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Western Sierra Resource (Western Sierra Resource) Interest Coverage : No Debt (1) (As of Sep. 2008)


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What is Western Sierra Resource 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. Western Sierra Resource's Operating Income for the three months ended in Sep. 2008 was $-0.12 Mil. Western Sierra Resource's Interest Expense for the three months ended in Sep. 2008 was $0.00 Mil. Western Sierra Resource has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) 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.

The historical rank and industry rank for Western Sierra Resource's Interest Coverage or its related term are showing as below:


WSRC's Interest Coverage is not ranked *
in the Drug Manufacturers industry.
Industry Median: 12.56
* Ranked among companies with meaningful Interest Coverage only.

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


Western Sierra Resource Interest Coverage Historical Data

The historical data trend for Western Sierra Resource'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.

Western Sierra Resource Interest Coverage Chart

Western Sierra Resource Annual Data
Trend Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A - No Debt - No Debt

Western Sierra Resource Quarterly Data
Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08
Interest Coverage Get a 7-Day Free Trial 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 No Debt No Debt No Debt No Debt No Debt

Competitive Comparison of Western Sierra Resource's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Western Sierra Resource'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.


Western Sierra Resource's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Western Sierra Resource's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Western Sierra Resource's Interest Coverage falls into.



Western Sierra Resource 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.

Western Sierra Resource's Interest Coverage for the fiscal year that ended in Dec. 2007 is calculated as

Here, for the fiscal year that ended in Dec. 2007, Western Sierra Resource's Interest Expense was $0.00 Mil. Its Operating Income was $-0.24 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Western Sierra Resource had no debt (1).

Western Sierra Resource's Interest Coverage for the quarter that ended in Sep. 2008 is calculated as

Here, for the three months ended in Sep. 2008, Western Sierra Resource's Interest Expense was $0.00 Mil. Its Operating Income was $-0.12 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Western Sierra Resource had no debt (1).

* 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.


Western Sierra Resource  (OTCPK:WSRC) 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 .


Western Sierra Resource Interest Coverage Related Terms

Thank you for viewing the detailed overview of Western Sierra Resource's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Western Sierra Resource (Western Sierra Resource) Business Description

Traded in Other Exchanges
N/A
Address
1001 Grand Avenue, Suite 207, Glenwood Springs, CO, USA, 81602
Western Sierra Resource Corp is a multifaceted resource company and revenue producer focused on applying and expanding its $40,500,000 water rights assets. The beneficial uses of its water rights include growing industrial hemp, manufacturing, and undertaking the related eco-friendly, high-yield, project.

Western Sierra Resource (Western Sierra Resource) Headlines

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