NEOM (NeoMedia Technologies) Interest Coverage: 41.50 (As of Sep. 2015)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is NeoMedia Technologies Interest Coverage?

NeoMedia Technologies NEOM -99.00% Interest Coverage is 41.50 as of Sep. 2015.

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. NeoMedia Technologies's Operating Income for the three months ended in Sep. 2015 was $0.33 Mil. NeoMedia Technologies's Interest Expense for the three months ended in Sep. 2015 was $-0.01 Mil. NeoMedia Technologies's interest coverage for the quarter that ended in Sep. 2015 was 41.50. 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 NeoMedia Technologies's Interest Coverage or its related term are showing as below:


NEOM's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 24.64
* 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.


NeoMedia Technologies  (OTCPK:NEOM) 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 .


NeoMedia Technologies Interest Coverage Related Terms


NeoMedia Technologies Interest Coverage Historical Data

* Premium members only.

The historical data trend for NeoMedia Technologies'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.

NeoMedia Technologies Interest Coverage Chart

NeoMedia Technologies Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 No Debt No Debt

NeoMedia Technologies Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 No Debt No Debt 11.05 48.00 41.50

NEOM vs LFAP, SOFT, SSPC: Interest Coverage Comparison

For the Software - Application subindustry, NeoMedia Technologies'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.


NeoMedia Technologies Interest Coverage vs Software Industry

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

* The bar in red indicates where NeoMedia Technologies's Interest Coverage falls into.



NeoMedia Technologies 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.

NeoMedia Technologies's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, NeoMedia Technologies's Interest Expense was $0.00 Mil. Its Operating Income was $0.07 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

NeoMedia Technologies had no debt (1).

NeoMedia Technologies's Interest Coverage for the quarter that ended in Sep. 2015 is calculated as

Here, for the three months ended in Sep. 2015, NeoMedia Technologies's Interest Expense was $-0.01 Mil. Its Operating Income was $0.33 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2015 )/Interest Expense (Q: Sep. 2015 )
=-1*0.332/-0.008
=41.50

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 41.50 mean?
NeoMedia Technologies (NEOM) has a Interest Coverage of 41.50 as of Sep. 2015. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NeoMedia Technologies and its competitors.
Is NeoMedia Technologies' Interest Coverage too high?
NeoMedia Technologies' current Interest Coverage is 41.50. The Software industry median Interest Coverage is 24.64. NeoMedia Technologies' value of 41.50 is 68.4% above this industry median.
How does NeoMedia Technologies' Interest Coverage compare to LFAP and SOFT?
NeoMedia Technologies' Interest Coverage of 41.50 can be compared against companies in the Software industry. The industry median Interest Coverage is 24.64. NeoMedia Technologies' value of 41.50 is 68.4% above this benchmark. 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 24.64, based on 1,716 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. NeoMedia Technologies's current Interest Coverage of 41.50 is 68.4% 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 NeoMedia Technologies and its competitors. For the Software industry, the median Interest Coverage is 24.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NeoMedia Technologies's current Interest Coverage is 41.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NeoMedia Technologies stock overvalued right now?
NeoMedia Technologies (NEOM) has a current Interest Coverage of 41.50. The current Interest Coverage is 41.50 and 68.4% above the Software industry median of 24.64. 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 NeoMedia Technologies (NEOM), the current Interest Coverage is 41.50 as of Sep. 2015. 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.

NeoMedia Technologies Business Description

Address 1515 Walnut Street, Suite 100, Boulder, CO, USA, 80302
NeoMedia Technologies Inc is a U.S based company engaged in the development of two dimensional (2D) mobile barcode technology and services solutions that enable the mobile barcode ecosystem around the world. With the company's technology, mobile devices with cameras become barcode scanners, enabling a range of practical applications, including mobile marketing and mobile commerce.