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APLD (Applied Digital) Interest Coverage : 0 (At Loss) (As of Feb. 2025)


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What is Applied Digital 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. Applied Digital's Operating Income for the three months ended in Feb. 2025 was $-18.9 Mil. Applied Digital's Interest Expense for the three months ended in Feb. 2025 was $-8.9 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


APLD's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 26.33
* 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.


Applied Digital Interest Coverage Historical Data

The historical data trend for Applied Digital'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.

Applied Digital Interest Coverage Chart

Applied Digital Annual Data
Trend May04 May05 May06 May07 May08 May20 May21 May22 May23 May24
Interest Coverage
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Applied Digital Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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Competitive Comparison of Applied Digital's Interest Coverage

For the Information Technology Services subindustry, Applied Digital'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.


Applied Digital's Interest Coverage Distribution in the Software Industry

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

* The bar in red indicates where Applied Digital's Interest Coverage falls into.


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Applied Digital 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.

Applied Digital's Interest Coverage for the fiscal year that ended in May. 2024 is calculated as

Here, for the fiscal year that ended in May. 2024, Applied Digital's Interest Expense was $-26.8 Mil. Its Operating Income was $-81.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $252.5 Mil.

Applied Digital did not have earnings to cover the interest expense.

Applied Digital's Interest Coverage for the quarter that ended in Feb. 2025 is calculated as

Here, for the three months ended in Feb. 2025, Applied Digital's Interest Expense was $-8.9 Mil. Its Operating Income was $-18.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $815.9 Mil.

Applied Digital did not have earnings to cover the interest expense.

* 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.


Applied Digital  (NAS:APLD) 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 .


Applied Digital Interest Coverage Related Terms

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


Applied Digital Business Description

Traded in Other Exchanges
Address
3811 Turtle Creek Boulevard, Suite 2100, Dallas, TX, USA, 75219
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments; Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business which operates data centers to provide energized space to crypto mining customers.
Executives
Richard N Nottenburg director 1303 EAST ALGONQUIN ROAD, SCHAUMBURG IL 60196
Wes Cummins director, 10 percent owner, officer: CEO & Chairman 4505 LORRAINE AVE, DALLAS TX 75205
Douglas S Miller director C/O TELENAV, INC., 4655 GREAT AMERICA PK, SUITE 300, SANTA CLARA CA 95054
Virginia Moore director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN,INC., DALLAS TX 75219
Michael Maniscalco officer: Chief Technology Officer 3811 TURTLE CREEK BOULEVARD, SUITE 2100, DALLAS TX 75219
David Rench officer: Chief Financial Officer 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Regina Ingel officer: EVP - Operations 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Chuck Hastings director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Kelli Mcdonald director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Jason Zhang director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Richard S Rosenfeld officer: CFO 105 STONEBRIDGE ROAD, MONTCLAIR NJ 07042
James A Schwartz director 28 COTTRELL STREET, MYSTIC CT 06355
Riley Investment Management Llc 10 percent owner 11100 SANTA MONICA BLVD., SUITE 810, LOS ANGELES CA 90025
Riley Investment Partners Master Fund, L.p. 10 percent owner 11100 SANTA MONICA BOULEVARD, SUITE 810, LOS ANGELES CA 90025
Samuel A Kovnat director, officer: Chief Executive Officer