GURUFOCUS.COM » STOCK LIST » USA » NYSE » Shopify Inc (NYSE:SHOP) » Definitions » Effective Interest Rate on Debt %
Switch to:

Shopify (NYSE:SHOP) Effective Interest Rate on Debt %

: 0.09% (As of Sep. 2022)
View and export this data going back to 2015. Start your Free Trial

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Shopify's annualized positive value of Interest Expense for the quarter that ended in Sep. 2022 was $1 Mil. Shopify's average total debt for the quarter that ended in Sep. 2022 was $1,246 Mil. Therefore, Shopify's annualized Effective Interest Rate on Debt % for the quarter that ended in Sep. 2022 was 0.09%.


Shopify Effective Interest Rate on Debt % Historical Data

The historical data trend for Shopify's Effective Interest Rate on Debt % 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.

* Premium members only.

Shopify Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Effective Interest Rate on Debt %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - 1.61 0.11

Shopify Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Effective Interest Rate on Debt % 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 Premium Member Only Premium Member Only Premium Member Only 0.11 0.10 0.10 0.09 0.09

Competitive Comparison

For the Software - Application subindustry, Shopify's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.

   

Shopify Effective Interest Rate on Debt % Distribution

For the Software industry and Technology sector, Shopify's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Shopify's Effective Interest Rate on Debt % falls in comparison to its industry or sector. The grey bar indicates the Effective Interest Rate on Debt %'s extreme value range as defined by GuruFocus.



Shopify Effective Interest Rate on Debt % Calculation

Shopify's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2021 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2020 )+Total Debt  (A: Dec. 2021 ))/ count )
=-1  *  -1.15/( (912.895+1173.487)/ 2 )
=-1  *  -1.15/1043.191
=0.11 %

where

Total Debt  (A: Dec. 2020 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=902.844 + 10.051
=912.895

Total Debt  (A: Dec. 2021 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1157.739 + 15.748
=1173.487

Shopify's annualized Effective Interest Rate on Debt % for the quarter that ended in Sep. 2022 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jun. 2022 )+Total Debt  (Q: Sep. 2022 ))/ count )
=-1  *  -1.16/( (1192.222+1298.879)/ 2 )
=-1  *  -1.16/1245.5505
=0.09 %

where

Total Debt  (Q: Jun. 2022 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1166.554 + 25.668
=1192.222

Total Debt  (Q: Sep. 2022 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1281.855 + 17.024
=1298.879

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Sep. 2022) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.


Shopify  (NYSE:SHOP) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Shopify Effective Interest Rate on Debt % Related Terms

Thank you for viewing the detailed overview of Shopify's Effective Interest Rate on Debt % provided by GuruFocus.com. Please click on the following links to see related term pages.


Shopify (NYSE:SHOP) Business Description

Shopify logo
Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Shopify Inc (NYSE:SHOP) » Definitions » Effective Interest Rate on Debt %
Traded in Other Exchanges
Address
151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8
Shopify offers an e-commerce platform primarily to small and midsize businesses. The firm has two segments: subscription solutions (43% of fiscal 2018 revenue) and merchant solutions (57% of fiscal 2018 revenue). The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. Merchant solutions are add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

Shopify (NYSE:SHOP) Headlines

Other Sources

2 Top Stocks to Buy In a 2023 Bear Market

By Yahoo Finance 2023-01-30

Why Shopify Stock Was Slumping Today

By Yahoo Finance 2023-01-30

Why Shopify Stock Was Up This Week

By Yahoo Finance 2023-01-27

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
premium membership