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Diamond S Shipping Group (Diamond S Shipping Group) Interest Coverage

: 1.33 (As of Mar. 2013)
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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 by its Interest Expense. Diamond S Shipping Group's Operating Income for the six months ended in Mar. 2013 was $44.38 Mil. Diamond S Shipping Group's Interest Expense for the six months ended in Mar. 2013 was $-33.40 Mil. Diamond S Shipping Group's interest coverage for the quarter that ended in Mar. 2013 was 1.33. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Diamond S Shipping Group Inc interest coverage is 1.33, which is low.

The historical rank and industry rank for Diamond S Shipping Group's Interest Coverage or its related term are showing as below:

DSG' s Interest Coverage Range Over the Past 10 Years
Min: 0.43   Med: 0.88   Max: 1.33
Current: 1.33

DSG's Interest Coverage is not ranked
in the Transportation industry.
Industry Median: 5.605 vs DSG: 1.33

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

Diamond S Shipping Group Interest Coverage Historical Data

The historical data trend for Diamond S Shipping Group's Interest Coverage can be seen below:

* 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Diamond S Shipping Group Annual Data
Trend Mar12 Mar13
Interest Coverage
0.43 1.33

Diamond S Shipping Group Semi-Annual Data
Mar12 Mar13
Interest Coverage 0.43 1.33
Competitive Comparison

For the Marine Shipping subindustry, Diamond S Shipping Group'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.

Diamond S Shipping Group Interest Coverage Distribution

For the Transportation industry and Industrials sector, Diamond S Shipping Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Diamond S Shipping Group's Interest Coverage falls into.


Diamond S Shipping Group 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

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 (1).


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

Diamond S Shipping Group's Interest Coverage for the fiscal year that ended in Mar. 2013 is calculated as

Here, for the fiscal year that ended in Mar. 2013, Diamond S Shipping Group's Interest Expense was $-33.40 Mil. Its Operating Income was $44.38 Mil. And its Long-Term Debt & Capital Lease Obligation was $582.17 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2013 )/Interest Expense (A: Mar. 2013 )
=-1*44.381/-33.403
=1.33

Diamond S Shipping Group's Interest Coverage for the quarter that ended in Mar. 2013 is calculated as

Here, for the six months ended in Mar. 2013, Diamond S Shipping Group's Interest Expense was $-33.40 Mil. Its Operating Income was $44.38 Mil. And its Long-Term Debt & Capital Lease Obligation was $582.17 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2013 )/Interest Expense (Q: Mar. 2013 )
=-1*44.381/-33.403
=1.33

* 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.

Diamond S Shipping Group  (NYSE:DSG) 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 .

Diamond S Shipping Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of Diamond S Shipping Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Diamond S Shipping Group (Diamond S Shipping Group) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Diamond S Shipping Group Inc (NYSE:DSG) » Definitions » Interest Coverage
Comparable Companies
PRGNF TEUFF BSTN TOPS RLOG DRYS ESEA GTMAY PXS GLBS SHIP GNKOQ GSL NAO PANL NAP GASS NM DAC OSG
Traded in Other Exchanges
N/A
Address
Website
http://www.diamondsshipping.com
Diamond S Shipping Group Inc, is incorporated in Marshall Islands on July 31, 2013. The Company provides seaborne transportation of refined petroleum and other products in the international shipping markets. The Company is the owners and operators of medium range, or MR, product tankers. The Company's fleet currently consists of 33 MR product tankers built at Korean and Japanese shipyards. The Company competes on basis of price, vessel location, size, age and condition of the vessel. The Company is subject to various international conventions, national, state and local laws and regulations in the countries in which its vessels may operate or are registered.

Diamond S Shipping Group (Diamond S Shipping Group) Headlines