PWSC (PowerSchool Holdings) Interest Coverage : 0 (At Loss) (As of Jun. 2024)

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What is PowerSchool Holdings 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. PowerSchool Holdings's Operating Income for the three months ended in Jun. 2024 was $-7.8 Mil. PowerSchool Holdings's Interest Expense for the three months ended in Jun. 2024 was $-23.2 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 PowerSchool Holdings's Interest Coverage or its related term are showing as below:

PWSC' s Interest Coverage Range Over the Past 10 Years
Min: 0.19 Med: 0.29 Max: 0.43
Current: 0.19

PWSC's Interest Coverage is not ranked
in the Software industry.
Industry Median: 27.82 vs PWSC: 0.19

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

PowerSchool Holdings Interest Coverage Historical Data

The historical data trend for PowerSchool Holdings'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.

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PowerSchool Holdings Interest Coverage Chart

PowerSchool Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.36

0.22

0.21

0.43

PowerSchool Holdings Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Interest Coverage	Get a 7-Day Free Trial														0.63	0.86	0.26	0.17	-

Competitive Comparison of PowerSchool Holdings's Interest Coverage

For the Software - Application subindustry, PowerSchool Holdings'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.

PowerSchool Holdings's Interest Coverage Distribution in the Software Industry

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

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

PowerSchool Holdings 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.

PowerSchool Holdings's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, PowerSchool Holdings's Interest Expense was $-66.7 Mil. Its Operating Income was $28.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $824.7 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	28.6	/	-66.722
	=	0.43

PowerSchool Holdings's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, PowerSchool Holdings's Interest Expense was $-23.2 Mil. Its Operating Income was $-7.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $822.5 Mil.

PowerSchool Holdings did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

PowerSchool Holdings (NYSE:PWSC) 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 .

PowerSchool Holdings Interest Coverage Related Terms

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

PowerSchool Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » PowerSchool Holdings Inc (NYSE:PWSC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

150 Parkshore Drive, Folsom, CA, USA, 95630

Website

https://www.powerschool.com

PowerSchool Holdings Inc is a provider of cloud-based software to the K-12 education market. Its cloud-based technology platform helps schools and districts efficiently manage state reporting and related compliance, special education, finance, HR, talent, registration, attendance, funding, learning, instruction, grading, college and career readiness, assessments, and analytics in one unified platform. The Company's integrated technology approach streamlines operations aggregates disparate data sets and develops insights using predictive modeling and machine learning. It earns revenue from subscription offerings, perpetual software licenses, maintenance and support services, and professional services.

Executives

Shivani Stumpf	officer: CPO	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DR., FOLSOM CA 95630
Eric Ryan Shander	officer: Chief Financial Officer	100 EAST DAVIE STREET, RALEIGH NC 27601
Hardeep Gulati	director, officer: Chief Executive Officer	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Devendra Singh	officer: Chief Technology Officer	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Anthony Kender	officer: Chief Revenue Officer	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DR, FOLSOM CA 95630
Fred Studer	officer: Chief Marketing Officer	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DR, FOLSOM CA 95630
Zach Levitt	director	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DR., FOLSOM CA 95630
Marcy Daniel	officer: Chief Product Officer	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Angelina Hendraka	officer: Chief Accounting Officer	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Michael C. Bisignano	officer: Chief Legal Officer	520 MADISON AVENUE, NEW YORK NY 10022
Judy Cotte	director	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Anthony Joseph Miller	officer: Chief Marketing Officer	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Maulik Datanwala	officer: Chief Operating Officer	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Onex Partners Iv Gp Ltd	director, 10 percent owner	C/O WALKERS CORPORATE LIMITED, CAYMAN CORPORATE CENTRE, 27 HOSPITAL RD., GEORGE TOWN, GRAND CAYMAN E9 KY1-9008
Craig Greenseid	officer: Chief Revenue Officer	C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630