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Chicago Bridge & Iron Co NV (Chicago Bridge & Iron Co NV) Interest Coverage : 1.97 (As of Mar. 2018)


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What is Chicago Bridge & Iron Co NV 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. Chicago Bridge & Iron Co NV's Operating Income for the three months ended in Mar. 2018 was $103 Mil. Chicago Bridge & Iron Co NV's Interest Expense for the three months ended in Mar. 2018 was $-52 Mil. Chicago Bridge & Iron Co NV's interest coverage for the quarter that ended in Mar. 2018 was 1.97. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Chicago Bridge & Iron Co NV's Interest Coverage or its related term are showing as below:


CBI's Interest Coverage is not ranked *
in the Construction industry.
Industry Median: 7.055
* 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.


Chicago Bridge & Iron Co NV Interest Coverage Historical Data

The historical data trend for Chicago Bridge & Iron Co NV'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.

Chicago Bridge & Iron Co NV Interest Coverage Chart

Chicago Bridge & Iron Co NV Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.64 11.93 13.85 6.78 -

Chicago Bridge & Iron Co NV Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
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 2.96 - 5.57 0.91 1.97

Competitive Comparison of Chicago Bridge & Iron Co NV's Interest Coverage

For the Engineering & Construction subindustry, Chicago Bridge & Iron Co NV'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.


Chicago Bridge & Iron Co NV's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Chicago Bridge & Iron Co NV's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Chicago Bridge & Iron Co NV's Interest Coverage falls into.



Chicago Bridge & Iron Co NV 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.

Chicago Bridge & Iron Co NV's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, Chicago Bridge & Iron Co NV's Interest Expense was $-229 Mil. Its Operating Income was $-229 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

Chicago Bridge & Iron Co NV did not have earnings to cover the interest expense.

Chicago Bridge & Iron Co NV's Interest Coverage for the quarter that ended in Mar. 2018 is calculated as

Here, for the three months ended in Mar. 2018, Chicago Bridge & Iron Co NV's Interest Expense was $-52 Mil. Its Operating Income was $103 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2018 )/Interest Expense (Q: Mar. 2018 )
=-1*103.363/-52.452
=1.97

* 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.


Chicago Bridge & Iron Co NV  (NYSE:CBI) 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 .


Chicago Bridge & Iron Co NV Interest Coverage Related Terms

Thank you for viewing the detailed overview of Chicago Bridge & Iron Co NV's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Chicago Bridge & Iron Co NV (Chicago Bridge & Iron Co NV) Business Description

Traded in Other Exchanges
N/A
Address
Founded in 1889, Chicago Bridge & Iron provides a wide range of services, including conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management, and environmental services, to customers in the global energy infrastructure market. It also provides diversified government services. It generated 2017 adjusted revenue and adjusted EBIT of $5.8 billion and a loss of $180 million, respectively. CB&I employs 34,000 at active projects in more than 70 countries.
Executives
James H Miller director C/O CROWN HOLDINGS, INC., 770 TOWNSHIP LINE ROAD, YARDLEY PA 19067
W Craig Kissel director
Alexander Forbes I J director 10560 DR. MARTIN LUTHER KING JR. ST N, ST. PETERSBURG FL 33716-3718
Deborah M Fretz director 1801 MARKET STREET, PHILADELPHIA PA 19103
L Richard Flury director 2000 W SAM HOUSTON PKWY S, SUITE 2000, HOUSTON TX 77042
Richard W. Heo officer: Executive Vice President 2103 RESEARCH FOREST DRIVE, THE WOODLANDS TX 77380
Westley S. Stockton officer: VP, Controller, CAO 2103 RESEARCH FOREST DRIVE, THE WOODLANDS TX 77380
James R Bolch director C/O INGERSOLL-RAND COMPANY, 155 CHESTNUT RIDGE ROAD, MONTVALE NJ 07645
Marsha C Williams director EQUITY OFFICE PROPERTIES, CHICAGO IL 60606
Michael S Taff officer: Executive Vice President & CFO 777 N ELDRIDGE PARKWAY, HOUSTON TX 77079
Larry D Mcvay director 2000 W SAM HOUSTON PKWY S, SUITE 2000, HOUSTON TX 77042
Philip K Asherman director, officer: President and CEO 1450 LAKE ROBBINS DR.,, SUITE 400, THE WOODLANDS TX 77380
Chandler Richard E Jr officer: EVP and Chief Legal Officer 1800 HUGHES LANDING BLVD, SUITE 250, THE WOODLANDS TX 77380
Sheila B Feldman officer: Executive Vice President
Ronald A Ballschmiede officer: Executive Vice President & CFO 1800 HUGHES LANDING BLVD, SUITE 250, THE WOODLANDS TX 77380

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