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Dorsett Hospitality International (FRA:KHT) Interest Coverage : 1.70 (As of Mar. 2015)


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What is Dorsett Hospitality International 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. Dorsett Hospitality International's Operating Income for the six months ended in Mar. 2015 was €18.2 Mil. Dorsett Hospitality International's Interest Expense for the six months ended in Mar. 2015 was €-10.7 Mil. Dorsett Hospitality International's interest coverage for the quarter that ended in Mar. 2015 was 1.70. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dorsett Hospitality International's Interest Coverage or its related term are showing as below:

FRA:KHT' s Interest Coverage Range Over the Past 10 Years
Min: 0   Med: 3.67   Max: 4.9
Current: 1.74


FRA:KHT's Interest Coverage is not ranked
in the Travel & Leisure industry.
Industry Median: 5.15 vs FRA:KHT: 1.74

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


Dorsett Hospitality International Interest Coverage Historical Data

The historical data trend for Dorsett Hospitality International'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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Dorsett Hospitality International Interest Coverage Chart

Dorsett Hospitality International Annual Data
Trend Mar11 Mar12 Mar13 Mar14 Mar15
Interest Coverage
3.67 4.90 3.90 2.70 1.74

Dorsett Hospitality International Semi-Annual Data
Sep09 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 3.73 3.98 1.66 1.80 1.70

Competitive Comparison of Dorsett Hospitality International's Interest Coverage

For the Lodging subindustry, Dorsett Hospitality International'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.


Dorsett Hospitality International's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Dorsett Hospitality International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dorsett Hospitality International's Interest Coverage falls into.



Dorsett Hospitality International 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.

Dorsett Hospitality International's Interest Coverage for the fiscal year that ended in Mar. 2015 is calculated as

Here, for the fiscal year that ended in Mar. 2015, Dorsett Hospitality International's Interest Expense was €-20.0 Mil. Its Operating Income was €34.9 Mil. And its Long-Term Debt & Capital Lease Obligation was €435.3 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2015 )/Interest Expense (A: Mar. 2015 )
=-1*34.888/-20.018
=1.74

Dorsett Hospitality International's Interest Coverage for the quarter that ended in Mar. 2015 is calculated as

Here, for the six months ended in Mar. 2015, Dorsett Hospitality International's Interest Expense was €-10.7 Mil. Its Operating Income was €18.2 Mil. And its Long-Term Debt & Capital Lease Obligation was €435.3 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2015 )/Interest Expense (Q: Mar. 2015 )
=-1*18.15/-10.701
=1.70

* 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.


Dorsett Hospitality International  (FRA:KHT) 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 .


Dorsett Hospitality International Interest Coverage Related Terms

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Dorsett Hospitality International (FRA:KHT) Business Description

Traded in Other Exchanges
N/A
Address
Dorsett Hospitality International Ltd owns, operates & manages chain of hotels under brand Dorsett Hotels, D.Collection hotels and Silka Hotels in Hong Kong, Shanghai, Chengdu, Singapore, Malaysia, Johor and London with 23 hotels in operation.

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