PSAV (PSAV) Interest Coverage: 2.01 (As of Mar. 2016)


What is PSAV Interest Coverage?

PSAV PSAV Interest Coverage is 2.01 as of Mar. 2016.

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. PSAV's Operating Income for the three months ended in Mar. 2016 was $27.73 Mil. PSAV's Interest Expense for the three months ended in Mar. 2016 was $-13.76 Mil. PSAV's interest coverage for the quarter that ended in Mar. 2016 was 2.01. The higher the ratio, the stronger the company's financial strength is.

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


PSAV's Interest Coverage is not ranked *
in the Media - Diversified industry.
Industry Median: 11.88
* 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.

PSAV  (NYSE:PSAV) 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 .

PSAV Interest Coverage Related Terms

PSAV Interest Coverage Historical Data

* Premium members only.

The historical data trend for PSAV'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.

PSAV Interest Coverage Chart

PSAV Annual Data
Trend Dec12 Dec13 Dec14 Dec15
Interest Coverage
0.92 1.33 N/A 1.04

PSAV Quarterly Data
Dec12 Dec13 Mar15 Jun15 Sep15 Dec15 Mar16
Interest Coverage Get a 7-Day Free Trial 2.31 2.04 0.00 1.07 2.01

PSAV vs CRCO, ASKH, PTSX: Interest Coverage Comparison

For the Broadcasting subindustry, PSAV'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.

PSAV Interest Coverage vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, PSAV's Interest Coverage distribution charts can be found below:

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


PSAV 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.

PSAV's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, PSAV's Interest Expense was $-51.02 Mil. Its Operating Income was $52.82 Mil. And its Long-Term Debt & Capital Lease Obligation was $856.27 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2015 )/Interest Expense (A: Dec. 2015 )
=-1*52.815/-51.024
=1.04

PSAV's Interest Coverage for the quarter that ended in Mar. 2016 is calculated as

Here, for the three months ended in Mar. 2016, PSAV's Interest Expense was $-13.76 Mil. Its Operating Income was $27.73 Mil. And its Long-Term Debt & Capital Lease Obligation was $855.57 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2016 )/Interest Expense (Q: Mar. 2016 )
=-1*27.726/-13.764
=2.01

* 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 2.01 mean?
PSAV (PSAV) has a Interest Coverage of 2.01 as of Mar. 2016. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PSAV and its competitors.
Is PSAV's Interest Coverage too high?
PSAV's current Interest Coverage is 2.01. The Media - Diversified industry median Interest Coverage is 11.88. PSAV's value of 2.01 is 83.1% below this industry median.
How does PSAV's Interest Coverage compare to CRCO and ASKH?
PSAV's Interest Coverage of 2.01 can be compared against companies in the Media - Diversified industry. The industry median Interest Coverage is 11.88. PSAV's value of 2.01 is 83.1% below 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 Media - Diversified company?
The median Interest Coverage among Media - Diversified companies is 11.88, based on 609 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. PSAV's current Interest Coverage of 2.01 is 83.1% below 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 PSAV and its competitors. For the Media - Diversified industry, the median Interest Coverage is 11.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PSAV's current Interest Coverage is 2.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PSAV stock overvalued right now?
PSAV (PSAV) has a current Interest Coverage of 2.01. The current Interest Coverage is 2.01 and 83.1% below the Media - Diversified industry median of 11.88. 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 PSAV (PSAV), the current Interest Coverage is 2.01 as of Mar. 2016. 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.

PSAV Business Description

PSAV Inc was incorporated in Delaware on August 11, 2015. The Company along with its subsidiaries provides event technology services. The Company provides services including audiovisual services, equipment rental, staging and meeting services, communication systems, and related technical support to its customers in various venues, including hotels and convention centers. The Company's Video technology includes front and rear projection from large format HD high lumen projection to boardroom-style projectors, playback systems, image magnification, digital capture, cameras and display systems, including LED displays and video walls; Rigging Solutions include design and installation of permanently installed rig points in meeting venues, day-to-day deployment of rigging systems to safely transform meeting and event spaces for larger and more sophisticated set and lighting designs and certified trainers and inspectors; Wi-Fi Solutions include managing venues' entire network to provide customers secure and reliable wired and wireless solutions; Staging includes collections of custom screens and the ability to provide concert sound, broadcast quality projection, seasoned stage producers, and CAD drawing; Creative Services including Thematic creation, PowerPoint display, video creation, & stage sets; Mobile Device Applications tailored to the specific events that provide the schedule of events, maps, sponsors and detailed information on the host customer; Video Mapping / Simultaneous Translation; Virtual Meetings and Events; Event Consultation and Support, Power Distribution Solutions including streamlining of special event power distribution for event and production power across events, meeting rooms and trade shows; Audio including microphone and sound solutions with digital mixers, wireless microphones, networked audio and proprietary software to control live sound systems; and Lighting including speaker and stage lighting, intelligent lighting and decorative and theatrical lighting through gel lights and LED lights. The Company operates in two segments including Domestic and International. The Domestic segment provides services to customers throughout the United States and Puerto Rico; and is provider of event technology services at approximately over 1,000 hotel properties and other event venues. The International segment provides services to its customers in Canada, Mexico, the Caribbean, Europe and the Middle East, in addition to providing non-venue based services in Asia; and provides event technology services at approximately over 300 international hotel properties and other event venues. The Company's customers include corporations, event organizers, trade associations and meeting planners. The Company faces competition from Freeman Company.