Interest Coverage Chart

ARIAD Pharmaceuticals Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Interest Coverage
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ARIAD Pharmaceuticals Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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Competitive Comparison of ARIAD Pharmaceuticals's Interest Coverage

For the Biotechnology subindustry, ARIAD Pharmaceuticals'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.


ARIAD Pharmaceuticals's Interest Coverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, ARIAD Pharmaceuticals's Interest Coverage distribution charts can be found below:

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



ARIAD Pharmaceuticals 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.

ARIAD Pharmaceuticals's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, ARIAD Pharmaceuticals's Interest Expense was $-18.1 Mil. Its Operating Income was $-217.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $429.2 Mil.

ARIAD Pharmaceuticals did not have earnings to cover the interest expense.

ARIAD Pharmaceuticals's Interest Coverage for the quarter that ended in Sep. 2016 is calculated as

Here, for the three months ended in Sep. 2016, ARIAD Pharmaceuticals's Interest Expense was $-8.4 Mil. Its Operating Income was $-25.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $522.9 Mil.

ARIAD Pharmaceuticals 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.

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


ARIAD Pharmaceuticals  (NAS:ARIA) 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 .


ARIAD Pharmaceuticals Interest Coverage Related Terms

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


ARIAD Pharmaceuticals (ARIAD Pharmaceuticals) Business Description

Traded in Other Exchanges
N/A
Address
ARIAD Pharmaceuticals Inc was organized as a Delaware corporation in April 1991. It is an oncology company. The Company is focused on discovery and development of breakthrough medicines to treat cancers by regulating cell signaling with small molecules. The Company's first approved cancer medicine, Iclusig (ponatinib), and its product candidates, AP26113 and ridaforolimus, were discovered internally by its scientists based on the expertise in computational and structure-based drug design. AP26113 is an investigational inhibitor of anaplastic lymphoma kinase, or ALK. In non-clinical studies, AP26113 also demonstrated that it can inhibit epidermal growth factor receptor, or EGFR, and c-ros oncogene-1, or ROS1. . Iclusig and its drug candidates and preclinical compounds are small molecules that can be readily synthesized by processes that it has developed. The Company do not own or operate manufacturing facilities for the production of clinical or commercial quantities of Iclusig or its product candidates. The company's competitors includes pharmaceutical and biotechnology companies such as Amgen Inc., AstraZeneca PLC, Bristol-Myers Squibb Company, Celgene Corporation, Eli Lilly and Company, the Roche Group, GlaxoSmithKline plc, Johnson & Johnson, Merck, Merck KGaA, Novartis AG, Pfizer, Inc., Sanofi-Aventis, Takeda Pharmaceutical Co., Ltd., and Teva Pharmaceutical Industries Ltd.Inc.
Executives
Alexander J Denner director C/O SARISSA CAPITAL MANAGEMENT LP, 660 STEAMBOAT ROAD, 3RD FLOOR, GREENWICH CT 06830
Norbert G Riedel director BAXTER INTERNATIONAL INC, ONE BAXTER PKWY DF2-1W, DEERFIELD IL 60015
Elona Esq. Kogan officer: Sr. V. P. - General Counsel C/O SEER, INC., 3800 BRIDGE PARKWAY, SUITE 102, REDWOOD CITY CA 94065
Manmeet Singh Soni officer: EVP, CFO & Treasurer C/O PHARMACYCLICS, INC., 995 EAST ARQUES AVE, SUNNYVALE CA 94085
Timothy P Clackson officer: President, R&D, CSO C/O ARIAD PHARMACEUTICALS INC, 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Jules Haimovitz director 601 108TH AVENUE NE, SUITE 1200, BELLEVUE WA 98004
Daniel M Bollag officer: Sr. VP, Reg. Affairs & Quality C/O ARIAD PHARMACEUTICALS, INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Hugh M Cole officer: SVP, Chief Business Officer C/O ARIAD PHARMACEUTICALS, INC, 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
George Bickerstaff director C/O VION PHARMACEUTICALS, INC., 4 SCIENCE PARK, NEW HAVEN CT 06511
Paris Panayiotopoulos director, officer: President and CEO ARIAD PHARMACEUTICALS, INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Anna Protopapas director MILLENNIUM PHARMACEUTICALS, INC., 40 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Sarah J. Schlesinger director C/O ARIAD PHARMACEUTICALS, 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Massimo Radaelli director C/O ARIAD PHARMACEUTICALS, INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Martin J Duvall officer: EVP, CCO MGI PHARMA, INC., 5775 WEST OLD SHAKOPEE ROAD, SUITE 100, BLOOMINGTON MN 55437
Frank Haluska officer: SVP, Clinical R&D, CMO C/O ARIAD PHARMACEUTICALS, INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139

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