Allocate SoftwareLSE:ALLA Interest Coverage is 218.55 as of May. 2014, which is 13% above its 10-year median of 192.58. The stock has 1 warning sign investors should review.
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. Allocate Software's
Operating Income
for the
six
months ended in May. 2014 was £4.81 Mil. Allocate Software's Interest Expense for the
six
months ended in May. 2014 was £-0.02 Mil.
Allocate Software's interest coverage for the quarter that ended in May. 2014 was 218.55.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Allocate Software PLC has no debt.
The historical rank and industry rank for Allocate Software's Interest Coverage or its related term are showing as below:
LSE:ALLA'
s Interest Coverage Range Over the Past 10 Years
Min: 16.63 Med: 192.58 Max: No Debt
Current: No Debt
LSE:ALLA's Interest Coverage is not ranked
in the Software industry.
Industry Median: 24.75
vs LSE:ALLA: No Debt
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 .
Allocate Software Interest Coverage Related Terms
Allocate Software Interest Coverage Historical Data
* Premium members only.
The historical data trend for Allocate Software'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.
LSE:ALLA vs SREV, ASUR: Interest Coverage Comparison
For the Software - Application subindustry, Allocate Software'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.
Allocate Software Interest Coverage vs Software Industry
For the Software industry and Technology sector, Allocate Software's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Allocate Software'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:
* 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.
Allocate Software (LSE:ALLA) has a Interest Coverage of 218.55 as of May. 2014. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Allocate Software and its competitors. This is 13% above median its historical median of 192.58. Over the past decade, Allocate Software's Interest Coverage has ranged from 16.63 to 10,000.00.
Is Allocate Software's Interest Coverage too high?
Allocate Software's current Interest Coverage of 218.55 is 13% above median its 10-year median of 192.58. Over the past 10 years, this metric has ranged from a low of 16.63 to a high of 10,000.00. The Software industry median Interest Coverage is 24.75. Allocate Software's value of 218.55 is 783% above this industry median.
How does Allocate Software's Interest Coverage compare to SREV and ASUR?
Allocate Software's Interest Coverage of 218.55 can be compared against companies in the Software industry. The industry median Interest Coverage is 24.75. Allocate Software's value of 218.55 is 783% above this benchmark. Historically, Allocate Software's own Interest Coverage has ranged from 16.63 to 10,000.00 over the past decade. While the company's 10-year median is 192.58 vs. the industry median of 24.75, Allocate Software has consistently been above the industry average. 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 24.75, based on 1,706 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. Allocate Software's current Interest Coverage of 218.55 is 783% above the industry median. 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 Allocate Software and its competitors. For the Software industry, the median Interest Coverage is 24.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allocate Software's current Interest Coverage is 218.55, which is 13% above median its own 10-year median of 192.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allocate Software stock overvalued right now?
Allocate Software (LSE:ALLA) has a current Interest Coverage of 218.55. The current Interest Coverage is 218.55, which is 13% above median its 10-year median of 192.58 and 783% above the Software industry median of 24.75. 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 Allocate Software (LSE:ALLA), the current Interest Coverage is 218.55 as of May. 2014. 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.
Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.
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