GURUFOCUS.COM » STOCK LIST » Technology » Software » Sourcefire, Inc. (FRA:SEV) » Definitions » Interest Coverage

Sourcefire, (FRA:SEV) Interest Coverage : No Debt (1) (As of Jun. 2013)


View and export this data going back to . Start your Free Trial

What is Sourcefire, 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. Sourcefire,'s Operating Income for the three months ended in Jun. 2013 was €2.1 Mil. Sourcefire,'s Interest Expense for the three months ended in Jun. 2013 was €0.0 Mil. Sourcefire, has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) 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.

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

FRA:SEV' s Interest Coverage Range Over the Past 10 Years
Min: 0   Med: 0   Max: No Debt
Current: No Debt


FRA:SEV's Interest Coverage is not ranked
in the Software industry.
Industry Median: 29.785 vs FRA:SEV: No Debt

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


Sourcefire, Interest Coverage Historical Data

The historical data trend for Sourcefire,'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.

Sourcefire, Interest Coverage Chart

Sourcefire, Annual Data
Trend Dec02 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 516.55 815.92 15.28 1,783.75

Sourcefire, Quarterly Data
Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13
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 1,283.00 No Debt No Debt No Debt No Debt

Competitive Comparison of Sourcefire,'s Interest Coverage

For the Software - Application subindustry, Sourcefire,'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.


Sourcefire,'s Interest Coverage Distribution in the Software Industry

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

* The bar in red indicates where Sourcefire,'s Interest Coverage falls into.



Sourcefire, 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.

Sourcefire,'s Interest Coverage for the fiscal year that ended in Dec. 2012 is calculated as

Here, for the fiscal year that ended in Dec. 2012, Sourcefire,'s Interest Expense was €-0.0 Mil. Its Operating Income was €7.1 Mil. And its Long-Term Debt & Capital Lease Obligation was €0.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2012 )/Interest Expense (A: Dec. 2012 )
=-1*7.135/-0.004
=1,783.75

Sourcefire,'s Interest Coverage for the quarter that ended in Jun. 2013 is calculated as

Here, for the three months ended in Jun. 2013, Sourcefire,'s Interest Expense was €0.0 Mil. Its Operating Income was €2.1 Mil. And its Long-Term Debt & Capital Lease Obligation was €0.0 Mil.

Sourcefire, had no debt (1).

* 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.


Sourcefire,  (FRA:SEV) 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 .


Sourcefire, Interest Coverage Related Terms

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


Sourcefire, (FRA:SEV) Business Description

Traded in Other Exchanges
N/A
Address
Sourcefire, Inc. was incorporated in Delaware in 2001. The Company is a provider of Enterprise Threat Management, or ETM, intelligent security infrastructure solutions for information technology, or IT, environments of commercial enterprises such as healthcare, financial services, manufacturing, energy, education, retail and telecommunications and federal and state government organizations. The Company's 3D System is comprised of hardware and software product offerings such as Sourcefire Defense Center and Sourcefire 3D Sensors. The Sourcefire 3D System Defense Center unifies critical network security functions including event monitoring, correlation, and prioritization with network and user intelligence for forensic analysis, trends analysis, reporting and alerting. Sourcefire 3D Sensors have processing speeds ranging from 5 megabytes per second, or Mbps, to 10 gigabytes per second, or Gbps, Sourcefire 3D Sensors are highly scalable, fault-tolerant appliances responsible for processing Sourcefire IPS, RNA, RUA and NetFlow Analysis software applications. The Company's 3D Sensors are available with a variety of copper and fiber interfaces to meet the connectivity needs of virtually any organization. The company also provides a variety of professional services solutions to provide customers with best practices for planning, installing, configuring, and managing all components of the Sourcefire 3D System. The Company provides a variety of training programs to help security professionals using Sourcefire commercial or open source security solutions out of their investment. The competitors include Cisco Systems, Inc., IBM Corporation, Juniper Networks, Inc., 3Com Corporation, Check Point Software Technologies, Ltd., McAfee, Inc., Cisco Systems, Inc., 3Com Corporation and Juniper Networks, Inc. The Company sells their solutions to a diverse customer base that includes Global 2000 companies, global enterprises, U.S. and international government agencies and small and mid-size businesses. For the years ended December 31, 2012, 2011 and 2010, the Company generated approximately 67%, 75%, and 75% of the revenue from customers in the United States and 33%, 25%, and 25% from customers outside the United States, respectively. The Company increased their total revenue from $165.6 million in 2011 to $223.1 million in 2012, representing an annual growth rate of 35%.To protect intellectual property, both domestically and abroad, the Company rely on patent, trademark, copyright and trade secret laws The Company holds 23 issued patents and have dozens of patent applications pending for examination in the U.S. and foreign jurisdictions.