Web.com Group (Web.com Group) Interest Coverage : 2.20 (As of Jun. 2018)

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What is Web.com Group 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. Web.com Group's Operating Income for the three months ended in Jun. 2018 was $18.4 Mil. Web.com Group's Interest Expense for the three months ended in Jun. 2018 was $-8.3 Mil. Web.com Group's interest coverage for the quarter that ended in Jun. 2018 was 2.20. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Web.com Group's Interest Coverage or its related term are showing as below:

WEB's Interest Coverage is not ranked ^*
in the Interactive Media industry.
Industry Median: 38.9
* 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.

Web.com Group Interest Coverage Historical Data

The historical data trend for Web.com Group'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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Web.com Group Interest Coverage Chart

Web.com Group Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Interest Coverage

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0.35

1.49

3.11

1.88

2.73

Web.com Group Quarterly Data
	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18
Interest Coverage	Get a 7-Day Free Trial															2.82	2.80	2.62	2.09	2.20

Competitive Comparison of Web.com Group's Interest Coverage

For the Internet Content & Information subindustry, Web.com Group'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.

Web.com Group's Interest Coverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Web.com Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Web.com Group's Interest Coverage falls into.

Web.com Group 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.

Web.com Group's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, Web.com Group's Interest Expense was $-33.1 Mil. Its Operating Income was $90.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $630.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2017 )	/	Interest Expense (A: Dec. 2017 )
	=	-1	*	90.166	/	-33.061
	=	2.73

Web.com Group's Interest Coverage for the quarter that ended in Jun. 2018 is calculated as

Here, for the three months ended in Jun. 2018, Web.com Group's Interest Expense was $-8.3 Mil. Its Operating Income was $18.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $638.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2018 )	/	Interest Expense (Q: Jun. 2018 )
	=	-1	*	18.37	/	-8.334
	=	2.20

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

Web.com Group (NAS:WEB) 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 .

Web.com Group Interest Coverage Related Terms

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

Web.com Group (Web.com Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Web.com Group Inc (NAS:WEB) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.web.com

Web.com Group Inc provides a range of internet services to small businesses to help them compete and succeed online. The company offers a range of Web services and products that enable small businesses to establish, maintain, promote, and optimize their online presence. It meets the needs of small businesses anywhere along their lifecycle with affordable, subscription-based solutions including domains, hosting, website design and management, search engine optimization, online marketing campaigns, local sales leads, social media, mobile products and E-commerce solutions. Geographically, the group operates through the market of United States and derives revenue through source of subscription.

Executives

Kevin M Carney	officer: Executive Vice President	12735 GRAN BAY PARKWAY WEST, BUILDING 200, JACKSONVILLE FL 32258
Timothy I Maudlin	director	18739 VOGEL FARM TRAIL, EDEN PRAIRIE MN 55347
Hugh M Durden	director
Timothy Cost	director
Ahmet H Okumus	10 percent owner	C/O OKUMUS FUND MANAGEMENT LTD., 767 THIRD AVENUE, 35TH FLOOR, NEW YORK NY 10022
Okumus Opportunistic Value Fund Ltd.	10 percent owner	CRAIGMUIR CHAMBERS, SUITE 71, ROAD TOWN, TORTOLA D8 VG 1110
Okumus Fund Management Ltd.	10 percent owner	767 THIRD AVENUE, 35TH FLOOR, NEW YORK NY 10017
Anton J Levy	director	55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
General Atlantic, L.p.	10 percent owner, other: *See Remarks	55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Gapstar Llc	10 percent owner, other: *See Remarks	55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Gapco Gmbh & Co Kg	10 percent owner, other: *See Remarks	C/O GENERAL ATLANTIC SERVICE COMPANY, 55 EAST 52ND ST. 32ND FLOOR, NEW YORK NY 10055
Management Gmbh Gapco	10 percent owner, other: *See Remarks	C/O GENERAL ATLANTIC SERVICE COMPANY, 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Gap-w, Llc	10 percent owner, other: *See Remarks	55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
General Atlantic Genpar, L.p.	10 percent owner, other: *See Remarks	55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
General Atlantic Partners 83, L.p.	10 percent owner, other: *See Remarks	55 EAST 52ND STREET, 32ND FLOOR NEW YORK NY 10055