Stewart Enterprises, (FRA:SWX) Interest Coverage : 2.26 (As of Oct. 2013)

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What is Stewart Enterprises, 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. Stewart Enterprises,'s Operating Income for the three months ended in Oct. 2013 was €10.1 Mil. Stewart Enterprises,'s Interest Expense for the three months ended in Oct. 2013 was €-4.4 Mil. Stewart Enterprises,'s interest coverage for the quarter that ended in Oct. 2013 was 2.26. The higher the ratio, the stronger the company's financial strength is.

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

FRA:SWX' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 3.34
Current: 3.34

FRA:SWX's Interest Coverage is not ranked
in the Personal Services industry.
Industry Median: 9.96 vs FRA:SWX: 3.34

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

Stewart Enterprises, Interest Coverage Historical Data

The historical data trend for Stewart Enterprises,'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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Stewart Enterprises, Interest Coverage Chart

Stewart Enterprises, Annual Data

Trend

Oct04

Oct05

Oct06

Oct07

Oct08

Oct09

Oct10

Oct11

Oct12

Oct13

Interest Coverage

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2.06

2.87

3.83

3.39

3.33

Stewart Enterprises, Quarterly Data
	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13
Interest Coverage	Get a 7-Day Free Trial															3.40	4.48	4.21	2.41	2.26

Competitive Comparison of Stewart Enterprises,'s Interest Coverage

For the Personal Services subindustry, Stewart Enterprises,'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.

Stewart Enterprises,'s Interest Coverage Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Stewart Enterprises,'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where Stewart Enterprises,'s Interest Coverage falls into.

Stewart Enterprises, 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.

Stewart Enterprises,'s Interest Coverage for the fiscal year that ended in Oct. 2013 is calculated as

Here, for the fiscal year that ended in Oct. 2013, Stewart Enterprises,'s Interest Expense was €-17.5 Mil. Its Operating Income was €58.3 Mil. And its Long-Term Debt & Capital Lease Obligation was €177.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Oct. 2013 )	/	Interest Expense (A: Oct. 2013 )
	=	-1	*	58.295	/	-17.484
	=	3.33

Stewart Enterprises,'s Interest Coverage for the quarter that ended in Oct. 2013 is calculated as

Here, for the three months ended in Oct. 2013, Stewart Enterprises,'s Interest Expense was €-4.4 Mil. Its Operating Income was €10.1 Mil. And its Long-Term Debt & Capital Lease Obligation was €177.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Oct. 2013 )	/	Interest Expense (Q: Oct. 2013 )
	=	-1	*	10.051	/	-4.441
	=	2.26

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

Stewart Enterprises, (FRA:SWX) 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 .

Stewart Enterprises, Interest Coverage Related Terms

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

Stewart Enterprises, (FRA:SWX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Stewart Enterprises, Inc. (FRA:SWX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.stewartenterprises.com

Stewart Enterprises, Inc. was founded in 1910, and was incorporated as a Louisiana corporation in 1970 in the State of Louisiana. The Company is a provider of funeral and cemetery products and services in the death care industry in the United States. It owns and operates approximately 217 funeral homes and 141 cemeteries in 24 states within the United States and Puerto Rico. It sells cemetery property and funeral and cemetery products and services both at the time of need and on a preneed basis. The Company's funeral homes offer a complete range of funeral and cremation services and products both at the time of need and on a preneed basis. The Company's services and products include family consultation, removal and preparation of remains, the use of funeral home facilities for visitation, worship and funeral services, transportation services, flowers and caskets. Most of its funeral homes have a non-denominational chapel on the premises, which allows family visitation and religious services to take place at the same location. The Company's cemetery operations sell cemetery property and related merchandise, including lots, lawn crypts, family and community mausoleums, monuments, markers and burial vaults, and also provide burial site openings and closings and inscriptions. It also provides cremation memorialization options including columbariums, cremation niches and cremation gardens. Cemetery property and merchandise sales are made both at the time of need and on a preneed basis. The Company's funeral home and cemetery operations face competition in local markets that are served by numerous funeral home and cemetery firms. It also competes with monument dealers, casket retailers, low-cost funeral providers and crematories, and other non-traditional providers of services or products.