CSP (CSPI) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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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. CSP's Operating Income for the three months ended in Dec. 2023 was $-0.34 Mil. CSP's Interest Expense for the three months ended in Dec. 2023 was $-0.05 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

CSPI' s Interest Coverage Range Over the Past 10 Years
Min: 0.66 Med: 14.36 Max: 46.51
Current: 0.66

CSPI's Interest Coverage is ranked worse than
96.57% of 1602 companies
in the Software industry
Industry Median: 29.54 vs CSPI: 0.66

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

CSP Interest Coverage Historical Data

The historical data trend for CSP'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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CSP Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

7.14

CSP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Take a 7-Day Free Trial															21.31	3.82	7.01	-	-

Competitive Comparison

For the Information Technology Services subindustry, CSP'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.

CSP Interest Coverage Distribution

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

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

CSP 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.

CSP's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, CSP's Interest Expense was $-0.26 Mil. Its Operating Income was $1.87 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.48 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	1.87	/	-0.262
	=	7.14

CSP's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, CSP's Interest Expense was $-0.05 Mil. Its Operating Income was $-0.34 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.35 Mil.

CSP did not have earnings to cover the interest expense.

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

CSP (NAS:CSPI) 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 .

CSP Interest Coverage Related Terms

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

CSP (CSPI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » CSP Inc (NAS:CSPI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

175 Cabot Street, Suite 210, Lowell, MA, USA, 01854

Website

https://www.cspi.com

CSP Inc along with its subsidiaries develops and markets IT integration solutions, security products, managed IT services, cloud services, purpose-built network adapters, and high-performance cluster computer systems. The firm operates in two segments namely Technology Solutions, where the company focus on value-added reseller integrated solutions including third-party hardware, software, and technical computer-related consulting, and High-Performance Products segments, where the company design, manufacture and deliver products and services to customers that require specialized cyber security services, networking and signal processing. It generates a majority of its revenue from the Technology Solutions segment. Geographically, the company generates its maximum revenue from the Americas.

Executives

Joseph R Nerges	10 percent owner	1726 BUNDY ST, SCRANTON PA 18508
Gary Southwell	officer: VP and GM	175 CABOT STREET, SUITE 210, LOWELL MA 01854
Mike Newbanks	officer: VP Finance & CAO	1182 E NEWPORT CENTER DRIVE, DEERFIELD BEACH FL 33442
Gary W Levine	officer: CFO	215 BUNKER HILL ST., CHARLESTOWN MA 02129
Victor Dellovo	officer: President and CEO	1182 EAST NEWPORT CENTER DRIVE, DEERFIELD BEACH FL 33442-8126
C Shelton James	director	GROUP LONG DISTANCE INC, 1451 W CYPRESS CREEK RD STE 200, FT LAUDERDALE FL 33309
Ismail Azeri	director	175 CABOT STREET, SUITE 210, LOWELL MA 01854
John M Leydon	officer: VP Finance Chief Acct Officer	2 BECK STREET, NEWBURYPORT MA 01950
Blackmon Raymond Charles Jr	director	155 VIOLET PLACE, EUFAULA AL 36027
Marilyn T Smith	director	10349 MAIN STREET, FAIRFAX VA 22030
Robert E Bunnett	director	733 MEDITERRANEAN LANE, REDWOOD CITY CA 94065
Julian Demora	other: Investor	P.O.BOX 220139, HOLLYWOOD FL 33022
Christopher Hall	director, 10 percent owner	671 NORTHEAST 105TH ST, MIAMI SHORES FL 33138
Robert Michael Williams	director	P.O. 296, BREWSTER MA 02631
Robert A Stellato	officer: Chief Accounting Officer	43 MANNING ROAD, BILLERICA MA 01821