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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. Sonic Foundry's
Operating Income
for the
three
months ended in Sep. 2023 was $-3.10 Mil. Sonic Foundry's Interest Expense for the
three
months ended in Sep. 2023 was $-0.64 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 Sonic Foundry's Interest Coverage or its related term are showing as below:
SOFO's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 26.12 * Ranked among companies with meaningful Interest Coverage only.
Sonic Foundry (OTCPK:SOFO) 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 .
Sonic Foundry Interest Coverage Related Terms
Sonic Foundry Interest Coverage Historical Data
* Premium members only.
The historical data trend for Sonic Foundry'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.
SOFO vs EBIXQ, WOWI, DUUO: Interest Coverage Comparison
For the Software - Application subindustry, Sonic Foundry'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.
Sonic Foundry Interest Coverage vs Software Industry
For the Software industry and Technology sector, Sonic Foundry's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sonic Foundry'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:
Sonic Foundry 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?
Sonic Foundry (SOFO) has a Interest Coverage of 0 (At Loss) as of Sep. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sonic Foundry and its competitors.
Is Sonic Foundry's Interest Coverage too high?
Sonic Foundry's current Interest Coverage is 0 (At Loss). Overall, Sonic Foundry has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sonic Foundry's Interest Coverage compare to EBIXQ and WOWI?
Sonic Foundry's Interest Coverage of 0 (At Loss) can be compared against companies in the Software industry. The industry median Interest Coverage is 26.12. 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 26.12, based on 1,701 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 Sonic Foundry and its competitors. For the Software industry, the median Interest Coverage is 26.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Foundry'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 Sonic Foundry stock overvalued right now?
Sonic Foundry (SOFO) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). Sonic Foundry'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 Sonic Foundry (SOFO), the current Interest Coverage is 0 (At Loss) as of Sep. 2023. 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.
Sonic Foundry Inc is engaged in the business of providing video enterprise solutions and services for the digital-first, distance learning, and corporate communications market. It offers video capture, management, and streaming solutions as well as virtual and hybrid events in education, business, and government. Sonic Foundry's family of brands includes Mediasite, Video Solutions, Vidable and Global Learning Exchange. The company also offers video solutions, including Mediasite Video Platform, Mediasite Video Cloud, Mediasite Capture Solutions, Mediasite Events, Mediasite Services, and Mediasite Customer Care. The company has a geographical presence in the United States, Europe, and the Middle East, Asia, and other places.
12GF Score
Get the complete analysis for SOFO
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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