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FirstCash Holdings (FirstCash Holdings) Interest Coverage : 4.56 (As of Dec. 2023)


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What is FirstCash Holdings 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. FirstCash Holdings's Operating Income for the three months ended in Dec. 2023 was $121 Mil. FirstCash Holdings's Interest Expense for the three months ended in Dec. 2023 was $-27 Mil. FirstCash Holdings's interest coverage for the quarter that ended in Dec. 2023 was 4.56. The higher the ratio, the stronger the company's financial strength is.

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

FCFS' s Interest Coverage Range Over the Past 10 Years
Min: 4.02   Med: 7.05   Max: 9.67
Current: 4.18


FCFS's Interest Coverage is ranked worse than
80% of 165 companies
in the Credit Services industry
Industry Median: 69.76 vs FCFS: 4.18

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


FirstCash Holdings Interest Coverage Historical Data

The historical data trend for FirstCash Holdings'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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FirstCash Holdings Interest Coverage Chart

FirstCash Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.60 6.68 6.09 4.02 4.18

FirstCash Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 4.82 3.97 3.83 4.24 4.56

Competitive Comparison of FirstCash Holdings's Interest Coverage

For the Credit Services subindustry, FirstCash Holdings'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.


FirstCash Holdings's Interest Coverage Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, FirstCash Holdings's Interest Coverage distribution charts can be found below:

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



FirstCash Holdings 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.

FirstCash Holdings's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, FirstCash Holdings's Interest Expense was $-93 Mil. Its Operating Income was $390 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,821 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*389.614/-93.243
=4.18

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

Here, for the three months ended in Dec. 2023, FirstCash Holdings's Interest Expense was $-27 Mil. Its Operating Income was $121 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,821 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*121.344/-26.586
=4.56

* 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.


FirstCash Holdings  (NAS:FCFS) 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 .


FirstCash Holdings Interest Coverage Related Terms

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


FirstCash Holdings (FirstCash Holdings) Business Description

Traded in Other Exchanges
Address
1600 West 7th Street, Fort Worth, TX, USA, 76102
FirstCash Holdings Inc operates pawn stores in the United States and Latin America. Its primary business involves making small loans secured by personal property. These pawn loans give the borrower the option of either repaying the loans with interest or forfeiting the property without further penalty. Close to 30% of total company revenue comes from interest earned on the loans. Close to 70% of total revenue comes from reselling forfeited property in the company's retail stores. Revenue is split almost equally between loans made in the United States, where the company has more than 300 retail locations, and loans made in Latin America, where the company has over 700 locations in Mexico and several more in Guatemala.
Executives
R Douglas Orr officer: EVP & Chief Financial Officer 1600 WEST 7TH STREET, FORT WORTH TX 76102
Douglas Richard Rippel director, 10 percent owner 8425 MYSTIC LAKES, MAIZE KS 67101
Randel G Owen director C/O EMERGENCY MEDICAL SERVICES CORP, 6200 SOUTH SYRACUSE WAY, GREENWOOD VILLAGE CO 80111
Howard F Hambleton officer: AFF President 1660 WEST 7TH ST., FORT WORTH TX 76102
Raul Ramos officer: SVP Latin American Operations 1600 WEST 7TH STREET, FORT WORTH TX 76102
James H Graves director ERWIN GRAVES & ASSOCIATES, 2100 MCKINNEY AVE STE 900, DALLAS TX 75205
Marthea Davis director 1600 WEST 7TH ST., FORT WORTH TX 76102
Douglas R. Rippel Revocable Trust 10 percent owner 7570 W. 21ST STREET N, BUILDING 1010, SUITE C, WICHITA KS 67205
Aff Services, Inc. 10 percent owner 7570 W. 21ST STREET N, BUILDING 1010, SUITE C, WICHITA KS 67205
Paula K Garrett director 1600 WEST 7TH ST, FORT WORTH TX 76102
Mikel D Faulkner director 180 STATE STREET 200, SOUTHLAKE TX 76092
Daniel R Feehan director CASH AMERICA INTL INC, 1600 W &TH ST, FORT WORTH TX 76102
Thomas Brent Stuart officer: President and COO 1600 W. 7TH STREET, FORT WORTH TX 76102
Anna M Alvarado officer: General Counsel 1600 WEST 7TH STREET, FORT WORTH TX 76102
Daniel E Berce director 801 CHERRY STREET, SUITE 3900, C/O GM FINANCIAL COMPANY, INC., FORT WORTH TX 76102

FirstCash Holdings (FirstCash Holdings) Headlines

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