Spirit Pub Co (LSE:SPRT) Interest Coverage : 2.10 (As of Feb. 2015)

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What is Spirit Pub Co 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. Spirit Pub Co's Operating Income for the six months ended in Feb. 2015 was £62.7 Mil. Spirit Pub Co's Interest Expense for the six months ended in Feb. 2015 was £-29.9 Mil. Spirit Pub Co's interest coverage for the quarter that ended in Feb. 2015 was 2.10. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Spirit Pub Co's Interest Coverage or its related term are showing as below:

LSE:SPRT' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 1.25 Max: 3.85
Current: 3.85

LSE:SPRT's Interest Coverage is not ranked
in the Travel & Leisure industry.
Industry Median: 5.14 vs LSE:SPRT: 3.85

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

Spirit Pub Co Interest Coverage Historical Data

The historical data trend for Spirit Pub Co'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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Spirit Pub Co Interest Coverage Chart

Spirit Pub Co Annual Data

Trend

Aug08

Aug09

Aug10

Aug11

Aug12

Aug13

Aug14

Interest Coverage

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0.92

0.01

1.58

3.45

Spirit Pub Co Semi-Annual Data
	Aug08	Aug09	Aug10	Feb11	Aug11	Feb12	Aug12	Feb13	Aug13	Feb14	Aug14	Feb15
Interest Coverage	Get a 7-Day Free Trial							1.60	1.55	1.34	5.81	2.10

Competitive Comparison of Spirit Pub Co's Interest Coverage

For the Leisure subindustry, Spirit Pub Co'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.

Spirit Pub Co's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Spirit Pub Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Spirit Pub Co's Interest Coverage falls into.

Spirit Pub Co 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.

Spirit Pub Co's Interest Coverage for the fiscal year that ended in Aug. 2014 is calculated as

Here, for the fiscal year that ended in Aug. 2014, Spirit Pub Co's Interest Expense was £-56.4 Mil. Its Operating Income was £194.5 Mil. And its Long-Term Debt & Capital Lease Obligation was £813.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Aug. 2014 )	/	Interest Expense (A: Aug. 2014 )
	=	-1	*	194.5	/	-56.4
	=	3.45

Spirit Pub Co's Interest Coverage for the quarter that ended in Feb. 2015 is calculated as

Here, for the six months ended in Feb. 2015, Spirit Pub Co's Interest Expense was £-29.9 Mil. Its Operating Income was £62.7 Mil. And its Long-Term Debt & Capital Lease Obligation was £807.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Feb. 2015 )	/	Interest Expense (Q: Feb. 2015 )
	=	-1	*	62.7	/	-29.9
	=	2.10

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

Spirit Pub Co (LSE:SPRT) 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 .

Spirit Pub Co Interest Coverage Related Terms

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

Spirit Pub Co (LSE:SPRT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Spirit Pub Co PLC (LSE:SPRT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.spiritpubcompany.com

Spirit Pub Co PLC was incorporated in England. The Company's trading activities are divided into two divisions; namely a Managed division and a Leased division. The Managed division involves pubs that are directly managed by the Group, and a Leased division which involves the granting of leases to licensees who run the pub as their own business, paying rent to the Group, purchasing beer and other drinks from the Group and entering into profit sharing arrangements for income from leisure machines. The Company holds 794 Managed pubs and 433 Leased pubs. The group operates solely in the United Kingdom.