Jack Henry & Associates (Jack Henry & Associates) Interest Coverage

: 30.78 (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. Jack Henry & Associates's Operating Income for the three months ended in Dec. 2023 was $119 Mil. Jack Henry & Associates's Interest Expense for the three months ended in Dec. 2023 was $-4 Mil. Jack Henry & Associates's interest coverage for the quarter that ended in Dec. 2023 was 30.78. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Jack Henry & Associates's Interest Coverage or its related term are showing as below:

JKHY' s Interest Coverage Range Over the Past 10 Years
Min: 26.68 Med: 250.09 Max: 553.24
Current: 26.68

JKHY's Interest Coverage is ranked worse than
52.22% of 1599 companies
in the Software industry
Industry Median: 29.77 vs JKHY: 26.68

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

Jack Henry & Associates Interest Coverage Historical Data

The historical data trend for Jack Henry & Associates'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.

Jack Henry & Associates Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

375.04

553.24

348.53

199.09

31.89

Jack Henry & Associates Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																31.53	23.23	22.90	31.62	30.78

Competitive Comparison

For the Information Technology Services subindustry, Jack Henry & Associates'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.

Jack Henry & Associates Interest Coverage Distribution

For the Software industry and Technology sector, Jack Henry & Associates's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Jack Henry & Associates's Interest Coverage falls into.

Jack Henry & Associates 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.

Jack Henry & Associates's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Jack Henry & Associates's Interest Expense was $-15 Mil. Its Operating Income was $481 Mil. And its Long-Term Debt & Capital Lease Obligation was $275 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	480.688	/	-15.073
	=	31.89

Jack Henry & Associates's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Jack Henry & Associates's Interest Expense was $-4 Mil. Its Operating Income was $119 Mil. And its Long-Term Debt & Capital Lease Obligation was $255 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	118.967	/	-3.865
	=	30.78

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

Jack Henry & Associates (NAS:JKHY) 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 .

Jack Henry & Associates Interest Coverage Related Terms

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

Jack Henry & Associates (Jack Henry & Associates) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Jack Henry & Associates Inc (NAS:JKHY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

JHY:Germany JHY:Germany J1KH34:Brazil

Address

663 Highway 60, P.O. Box 807, Monett, MO, USA, 65708

Website

https://www.jackhenry.com

Jack Henry is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing, and loan processing for U.S. banks and credit unions, with a focus on small and midsize banks. Jack Henry serves almost 1,000 banks and over 700 credit unions.

Executives

Stacey E. Zengel	officer: Vice President	PO BOX 807, 663 HWY 60, MONETT MO 65708
Thomas A Wimsett	director
Laura G. Kelly	director	PO BOX 807, 663 HIGHWAY 60, MONETT MO 65708
David B Foss	officer: PRESIDENT	PO BOX 807, 663 HWY 60, MONETT MO 65708
Mimi Carsley	officer: CFO and Treasurer	6333 N. STATE HWY 161, 6TH FLOOR, IRVING TX 75038
Renee Ann Swearingen	officer: Sr VP & Chief Accounting Offic	PO BOX 807, 663 HWY 60, MONETT MO 65708
Gregory R. Adelson	officer: Vice President	PO BOX 807, 663 HWY 60, MONETT MO 65708
Wilson Thomas Hampton Jr.	director	PO BOX 807, 663 HWY 60, MONETT MO 65708
Curtis A Campbell	director	6333 N. STATE HWY 161, 6TH FLOOR, IRVING TX 75038
John F Prim	officer: PRESIDENT	PO BOX 807-663 HWY 60, MONETT MO 65708
Steven W. Tomson	officer: VICE PRESIDENT	PO BOX 807, 663 HWY 60, MONETT MO 65708
Kevin D Williams	officer: CHIEF FINANCIAL OFFICER	PO BOX 807-663 HWY 60, MONETT MO 65708
Mark S Forbis	officer: IMAGE DEPARTMENT MANAGER	663 HWY 60, PO BOX 807, MONETT MO 65708
Ronald L. Moses	officer: Vice President	PO BOX 807, 663 HWY 60, MONETT MO 65708
Wesley A Brown	director	PO BOX 807, 663 HWY 60, MONETT MO 65708