TeleCommunication Systems (TeleCommunication Systems) Interest Coverage : 3.24 (As of Sep. 2015)

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What is TeleCommunication 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. TeleCommunication Systems's Operating Income for the three months ended in Sep. 2015 was $6.7 Mil. TeleCommunication Systems's Interest Expense for the three months ended in Sep. 2015 was $-2.1 Mil. TeleCommunication Systems's interest coverage for the quarter that ended in Sep. 2015 was 3.24. The higher the ratio, the stronger the company's financial strength is.

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

TSYS's Interest Coverage is not ranked ^*
in the Software industry.
Industry Median: 28.885
* 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.

TeleCommunication Systems Interest Coverage Historical Data

The historical data trend for TeleCommunication 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.

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TeleCommunication Systems Interest Coverage Chart

TeleCommunication Systems Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Interest Coverage

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3.51

2.86

1.48

TeleCommunication Systems Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Interest Coverage	Get a 7-Day Free Trial															1.76	1.98	1.19	1.50	3.24

Competitive Comparison of TeleCommunication Systems's Interest Coverage

For the Software - Application subindustry, TeleCommunication 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.

TeleCommunication Systems's Interest Coverage Distribution in the Software Industry

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

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

TeleCommunication 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.

TeleCommunication Systems's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, TeleCommunication Systems's Interest Expense was $-8.3 Mil. Its Operating Income was $12.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $119.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2014 )	/	Interest Expense (A: Dec. 2014 )
	=	-1	*	12.2	/	-8.264
	=	1.48

TeleCommunication Systems's Interest Coverage for the quarter that ended in Sep. 2015 is calculated as

Here, for the three months ended in Sep. 2015, TeleCommunication Systems's Interest Expense was $-2.1 Mil. Its Operating Income was $6.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $135.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2015 )	/	Interest Expense (Q: Sep. 2015 )
	=	-1	*	6.66	/	-2.055
	=	3.24

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

TeleCommunication Systems (NAS:TSYS) 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 .

TeleCommunication Systems Interest Coverage Related Terms

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TeleCommunication Systems (TeleCommunication Systems) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » TeleCommunication Systems Inc (NAS:TSYS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.telecomsys.com

TeleCommunication Systems Inc is a Maryland corporation, founded in 1987. The Company develops and delivers wireless communication technology, the development of which has led to ownership of 349 patents and nearly 400 patent applications. It delivers cellular network computing services that include public safety solutions for 9-1-1 call delivery, precision location platforms, and applications that include navigation, locator applications and text messaging, as well as secure wireless communications systems and professional services, including cybersecurity training and technology for defense and other government customers. Customers use its "mobile cloud" software functionality through connections to and from network operations centers, paying the Company monthly fees based on the number of subscribers, cell sites, call center circuits, or other metrics. The Company does business with the U.S. federal government as a prime contractor under major technology contract vehicles, as well as state, local and foreign government entities. The Company's segments include Government, and Commercial. Through the Government Segment, it provides professional services including field support of deployable wireless systems and cybersecurity training to the U.S. Department of Defense and other government and foreign customers. It owns and operates secure satellite teleport facilities, resell access to satellite airtime (known as space segment), and design, furnish, install and operate wireless communication systems and components, including its SwiftLink deployable communication systems which integrate high speed, satellite and internet protocol technology with secure, federal government-approved cryptologic devices. Through the Commercial segment, it enables 9-1-1 call routing via cellular, Voice over Internet Protocol (VoIP) and next generation technology. Other hosted and managed services include cellular carrier infrastructure for text messaging and location-based platforms and applications, including turn-by-turn navigation. Commercial segment customers include wireless carrier network operators, Voice over Internet Protocol service providers, wireless device manufacturers, automotive industry suppliers, and state and local governments. SwiftLink, Xypoint, AtlasBook, Gokivo, Connections that Matter, Designed for Mobility, Secure the Edge, Art of Exploitation, and Enabling Convergent Technologies are registered trademarks or service marks of the Company. The Company sells products and services through direct sales force and through indirect channels. The Company is subject to procurement and other related laws and regulations which carry significant penalties for non-compliance.

Executives

Bell Don Carlos Iii	director	3713 SOUTHWESTERN BLVD, DALLAS TX 75225
Michael P Madon	director	7732 BRIDLE PATH LN, MCLEAN VA 22102
Riverview Group Llc	10 percent owner	399 PARK AVENUE, NEW YORK NY 10022
Israel A Englander	other: May be deemed as group member.	C/O MILLENNIUM MANAGEMENT LLC, 399 PARK AVENUE, NEW YORK NY 10022
Millennium Management Llc	other: May be deemed as group member.	399 PARK AVENUE, NEW YORK NY 10022
Integrated Holding Group, L.p.	other: May be deemed as group member.	C/O MILLENNIUM MANAGEMENT LLC, 666 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10103-0899