Inmet Mining (FRA:MMC) Interest Coverage : 13.95 (As of Dec. 2012)

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What is Inmet Mining 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. Inmet Mining's Operating Income for the three months ended in Dec. 2012 was €28.0 Mil. Inmet Mining's Interest Expense for the three months ended in Dec. 2012 was €-2.0 Mil. Inmet Mining's interest coverage for the quarter that ended in Dec. 2012 was 13.95. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Inmet Mining's Interest Coverage or its related term are showing as below:

FRA:MMC' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 40.42
Current: 40.42

FRA:MMC's Interest Coverage is not ranked
in the Metals & Mining industry.
Industry Median: No Debt vs FRA:MMC: 40.42

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

Inmet Mining Interest Coverage Historical Data

The historical data trend for Inmet Mining'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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Inmet Mining Interest Coverage Chart

Inmet Mining Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Interest Coverage

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185.33

200.26

68.54

36.79

44.42

Inmet Mining Quarterly Data
	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12
Interest Coverage	Get a 7-Day Free Trial															245.90	49.28	33.85	65.31	13.95

Competitive Comparison of Inmet Mining's Interest Coverage

For the Other Industrial Metals & Mining subindustry, Inmet Mining'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.

Inmet Mining's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Inmet Mining's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Inmet Mining's Interest Coverage falls into.

Inmet Mining 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.

Inmet Mining's Interest Coverage for the fiscal year that ended in Dec. 2012 is calculated as

Here, for the fiscal year that ended in Dec. 2012, Inmet Mining's Interest Expense was €-7.7 Mil. Its Operating Income was €340.8 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,493.7 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2012 )	/	Interest Expense (A: Dec. 2012 )
	=	-1	*	340.8	/	-7.673
	=	44.42

Inmet Mining's Interest Coverage for the quarter that ended in Dec. 2012 is calculated as

Here, for the three months ended in Dec. 2012, Inmet Mining's Interest Expense was €-2.0 Mil. Its Operating Income was €28.0 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,493.7 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2012 )	/	Interest Expense (Q: Dec. 2012 )
	=	-1	*	27.987	/	-2.006
	=	13.95

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

Inmet Mining (FRA:MMC) 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 .

Inmet Mining Interest Coverage Related Terms

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

Inmet Mining (FRA:MMC) Business Description

Industry

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Traded in Other Exchanges

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Address

Website

Inmet Mining Corporation is a Canadian-based global mining company that produces base metals with a focus on copper. It operates and develops underground and open pit mines safely, responsibly and cost effectively. The Company has three operating properties and one development property around the world. Ã‡ayeli is an underground mine on the Black Sea coast of northeastern Turkey. It produces copper and zinc concentrates, which are sold to international and domestic smelters and traders. Las Cruces is an open pit mine in southern Spain. Las Cruces uses leaching and electrowinning technology to produce copper cathode which are sold to buyers in the Spanish and Mediterranean markets. PyhÃ¤salmi is an underground copper and zinc mine in central Finland. It produces copper, zinc and pyrite concentrates. Copper and zinc concentrates are sold under long-term contracts to smelters in Finland. Pyrite is sold under contract to customers in Europe and Asia as well as in the spot market. Cobre Panama is an open pit copper development project in Panama.