Eurasia Drilling Co (LSE:EDCL) Interest Coverage : 6.82 (As of Jun. 2015)

Eurasia Drilling Co Interest Coverage Chart

Eurasia Drilling Co Annual Data
	Trend	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14
Interest Coverage		Get a 7-Day Free Trial				19.44	7.27	10.15	10.72	16.67

Eurasia Drilling Co Semi-Annual Data
	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
Interest Coverage	Get a 7-Day Free Trial								9.69	11.90	9.92	50.31	6.82

Competitive Comparison of Eurasia Drilling Co's Interest Coverage

For the Oil & Gas Drilling subindustry, Eurasia Drilling Co'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.

Eurasia Drilling Co's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Eurasia Drilling Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Eurasia Drilling Co's Interest Coverage falls into.

Eurasia Drilling Co 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.

Eurasia Drilling Co's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, Eurasia Drilling Co's Interest Expense was $-33 Mil. Its Operating Income was $555 Mil. And its Long-Term Debt & Capital Lease Obligation was $993 Mil.

Eurasia Drilling Co's Interest Coverage for the quarter that ended in Jun. 2015 is calculated as

Here, for the six months ended in Jun. 2015, Eurasia Drilling Co's Interest Expense was $-19 Mil. Its Operating Income was $128 Mil. And its Long-Term Debt & Capital Lease Obligation was $803 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.

Eurasia Drilling Co  (LSE:EDCL) 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 .

Eurasia Drilling Co Interest Coverage Related Terms

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Eurasia Drilling Co (LSE:EDCL) Business Description