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Navient Corporation  (NYSE:ISM) Interest Coverage: At Loss (As of . 20)

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. Navient Corporation's Operating Income for the six months ended in . 20 was \$0.00 Mil. Navient Corporation's Interest Expense for the six months ended in . 20 was \$0.00 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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.

Navient Corporation Annual Data

 Interest Coverage

Navient Corporation Semi-Annual Data

 Interest Coverage

Competitive Comparison
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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

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

Navient Corporation's Interest Coverage for the fiscal year that ended in . 20 is calculated as

Here, for the fiscal year that ended in . 20, Navient Corporation's Interest Expense was \$0.00 Mil. Its Operating Income was \$0.00 Mil. And its Long-Term Debt & Capital Lease Obligation was \$0.00 Mil.

Navient Corporation's Interest Coverage for the quarter that ended in . 20 is calculated as

Here, for the six months ended in . 20, Navient Corporation's Interest Expense was \$0.00 Mil. Its Operating Income was \$0.00 Mil. And its Long-Term Debt & Capital Lease Obligation was \$0.00 Mil.

* 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