Headwaters (Headwaters) Interest Coverage : 1.78 (As of Mar. 2017)

Headwaters Interest Coverage Chart

Headwaters Annual Data
	Trend	Sep07	Sep08	Sep09	Sep10	Sep11	Sep12	Sep13	Sep14	Sep15	Sep16
Interest Coverage		Get a 7-Day Free Trial					0.65	1.28	1.44	1.59	2.61

Headwaters Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Interest Coverage	Get a 7-Day Free Trial															1.51	3.89	2.23	2.17	1.78

Competitive Comparison of Headwaters's Interest Coverage

For the Building Materials subindustry, Headwaters'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.

Headwaters's Interest Coverage Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Headwaters's Interest Coverage distribution charts can be found below:

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

Headwaters 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Headwaters's Interest Coverage for the fiscal year that ended in Sep. 2016 is calculated as

Here, for the fiscal year that ended in Sep. 2016, Headwaters's Interest Expense was $-42 Mil. Its Operating Income was $111 Mil. And its Long-Term Debt & Capital Lease Obligation was $747 Mil.

Headwaters's Interest Coverage for the quarter that ended in Mar. 2017 is calculated as

Here, for the three months ended in Mar. 2017, Headwaters's Interest Expense was $-8 Mil. Its Operating Income was $15 Mil. And its Long-Term Debt & Capital Lease Obligation was $741 Mil.

* 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.

Headwaters  (NYSE:HW) 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 .

Headwaters Interest Coverage Related Terms

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

Headwaters (Headwaters) Business Description