EMC (EMC) Interest Coverage : 21.00 (As of Jun. 2016)

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What is EMC 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. EMC's Operating Income for the three months ended in Jun. 2016 was $882 Mil. EMC's Interest Expense for the three months ended in Jun. 2016 was $-42 Mil. EMC's interest coverage for the quarter that ended in Jun. 2016 was 21.00. The higher the ratio, the stronger the company's financial strength is.

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

EMC's Interest Coverage is not ranked ^*
in the Hardware industry.
Industry Median: 12.555
* 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.

EMC Interest Coverage Historical Data

The historical data trend for EMC'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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EMC Interest Coverage Chart

EMC Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

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20.25

50.18

26.60

27.46

17.32

EMC Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
Interest Coverage	Get a 7-Day Free Trial															16.59	16.83	25.42	10.00	21.00

Competitive Comparison of EMC's Interest Coverage

For the Computer Hardware subindustry, EMC'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.

EMC's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, EMC's Interest Coverage distribution charts can be found below:

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

EMC 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.

EMC's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, EMC's Interest Expense was $-164 Mil. Its Operating Income was $2,841 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,475 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	2841	/	-164
	=	17.32

EMC's Interest Coverage for the quarter that ended in Jun. 2016 is calculated as

Here, for the three months ended in Jun. 2016, EMC's Interest Expense was $-42 Mil. Its Operating Income was $882 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,479 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2016 )	/	Interest Expense (Q: Jun. 2016 )
	=	-1	*	882	/	-42
	=	21.00

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

EMC (NYSE:EMC) 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 .

EMC Interest Coverage Related Terms

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

EMC (EMC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » EMC Corp (NYSE:EMC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.emc.com

EMC Corp is a Massachusetts corporation, incorporated in 1979. The Company together with its subsidiaries supports the businesses and service providers to transform information technology (IT) operations to an as a service model (ITaaS). The Company operates in three segments: EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. The Company's information infrastructure provides a foundation for organizations to store, manage, protect, analyze and secure ever-increasing quantities of information, while at the same time improving business agility, lowering cost and increasing competitive advantage. VMware Virtual Infrastructure provides virtualization infrastructure solutions. Pivotal provides application and data infrastructure software, agile development services and data science consulting. The Company offers a comprehensive portfolio of enterprise storage systems and software - including high-end EMC VMAX and mid-tier EMC VNX unified storage and a portfolio of backup products that support enterprise application workloads. The Company's two additional storage families, EMC Isilon and EMC Atmos, are specifically designed to handle vast quantities of unstructured data. EMC supports a broad range of customers, including service providers, around the world - in every industry, in both public and private sectors, and of sizes ranging from the Fortune 500 to small business and individual consumers. The Company markets its products through direct sales and through multiple distribution channels. It has a direct sales presence throughout North America, Latin America, Europe, the Middle East, South Africa and the Asia Pacific region. The Company also has agreements in place with many partners, including value-added resellers and distributors, cloud service providers, systems integrators, outsourcers, Independent Software Vendors ("ISVs"), and Original Equipment Manufacturers ("OEMs"). The Company competes with many companies in the markets it serve, including companies that offer IT products and services and others that offer specific information storage, protection, security, management and intelligence, data analytics or virtualization products or services.

Executives

Laura Sen	director	ONE MERCER ROAD, P.O. BOX 9601, NATICK MA 01760-9601
John R Egan	director	176 SOUTH ST., HOPKINTON MA 01748
Donald J Carty	director	C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244
Judith A Miscik	director	300 RENAISSANCE CENTER, M/C: 482-C24-A68, DETROIT MI 48265
William D Green	director	C/O ACCENTURE, 161 N CLARK STREET, CHICAGO IL 60601
William F Scannell	officer: President,Global Sales/Cust Op	EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Randolph L Cowen	director	176 SOUTH STREET HOPKINTON MA 01748
Howard D Elias	officer: President & COO, Glob Ent Srvs	C/O EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Paul T Dacier	officer: EVP & General Counsel	EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Erin Mcsweeney	officer: EVP, Human Resources	EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Teuber William J Jr	officer: Vice Chairman	EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
James S Distasio	director	C/O EVERSOURCE ENERGY, 300 CADWELL DRIVE, BOSTON MA 01104
Paul Sagan	director	AKAMAI TECHNOLOGIES INC, 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Jeremy Burton	officer: President, Prod & Marketing	C/O SNOWFLAKE INC., 106 EAST BABCOCK STREET SUITE 3A, BOZEMAN MT 59715
David I Goulden	officer: CEO, EMCII	176 SOUTH STREET, HOPKINTON MA 01748