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FA (First Advantage) Interest Coverage : 0.16 (As of Mar. 2025)


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What is First Advantage 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. First Advantage's Operating Income for the three months ended in Mar. 2025 was $8 Mil. First Advantage's Interest Expense for the three months ended in Mar. 2025 was $-47 Mil. First Advantage's interest coverage for the quarter that ended in Mar. 2025 was 0.16. The higher the ratio, the stronger the company's financial strength is.

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


FA's Interest Coverage is not ranked *
in the Business Services industry.
Industry Median: 13.32
* 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.


First Advantage Interest Coverage Historical Data

The historical data trend for First Advantage'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.

First Advantage Interest Coverage Chart

First Advantage Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A 2.56 10.25 2.47 -

First Advantage Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Interest Coverage Get a 7-Day Free Trial 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 - 1.35 0.53 - 0.16

Competitive Comparison of First Advantage's Interest Coverage

For the Specialty Business Services subindustry, First Advantage'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.


First Advantage's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, First Advantage's Interest Coverage distribution charts can be found below:

* The bar in red indicates where First Advantage's Interest Coverage falls into.


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First Advantage 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.

First Advantage's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, First Advantage's Interest Expense was $-52 Mil. Its Operating Income was $-62 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,130 Mil.

First Advantage did not have earnings to cover the interest expense.

First Advantage's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, First Advantage's Interest Expense was $-47 Mil. Its Operating Income was $8 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,125 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*7.617/-46.58
=0.16

* 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.


First Advantage  (NAS:FA) 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 .


First Advantage Interest Coverage Related Terms

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


First Advantage Business Description

Traded in Other Exchanges
Address
1 Concourse Parkway NE, Suite 200, Atlanta, GA, USA, 30328
First Advantage Corp is a provider of employment background screening and verification solutions. Its reportable segments are First Advantage Americas, First Advantage International, and Sterling. Maximum revenue is generated from the First Advantage Americas segment, which performs various background checks and compliance services across all phases of the workforce lifecycle, from pre-onboarding services to post-onboarding and ongoing monitoring services, covering employees, contractors, contingent workers, tenants, and drivers. The company delivers solutions across multiple industry verticals in the United States, Canada, and Latin America. Geographically, it derives key revenue from the United States.
Executives
Bret T Jardine officer: See Remarks 100 CARILLON PARKWAY, ST. PETERSBURG FL 33716
Steven Irwin Marks officer: Chief Accounting Officer C/O FIRST ADVANTAGE CORPORATION, 1 CONCOURSE PARKWAY NE, SUITE 200, ATLANTA GA 30328
Joseph K. Jaeger officer: President, Americas C/O FIRST ADVANTAGE CORPORATION, 1 CONCOURSE PARKWAY NE, SUITE 200, ATLANTA GA 30328
James Lindsey Clark director 1819 DANFORTH DRIVE, MARIETTA GA 30062
Silver Lake Group, L.l.c. director, 10 percent owner 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Joelle M Smith officer: See Remarks C/O FIRST ADVANTAGE CORPORATION, 1 CONCOURSE PARKWAY NE, SUITE 200, ATLANTA GA 30328
Bridgett R Price director C/O FIRST ADVANTAGE CORPORATION, 1 CONCOURSE PARKWAY NE, SUITE 200, ATLANTA GA 30328
Slta V (gp), L.l.c. director, 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Scott Staples director, officer: Chief Executive Officer C/O FIRST ADVANTAGE CORPORATION, 1 CONCOURSE PARKWAY NE, SUITE 200, ATLANTA GA 30328
David L Gamsey officer: EVP & Chief Financial Officer
Slp Fastball Aggregator, L.p. director, 10 percent owner C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Slp V Aggregator Gp, L.l.c. director, 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Judith Sim director C/O FORTINET, INC., 899 KIFER ROAD, SUNNYVALE CA 94086
Bianca Stoica director C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Joseph Osnoss director C/O SILVER LAKE EUROPE LLP, BROADBENT HOUSE, 65 GROSVENOR STREET, LONDON X0 W1K 3JH