MedAssets (MedAssets) Interest Coverage : 0.73 (As of Sep. 2015)

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What is MedAssets 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. MedAssets's Operating Income for the three months ended in Sep. 2015 was $8.4 Mil. MedAssets's Interest Expense for the three months ended in Sep. 2015 was $-11.6 Mil. MedAssets's interest coverage for the quarter that ended in Sep. 2015 was 0.73. The higher the ratio, the stronger the company's financial strength is.

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

MDAS's Interest Coverage is not ranked ^*
in the Healthcare Providers & Services industry.
Industry Median: 8.935
* 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.

MedAssets Interest Coverage Historical Data

The historical data trend for MedAssets'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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MedAssets Interest Coverage Chart

MedAssets Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Interest Coverage

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0.59

1.29

1.93

1.02

MedAssets Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Interest Coverage	Get a 7-Day Free Trial															2.16	-	1.47	2.00	0.73

Competitive Comparison of MedAssets's Interest Coverage

For the Health Information Services subindustry, MedAssets'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.

MedAssets's Interest Coverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, MedAssets's Interest Coverage distribution charts can be found below:

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

MedAssets 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.

MedAssets's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, MedAssets's Interest Expense was $-45.6 Mil. Its Operating Income was $46.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $859.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2014 )	/	Interest Expense (A: Dec. 2014 )
	=	-1	*	46.461	/	-45.563
	=	1.02

MedAssets's Interest Coverage for the quarter that ended in Sep. 2015 is calculated as

Here, for the three months ended in Sep. 2015, MedAssets's Interest Expense was $-11.6 Mil. Its Operating Income was $8.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $770.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2015 )	/	Interest Expense (Q: Sep. 2015 )
	=	-1	*	8.428	/	-11.556
	=	0.73

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

MedAssets (NAS:MDAS) 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 .

MedAssets Interest Coverage Related Terms

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

MedAssets (MedAssets) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » MedAssets Inc (NAS:MDAS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.medassets.com

MedAssets Inc was incorporated in 1999. It is a financial and performance improvement company providing technology-enabled products and services that, together, help mitigate the increasing financial challenges faced by hospitals, health systems, and other non-acute healthcare providers. Its solutions are designed to reduce the total cost of care delivery, enhance operational efficiency, align clinical delivery of physicians and staff to advance care coordination, and improve revenue performance mainly for hospitals and health systems. The Company's solutions integrate with its clients' existing operations and enterprise software systems, and require minimal upfront costs or capital expenditures for its clients. Its technology-enabled solutions are delivered through company-hosted software, sometimes referred to as software as a service or Web-based applications, supported by implementation, process improvement consulting and outsourced services, as well as enterprise-wide sales and client management support. The Company manages its business through two business segments, Spend and Clinical Resource Management (CM) and Revenue Cycle Management (RCM). Within the SCM segment it provides a comprehensive suite of cost management services, supply chain analytics and data capabilities that help its clients reduce their total cost of care delivery, enhance their operational efficiency and align their clinicians' delivery of care with advance care coordination. Its solutions lower operating costs through compliance to its strategic sourcing of supplies and purchased services at discounted prices, supply chain outsourcing and procurement services capabilities. It also help to improve care processes and reduce care variations through the use of its clinical and process improvement consulting services, workforce optimization solutions and business analytics and intelligence tools. The Company's RCM segment is a provider of revenue cycle management solutions to healthcare providers, mainly hospitals and health systems. It provides SaaS or Web-based software and technology-enabled services designed to improve revenue performance for healthcare organizations through patient access and financial responsibility, clinical documentation, charge capture and revenue integrity, pricing analysis, claims processing and denials management, payor contract management, extended business office revenue recovery, accounts receivable services and outsourcing. As of December 31, 2013, the Company's client base included more than 4,400 acute care hospitals and approximately 122,000 ancillary or non-acute provider locations. The Company competes with Allscripts Corporation, Epic Systems Corporation, McKesson Corporation, Siemens AG; Accenture Ltd., Accretive Health, Inc., Deloitte & Touche LLP, Ernst & Young LLP, Craneware Inc., Emdeon Inc. and among others. The Company is subject to federal and state laws and regulations designed to protect patients, government

Executives

Anthony Jr Colaluca	officer: Chief Financial Officer	MULTIPLAN CORPORATION, 115 FIFTH AVENUE, NEW YORK NY 10003
Bharat Sundaram	officer: President, SCM Segment	100 NORTH POINT CENTER EAST, SUITE 200, ALPHARETTA GA 30022
C A Piccolo	director	199 BENSON RD, MIDDLEBURY CT 06749
Carol J Zierhoffer	director	100 NORTH POINT CENTER EAST, SUITE 200, ALPHARETTA GA 30022
Kevin M Twomey	director	1650 PRUDENTIAL DR, STE 400, JACKSONVILLE FL 32207
Bruce F Wesson	director	1827 PACIFIC ST BROOKLYN NY 11233
R Halsey Wise	director, officer: Chairman and CEO	135 PONTE VEDRA BLVD, PONTE VEDRA BEACH FL 32082
Samuel K Skinner	director	233 NORTH MICHIGAN AVENUE, 22ND FLOOR, CHICAGO IL 60601
Loucks Vernon R Jr	director	1101 SKOKIE BLVD., SUITE 240, NORTHBROOK IL 60062
Laurence Neil Hunn	officer: President, Revenue Cycle Tech	100 NORTH POINT CENTER EAST, SUITE 200, ALPHARETTA GA 30022
Patrick T Ryan	director, officer: President, SCM Segment	401 EDGEWATER PLACE, SUITE 500, WAKEFIELD MA 01880
Claudius Llc	10 percent owner	C/O GALEN ASSOCIATES 610 FIFTH AVENUE 5TH FLOOR NEW YORK NY 10020
Galen Partners Iii L P	10 percent owner	610 FIFTH AVE 5TH FL NEW YORK NY 10020
Galen Partners International Iii L P	10 percent owner	610 FIFTH AVENUE 5TH FLOOR NEW YORK NY 10020
Galen Employee Fund Iii Lp	10 percent owner	610 FIFTH AVENUE 5TH FLOOR NEW YORK NY 10020