MoneyGram International (MoneyGram International) Interest Coverage : 1.31 (As of Mar. 2023)

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What is MoneyGram International 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. MoneyGram International's Operating Income for the three months ended in Mar. 2023 was $20 Mil. MoneyGram International's Interest Expense for the three months ended in Mar. 2023 was $-15 Mil. MoneyGram International's interest coverage for the quarter that ended in Mar. 2023 was 1.31. The higher the ratio, the stronger the company's financial strength is.

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

MGI' s Interest Coverage Range Over the Past 10 Years
Min: 0.32 Med: 1.09 Max: 3.76
Current: 1.78

MGI's Interest Coverage is not ranked
in the Credit Services industry.
Industry Median: 69.76 vs MGI: 1.78

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

MoneyGram International Interest Coverage Historical Data

The historical data trend for MoneyGram International'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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MoneyGram International Interest Coverage Chart

MoneyGram International Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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0.35

0.68

1.11

1.06

1.89

MoneyGram International Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Interest Coverage	Get a 7-Day Free Trial															1.64	1.41	1.89	2.47	1.31

Competitive Comparison of MoneyGram International's Interest Coverage

For the Credit Services subindustry, MoneyGram International'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.

MoneyGram International's Interest Coverage Distribution in the Credit Services Industry

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

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

MoneyGram International 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.

MoneyGram International's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, MoneyGram International's Interest Expense was $-49 Mil. Its Operating Income was $93 Mil. And its Long-Term Debt & Capital Lease Obligation was $831 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	93.2	/	-49.4
	=	1.89

MoneyGram International's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the three months ended in Mar. 2023, MoneyGram International's Interest Expense was $-15 Mil. Its Operating Income was $20 Mil. And its Long-Term Debt & Capital Lease Obligation was $829 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	19.7	/	-15
	=	1.31

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

MoneyGram International (NAS:MGI) 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 .

MoneyGram International Interest Coverage Related Terms

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

MoneyGram International (MoneyGram International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » MoneyGram International Inc (NAS:MGI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

2828 North Harwood Street, 15th Floor, Dallas, TX, USA, 75201

Website

https://www.moneygram.com

MoneyGram International Inc offers products and services under its two reporting segments; Global Funds Transfer, which is the core revenue generator, and Financial Paper Products. The Global Funds Transfer segment provides global money transfer services and bill payment services to consumers. It primarily offers services through third-party agents, including retail chains, independent retailers, post offices and other financial institutions. The company also offer Digital solutions such as moneygram.com, mobile solutions, account deposit and kiosk-based services. The Financial Paper Products segment provides official check outsourcing services and money orders through financial institutions and agent locations. The group operates in the United States and other countries.

Executives

Robert L Villasenor	officer: GC, Corp Sec and CAO	2828 N. HARWOOD STREET, 15TH FLOOR, DALLAS TX 75201
Chris H. Russell	officer: Chief Accounting Officer	15710 JOHN F. KENNEDY BLVD., SUITE 300, HOUSOTN TX 77032
Julie Silcock	director
Adrianna E. Greenwald	officer: Chief Readiness Officer	2828 N. HARWOOD ST., 15TH FLOOR, DALLAS TX 75201
Alka Gupta	director	2828 N. HARWOOD STREET, 15TH FLOOR, DALLAS TX 75201
Francisco Lorca	director	2828 N. HARWOOD STREET, 15TH FLOOR, DALLAS TX 75201
Brian Johnson	officer: Chief Financial Officer	2828 NORTH HARWOOD ST, 15TH FLOOR, DALLAS TX 75201
Andres Villareal	officer: SVP Chief Compliance Officer	2828 N. HARWOOD STREET, 15TH FLOOR, DALLAS TX 75201
Lawrence Angelilli	officer: EVP Chief Financial Officer	2828 N. HARWOOD STREET, 15TH FLOOR, DALLAS TX 75201
Peggy Vaughan	director	2828 NORTH HARVARD STREET, 15TH FLOOR, DALLAS TX 75201
Grant A. Lines	officer: EVP Business Development	2828 NORTH HARWOOD STREET, 15TH FLOOR, DALLAS TX 75201
W Bruce Turner	director	3773 HOWARD HUGHES PKWY, SUITE 490 SOUTH, LAS VAGAS NV 89109
Michael P Rafferty	director	12700 PARK CENTRAL DRIVE SUITE 1700, DALLAS TX 75251
W. Alexander Holmes	director, officer: CEO	2828 NORTH HARWOOD STREET, 15TH FLOOR, DALLAS TX 75201
Antonio O Garza	director	500 W. ILLINOIS, SUITE 100, MIDLAND TX 79701