IMS Health Holdings (IMS Health Holdings) Interest Coverage : 1.68 (As of Jun. 2016)

IMS Health Holdings Interest Coverage Chart

IMS Health Holdings Quarterly Data
	Dec10	Dec11	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
Interest Coverage	Get a 7-Day Free Trial												2.23	2.02	1.96	2.46	1.68

Competitive Comparison of IMS Health Holdings's Interest Coverage

For the Health Information Services subindustry, IMS Health Holdings'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.

IMS Health Holdings's Interest Coverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, IMS Health Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where IMS Health Holdings's Interest Coverage falls into.

IMS Health Holdings 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

IMS Health Holdings'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, IMS Health Holdings's Interest Expense was $-169 Mil. Its Operating Income was $364 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,136 Mil.

IMS Health Holdings's Interest Coverage for the quarter that ended in Jun. 2016 is calculated as

Here, for the three months ended in Jun. 2016, IMS Health Holdings's Interest Expense was $-47 Mil. Its Operating Income was $79 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,417 Mil.

* 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.

IMS Health Holdings  (NYSE:IMS) 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 .

IMS Health Holdings Interest Coverage Related Terms

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IMS Health Holdings (IMS Health Holdings) Business Description