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DST Systems (DST Systems) Interest Coverage : 10.89 (As of Dec. 2017)


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What is DST Systems 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. DST Systems's Operating Income for the three months ended in Dec. 2017 was $77 Mil. DST Systems's Interest Expense for the three months ended in Dec. 2017 was $-7 Mil. DST Systems's interest coverage for the quarter that ended in Dec. 2017 was 10.89. The higher the ratio, the stronger the company's financial strength is.

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


DST's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 29.505
* 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.


DST Systems Interest Coverage Historical Data

The historical data trend for DST Systems'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.

* Premium members only.

DST Systems Interest Coverage Chart

DST Systems Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.08 9.99 9.78 10.52 10.64

DST Systems Quarterly Data
Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.71 9.47 13.94 8.09 10.89

Competitive Comparison of DST Systems's Interest Coverage

For the Software - Infrastructure subindustry, DST Systems'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.


DST Systems's Interest Coverage Distribution in the Software Industry

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

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



DST Systems 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.

DST Systems'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, DST Systems's Interest Expense was $-27 Mil. Its Operating Income was $285 Mil. And its Long-Term Debt & Capital Lease Obligation was $537 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2017 )/Interest Expense (A: Dec. 2017 )
=-1*285.2/-26.8
=10.64

DST Systems's Interest Coverage for the quarter that ended in Dec. 2017 is calculated as

Here, for the three months ended in Dec. 2017, DST Systems's Interest Expense was $-7 Mil. Its Operating Income was $77 Mil. And its Long-Term Debt & Capital Lease Obligation was $537 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2017 )/Interest Expense (Q: Dec. 2017 )
=-1*77.3/-7.1
=10.89

* 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.


DST Systems  (NYSE:DST) 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 .


DST Systems Interest Coverage Related Terms

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


DST Systems (DST Systems) Business Description

Traded in Other Exchanges
N/A
Address
DST Systems Inc is a provider of information processing and servicing solutions to the financial industry. Clients include asset-management firms, brokerages, retirement funds, and healthcare firms. The company operates three business segments: financial services, healthcare services, and customer communications. DST Systems' largest segment by revenue, financial services, provides transaction processing, account opening and maintenance, reconciliation of trades, positions and cash, corporate actions, regulatory reporting and compliance functions, and tax reporting services. The company generates most of its revenue in the United States of America.
Executives
Samuel G Liss director VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310
Gary D Forsee director C/O INGERSOLL-RAND COMPANY, 155 CHESTNUT RIDGE ROAD, MONTVALE NJ 07645
Joseph C Antonellis director STATE STREET CORPORATION, ONE LINCOLN STREET, BOSTON MA 02111
Charles E Haldeman director C/O JBG/OPERATING PARTNERS, L.P., 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815
Edmund J Burke officer: President of Subsidiary 1290 BROADWAY, SUITE 1100, DENVER CO 80203
Lynn Dorsey Bleil director 333 WEST 11TH STREET, KANSAS CITY MO 64105
Stephen C Hooley director, officer: Chairman, CEO & President 2355 WAUKEGAN ROAD, BANNOCKBURN IL 60015
A Edward Allinson director STATE STREET BOSTON CORP 225 FRANKLIN STREET BOSTON MA 02110
John W Clark director 949 SOUTH COAST DRIVE, SUITE 650, COSTA MESA CA 92626
George L Argyros director ARNEL & AFFILIATES, 949 SOUTH COAST DR SUITE 600, COSTA MESA CA 92626
Lawrence M Higby director C/O APRIA HEALTHCARE GROUP INC, 26220 ENTERPRISE COURT, LAKE FOREST CA 92630
Thomas A Mcdonnell director, officer: CEO & Director C/O KANSAS CITY SOUTHERN, 427 W 12TH STREET, KANSAS CITY MO 64105
M Jeannine Strandjord other: Retired Director as of 5/9/12
William C Nelson director 6521 WE NONGA TERRACE, MISSION HILLS KY 66208
Thomas A Mccullough director C/O DST SYSTEMS, 333 WEST 11TH ST 5TH FL, KANSAS CITY MO 64105