It should be accompanied by an examination of the debt interest coverage ratio.
Junk-financed Company B's access to capital is limited and its interest coverage is less than 2 for 1.
On's interest coverage ratio is 5.2, compared with 4.6 for TXU in America and 3.1 for Eni in Italy.
First, Drexel Burnham's Michael Milken made bonds respectable even when a company was highly leveraged and its interest coverage thin.
How will that answer affect cash flow, interest coverage and leverage?
As the table below shows, these factors have enabled Nokia to maintain a healthy interest coverage ratio and quick ratio (nearly equal to the industry average), dispensing any immediate liquidity concerns.
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Now Bucksbaum will hike his company's debt ratio from 56% to 70% and drive down its interest coverage (earnings before interest, taxes, depreciation and amortization divided by interest) from two to 1.6 times.
To put some figures around the issue, the ratings agency notes a debt to EBITDA ratio of 23, which has swelled from just 2 times earnings a year ago, and interest coverage down to 0.6 times from 3.7 times.
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Other companies that have low interest-coverage ratios or short-lived reserves include Rutherford-Moran Oil Corp.
Apart from suspect liabilities, firms such as Fujita, Kumagai Gumi, Tokyu, Aoki and Sato Kogyo all have interest-rate coverage ratios (operating income plus interest and dividends divided by interest expenses) below 1.4 on a consolidated basis less than half the industry average.
Fujita has the weakest balance sheet of all, with an interest-rate coverage of 0.8.
But he also uses sentiment indicators (like put-call ratios, short interest and media coverage) in his analysis and applies contrarian logic.
My mother, who still lives in the San Francisco Bay Area, is also not attending, but she is delighted by all of the interest and earthquake coverage.
An adequate coverage of interest expense signifies that debt instruments are reasonably secure investments.
The Journal's evidence is that the cyber-espionage goes well beyond specific stories to a general interest in sources and coverage.
Adequate coverage of interest expenses is a sign of security for investors, as it ensures that the company can meet its obligations related to senior debt instruments.
It should come as no surprise that we have been watching the coverage with some interest and have some thoughts of our own to share.
Under the new program, the FDIC will provide full insurance coverage for non-interest- bearing accounts until the end of next year.
This phenomenon would be far worse had not the FDIC extended unlimited insurance coverage to non-interest-bearing deposit accounts through the end of 2012.
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Media interest in the new Blair regime limits coverage of the Tories.
The Award judges were also impressed by the media coverage and big-time venture capital interest in Min.us.
The problem for Russian journalists is that most of their compatriots are too poor to interest advertisers, and thus to pay for good news coverage.
"The place was sold out and I've seen loads of coverage in the papers so there's still interest in Audley Harrison, " he said.
Debt-service coverage is defined as EBITDA, or earnings before interest, taxes, depreciation and amortization, relative to the current portion of long-term debt and interest.
Darryl Sterling, an analyst at the Yankee Group, a telecom consulting firm in Boston, expects the December auction to draw some interest from big carriers seeking to fill in gaps in national coverage or lesser ones trying to expand in small markets.
The peak of her green interest was in the late 80s - a time of bubbling media coverage of acid rain, climate, waste and rainforest destruction.
He detailed numbers of interest to police at the time and explained attempts to define the coverage and "footprint" of various masts within Omagh and surrounding areas.
The cases received increasing news coverage in a fast-changing landscape that saw a proliferation of media outlets with growing interest in compelling visual images -- such as a heart-rending photo of a smiling child or video of parents pleading for their child's safe return.
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