KMG Chemicals (KMG Chemicals) Interest Coverage : 5.33 (As of Jul. 2018)

KMG Chemicals Interest Coverage Chart

KMG Chemicals Annual Data
	Trend	Jul09	Jul10	Jul11	Jul12	Jul13	Jul14	Jul15	Jul16	Jul17	Jul18
Interest Coverage		Get a 7-Day Free Trial					5.20	16.70	36.71	7.75	4.10

KMG Chemicals Quarterly Data
	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18
Interest Coverage	Get a 7-Day Free Trial															2.45	2.49	4.26	5.77	5.33

Competitive Comparison of KMG Chemicals's Interest Coverage

For the Specialty Chemicals subindustry, KMG Chemicals'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.

KMG Chemicals's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, KMG Chemicals's Interest Coverage distribution charts can be found below:

* The bar in red indicates where KMG Chemicals's Interest Coverage falls into.

KMG Chemicals 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.

KMG Chemicals's Interest Coverage for the fiscal year that ended in Jul. 2018 is calculated as

Here, for the fiscal year that ended in Jul. 2018, KMG Chemicals's Interest Expense was $-21.5 Mil. Its Operating Income was $88.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $306.1 Mil.

KMG Chemicals's Interest Coverage for the quarter that ended in Jul. 2018 is calculated as

Here, for the three months ended in Jul. 2018, KMG Chemicals's Interest Expense was $-4.2 Mil. Its Operating Income was $22.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $306.1 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.

KMG Chemicals  (NYSE:KMG) 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 .

KMG Chemicals Interest Coverage Related Terms

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KMG Chemicals (KMG Chemicals) Business Description