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D.R. Horton Inc  (NYSE:DHI) Interest Coverage: N/A (As of Sep. 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. D.R. Horton Inc's Operating Income for the three months ended in Sep. 2017 was $479 Mil. D.R. Horton Inc's Interest Expense for the three months ended in Sep. 2017 was $0 Mil. GuruFocus does not calculate '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. D.R. Horton Inc has enough cash to cover all of its debt. Its financial situation is stable.

NYSE:DHI' s Interest Coverage Range Over the Past 10 Years
Min: 1.08   Max: 124.39
Current: N/A

1.08
124.39

NYSE:DHI's Interest Coverage is ranked higher than
83% of the 602 Companies
in the Global industry.

( Industry Median: 17.32 vs. NYSE:DHI: 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.


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.

D.R. Horton Inc Annual Data

Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 124.39 N/A N/A N/A N/A

D.R. Horton Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 N/A N/A N/A N/A N/A

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.


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.

D.R. Horton Inc's Interest Coverage for the fiscal year that ended in Sep. 2017 is calculated as

Here, for the fiscal year that ended in Sep. 2017, D.R. Horton Inc's Interest Expense was $0 Mil. Its Operating Income was $1,577 Mil. And its Long-Term Debt & Capital Lease Obligation was $420 Mil.

GuruFocus does not calculate D.R. Horton Inc's interest coverage with the available data.

D.R. Horton Inc's Interest Coverage for the quarter that ended in Sep. 2017 is calculated as

Here, for the three months ended in Sep. 2017, D.R. Horton Inc's Interest Expense was $0 Mil. Its Operating Income was $479 Mil. And its Long-Term Debt & Capital Lease Obligation was $420 Mil.

GuruFocus does not calculate D.R. Horton 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


Headlines

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