Global Lockfety (International) Group Co (LSE:GLOK) Interest Coverage : 3.72 (As of Jun. 2014)

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What is Global Lockfety (International) Group Co Interest Coverage?

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. Global Lockfety (International) Group Co's Operating Income for the six months ended in Jun. 2014 was £0.30 Mil. Global Lockfety (International) Group Co's Interest Expense for the six months ended in Jun. 2014 was £-0.08 Mil. Global Lockfety (International) Group Co's interest coverage for the quarter that ended in Jun. 2014 was 3.72. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Global Lockfety (International) Group Co's Interest Coverage or its related term are showing as below:

LSE:GLOK' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 5.55
Current: 5.54

LSE:GLOK's Interest Coverage is not ranked
in the Business Services industry.
Industry Median: 13.39 vs LSE:GLOK: 5.54

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

Global Lockfety (International) Group Co Interest Coverage Historical Data

The historical data trend for Global Lockfety (International) Group Co'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.

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Global Lockfety (International) Group Co Interest Coverage Chart

Global Lockfety (International) Group Co Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Interest Coverage

No Debt

2.79

5.81

Global Lockfety (International) Group Co Semi-Annual Data
	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14
Interest Coverage	Get a 7-Day Free Trial				-	16.36	3.81	7.92	3.72

Competitive Comparison of Global Lockfety (International) Group Co's Interest Coverage

For the Security & Protection Services subindustry, Global Lockfety (International) Group 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.

Global Lockfety (International) Group Co's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Global Lockfety (International) Group Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Global Lockfety (International) Group Co's Interest Coverage falls into.

Global Lockfety (International) Group 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

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.

Global Lockfety (International) Group Co's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, Global Lockfety (International) Group Co's Interest Expense was £-0.13 Mil. Its Operating Income was £0.74 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.08 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2013 )	/	Interest Expense (A: Dec. 2013 )
	=	-1	*	0.738	/	-0.127
	=	5.81

Global Lockfety (International) Group Co's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the six months ended in Jun. 2014, Global Lockfety (International) Group Co's Interest Expense was £-0.08 Mil. Its Operating Income was £0.30 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.17 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2014 )	/	Interest Expense (Q: Jun. 2014 )
	=	-1	*	0.301	/	-0.081
	=	3.72

The higher the ratio, the stronger the company's Financial Strength is.

Global Lockfety (International) Group Co (LSE:GLOK) 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 .

Global Lockfety (International) Group Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Global Lockfety (International) Group Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Global Lockfety (International) Group Co (LSE:GLOK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Global Lock Safety (International) Group Co Ltd (LSE:GLOK) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.globallock.com

Global Lock Safety (International) Group Co Ltd was incorporated in the British Virgin Islands on December 29, 2009. It offers long-term security and protection solutions and services to the local retailer store customers. The Company operates in two divisions namely Security solution and Security system integration. Its activities include network alarm services, security projects, property management and value-added services.

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