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Novogen Ltd  (NAS:NVGN) Interest Coverage: No Debt (As of Dec. 2016)

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. Novogen Ltd's Operating Income for the six months ended in Dec. 2016 was $-6.40 Mil. Novogen Ltd's Interest Expense for the six months ended in Dec. 2016 was $0.00 Mil. Novogen Ltd has no debt. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Novogen Ltd has no debt.

NAS:NVGN' s Interest Coverage Range Over the Past 10 Years
Min: No Debt   Max: No Debt
Current: No Debt


NAS:NVGN's Interest Coverage is ranked higher than
98% of the 641 Companies
in the Global industry.

( Industry Median: 106.84 vs. NAS:NVGN: 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.


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.

Novogen Ltd Annual Data

Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10,000.00 0.00 0.00 0.00 10,000.00

Novogen Ltd Semi-Annual Data

Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16
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 0.00 0.00 10,000.00 10,000.00 10,000.00

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.

Novogen Ltd's Interest Coverage for the fiscal year that ended in Jun. 2016 is calculated as

Here, for the fiscal year that ended in Jun. 2016, Novogen Ltd's Interest Expense was $0.00 Mil. Its Operating Income was $-9.17 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Novogen Ltd had no debt.

Novogen Ltd's Interest Coverage for the quarter that ended in Dec. 2016 is calculated as

Here, for the six months ended in Dec. 2016, Novogen Ltd's Interest Expense was $0.00 Mil. Its Operating Income was $-6.40 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Novogen Ltd had no debt.

* 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 .


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