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CommVault Systems, Inc. (NAS:CVLT)
Interest Coverage
10,000.00 (As of Dec. 2013)

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. CommVault Systems, Inc.'s Operating Income for the three months ended in Dec. 2013 was $27.7 Mil. CommVault Systems, Inc.'s Interest Expense for the three months ended in Dec. 2013 was $0.0 Mil. CommVault Systems, Inc.'s interest coverage for the quarter that ended in Dec. 2013 was 10,000.00. The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

CommVault Systems, Inc. has no debt.

CVLT' s 10-Year Interest Coverage Range
Min: 23.21   Max: 9999.99
Current: No Debt

23.21
9999.99

During the past 12 years, the highest interest coverage of CommVault Systems, Inc. was 9999.99. The lowest was 23.21. And the median was 337.46.

CVLT's Interest Coverageis ranked higher than
82% of the 1077 Companies
in the Global Software - Application industry.

( Industry Median: 403.68 vs. CVLT: No Debt )

Definition

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

CommVault Systems, Inc. did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt is 0, or Interest Expense is positive, then

CommVault Systems, Inc. had no debt.

CommVault Systems, Inc.'s Interest Coverage for the fiscal year that ended in Mar. 2013 is calculated as

Here, for the fiscal year that ended in Mar. 2013, CommVault Systems, Inc.'s Interest Expense was $0.0 Mil. Its Operating Income was $80.9 Mil. And its Long-Term Debt was $0.0 Mil.

CommVault Systems, Inc. had no debt.

CommVault Systems, Inc.'s Interest Coverage for the quarter that ended in Dec. 2013 is calculated as

Here, for the three months ended in Dec. 2013, CommVault Systems, Inc.'s Interest Expense was $0.0 Mil. Its Operating Income was $27.7 Mil. And its Long-Term Debt was $0.0 Mil.

CommVault Systems, Inc. had no debt.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The higher the ratio, the stronger the company’s financial strength is.


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.


Related Terms

Operating Income, Interest Expense, Financial Strength


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

CommVault Systems, Inc. Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
interest_coverage No Debt23.211,421.7150.83207.67117.18300.46337.46864.89No Debt

CommVault Systems, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
interest_coverage 484.483,080.00No DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo DebtNo Debt
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