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GuruFocus has detected 3 Warning Signs with Cardiovascular Systems Inc $CSII.
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Cardiovascular Systems Inc (NAS:CSII)
Interest Coverage
N/A (As of Mar. 2017)

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. Cardiovascular Systems Inc's Operating Income for the three months ended in Mar. 2017 was $-1.8 Mil. Cardiovascular Systems Inc's Interest Expense for the three months ended in Mar. 2017 was $0.0 Mil. GuruFocus does not calculate Cardiovascular Systems Inc's interest coverage with the available data. The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

Ben Graham prefers companies interest coverage is at least 5. Cardiovascular Systems Inc has enough cash to cover all of its debt. Its financial situation is stable.

CSII' s Interest Coverage Range Over the Past 10 Years
Min: N/A   Max: No Debt
Current: N/A

N/A
No Debt
CSII's Interest Coverage is ranked higher than
94% of the 222 Companies
in the Global Medical Devices industry.

( Industry Median: 86.37 vs. CSII: N/A )

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


Definition

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 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.

Cardiovascular Systems Inc's Interest Coverage for the fiscal year that ended in Jun. 2016 is calculated as

Here, for the fiscal year that ended in Jun. 2016, Cardiovascular Systems Inc's Interest Expense was $0.0 Mil. Its Operating Income was $-56.1 Mil. And its Long-Term Debt was $0.0 Mil.

Cardiovascular Systems Inc had no debt.

Cardiovascular Systems Inc's Interest Coverage for the quarter that ended in Mar. 2017 is calculated as

Here, for the three months ended in Mar. 2017, Cardiovascular Systems Inc's Interest Expense was $0.0 Mil. Its Operating Income was $-1.8 Mil. And its Long-Term Debt was $21.0 Mil.

GuruFocus does not calculate Cardiovascular Systems Inc's interest coverage with the available data.

* 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

Operating Income, Interest Expense, Financial Strength


Historical Data

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

Cardiovascular Systems Inc Annual Data

Dec07Dec08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
interest_coverage No DebtNo DebtAt LossAt LossAt LossAt LossAt LossAt LossAt LossNo Debt

Cardiovascular Systems Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
interest_coverage At LossAt LossNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtN/A
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