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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. Nexeo Solutions's Operating Income for the three months ended in Dec. 2018 was $34 Mil. Nexeo Solutions's Interest Expense for the three months ended in Dec. 2018 was $-14 Mil. Nexeo Solutions's interest coverage for the quarter that ended in Dec. 2018 was 2.49. The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Nexeo Solutions's Interest Coverage or its related term are showing as below:
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
The historical data trend for Nexeo Solutions'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.
Nexeo Solutions Annual Data | |||||||||||
Trend | Dec14 | Dec15 | Sep16 | Sep17 | Sep18 | ||||||
Interest Coverage | No Debt | - | 0.44 | 1.32 | 1.85 |
Nexeo Solutions Quarterly Data | ||||||||||||||||||||
Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | |
Interest Coverage | Get a 7-Day Free Trial | 3.12 | 2.35 | 2.97 | - | 2.49 |
For the Chemicals subindustry, Nexeo Solutions'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.
For the Chemicals industry and Basic Materials sector, Nexeo Solutions's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nexeo Solutions's Interest Coverage falls into.
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.
Nexeo Solutions's Interest Coverage for the fiscal year that ended in Sep. 2018 is calculated as
Here, for the fiscal year that ended in Sep. 2018, Nexeo Solutions's Interest Expense was $-53 Mil. Its Operating Income was $97 Mil. And its Long-Term Debt & Capital Lease Obligation was $752 Mil.
Interest Coverage | = | -1 | * | Operating Income (A: Sep. 2018 ) | / | Interest Expense (A: Sep. 2018 ) |
= | -1 | * | 97.2 | / | -52.6 | |
= | 1.85 |
Nexeo Solutions's Interest Coverage for the quarter that ended in Dec. 2018 is calculated as
Here, for the three months ended in Dec. 2018, Nexeo Solutions's Interest Expense was $-14 Mil. Its Operating Income was $34 Mil. And its Long-Term Debt & Capital Lease Obligation was $805 Mil.
Interest Coverage | = | -1 | * | Operating Income (Q: Dec. 2018 ) | / | Interest Expense (Q: Dec. 2018 ) |
= | -1 | * | 33.6 | / | -13.5 | |
= | 2.49 |
* 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.
Nexeo Solutions (NAS:NXEO) 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 .
Thank you for viewing the detailed overview of Nexeo Solutions's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
James G Coulter | 10 percent owner, other: Former 10% Owner | 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102 |
Thomas E Zacharias | director | C/O W P CAREY & CO LLC, 50 ROCKEFELLER PLAZA, NEW YORK NY 10020 |
Brian Herington | officer: Executive VP, Chemicals | 3 WATERWAY SQUARE PLACE, SUITE 1000, THE WOODLANDS TX 77380 |
Steven T Romick | 10 percent owner | 11400 W OLYMPIC BLVD, STE 1200, LOS ANGELES CA 90064 |
Mark Landecker | 10 percent owner | 11400 W. OLYMPIC BLVD., STE. 1200, LOS ANGELES CA 90064 |
J Richard Atwood | 10 percent owner | |
Brian A. Selmo | 10 percent owner | 11400 W. OLYMPIC BLVD., STE. 1200, LOS ANGELES CA 90064 |
Gabriela Garcia | officer: Controller | 1301 RIVERPLACE BOULEVARD, SUITE 2300, JACKSONVILLE FL 32207 |
David A. Bradley | director, officer: President & CEO | 15710 JOHN F. KENNDEY BLVD, SUITE 300, HOUSTON TX 77032 |
Dan F Smith | director | 1221 MCKINNEY STREET, SUITE 700, HOUSTON TX 77010 |
Kenneth Michael Burke | director | 11742 RIVERVIEW DRIVE, HOUSTON TX 77007 |
Ross Crane | officer: EVP & CFO | 3 WATERWAY SQUARE PLACE, SUITE 1000, THE WOODLANDS TX 77380 |
Tpg Advisors Vi, Inc. | other: Former 10% Owner | 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102 |
Tpg Group Holdings (sbs) Advisors, Inc. | other: Former 10% Owner | C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102 |
David Bonderman | other: Former 10% Owner | 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102 |
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