Maison Luxe (Maison Luxe) Interest Coverage : 2.94 (As of Dec. 2011)

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What is Maison Luxe 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. Maison Luxe's Operating Income for the three months ended in Dec. 2011 was $0.16 Mil. Maison Luxe's Interest Expense for the three months ended in Dec. 2011 was $-0.05 Mil. Maison Luxe's interest coverage for the quarter that ended in Dec. 2011 was 2.94. The higher the ratio, the stronger the company's financial strength is.

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

MASN's Interest Coverage is not ranked ^*
in the Retail - Cyclical industry.
Industry Median: 7.79
* 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.

Maison Luxe Interest Coverage Historical Data

The historical data trend for Maison Luxe'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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Maison Luxe Interest Coverage Chart

Maison Luxe Annual Data

Trend

Mar10

Mar11

Interest Coverage

1.50

Maison Luxe Quarterly Data
	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11
Interest Coverage	Get a 7-Day Free Trial						-	-	0.66	0.20	2.94

Competitive Comparison of Maison Luxe's Interest Coverage

For the Luxury Goods subindustry, Maison Luxe'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.

Maison Luxe's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Maison Luxe's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Maison Luxe's Interest Coverage falls into.

Maison Luxe 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.

Maison Luxe's Interest Coverage for the fiscal year that ended in Mar. 2011 is calculated as

Here, for the fiscal year that ended in Mar. 2011, Maison Luxe's Interest Expense was $-0.18 Mil. Its Operating Income was $0.27 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.23 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2011 )	/	Interest Expense (A: Mar. 2011 )
	=	-1	*	0.266	/	-0.177
	=	1.50

Maison Luxe's Interest Coverage for the quarter that ended in Dec. 2011 is calculated as

Here, for the three months ended in Dec. 2011, Maison Luxe's Interest Expense was $-0.05 Mil. Its Operating Income was $0.16 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.19 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2011 )	/	Interest Expense (Q: Dec. 2011 )
	=	-1	*	0.156	/	-0.053
	=	2.94

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

Maison Luxe (OTCPK:MASN) 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 .

Maison Luxe Interest Coverage Related Terms

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

Maison Luxe (Maison Luxe) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Maison Luxe Inc (OTCPK:MASN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Bridge Plaza North, Suite 2, Fort Lee, NJ, USA, 07024

Website

https://www.maisonluxeny.com

Maison Luxe Inc offers luxury retail consumer items that are responsibly sourced and affordable. The company operates as a niche high-end luxury goods retailer, helping interested consumers obtain rare luxury items that may otherwise not be reliably available due to the nature of the luxury retail marketplace. It focuses primarily within the fine time piece and jewelry segments, both on a wholesale and business-to-consumer basis.