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. Grow Capital's
Operating Income
for the
three
months ended in Mar. 2021 was $-0.99 Mil. Grow Capital's Interest Expense for the
three
months ended in Mar. 2021 was $-0.07 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 Grow Capital's Interest Coverage or its related term are showing as below:
GRWC's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 24.78 * Ranked among companies with meaningful Interest Coverage only.
Grow Capital (OTCPK:GRWC) 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 .
Grow Capital Interest Coverage Related Terms
Grow Capital Interest Coverage Historical Data
* Premium members only.
The historical data trend for Grow Capital'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.
GRWC vs MRIN, PALT, ANY: Interest Coverage Comparison
For the Software - Application subindustry, Grow Capital'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.
Grow Capital Interest Coverage vs Software Industry
For the Software industry and Technology sector, Grow Capital's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Grow Capital's Interest Coverage falls into.
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:
Grow Capital 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.
What does a Interest Coverage of 0 (At Loss) mean?
Grow Capital (GRWC) has a Interest Coverage of 0 (At Loss) as of Mar. 2021. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Grow Capital and its competitors.
Is Grow Capital's Interest Coverage too high?
Grow Capital's current Interest Coverage is 0 (At Loss). Overall, Grow Capital has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Grow Capital's Interest Coverage compare to MRIN and PALT?
Grow Capital's Interest Coverage of 0 (At Loss) can be compared against companies in the Software industry. The industry median Interest Coverage is 24.78. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.78, based on 1,705 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Grow Capital and its competitors. For the Software industry, the median Interest Coverage is 24.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grow Capital's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grow Capital stock overvalued right now?
Grow Capital (GRWC) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). Grow Capital's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Grow Capital (GRWC), the current Interest Coverage is 0 (At Loss) as of Mar. 2021. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Grow Capital Inc is a technology solutions company focused on software, technology, and financial services business. Its operating segments includes Bombshell Technologies and corporate, and PERA. The Bombshell Technologies and corporate segment represents its proprietary software that delivers customized back-office compliance, sophisticated multi-pay commission processing, and a new client application submission system, along with digital engagement marketing services centric to financial services. The PERA segment represents its electronic appointment scheduling operations, providing leads for insurance agents to connect with retirement professionals and public employees to trusted insurance advisors. The company generates maximum revenue from the PERA segment.
12GF Score
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