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Rainmaker Systems (Rainmaker Systems) Interest Coverage : 0 (At Loss) (As of Sep. 2014)


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What is Rainmaker Systems 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. Rainmaker Systems's Operating Income for the three months ended in Sep. 2014 was $-1.99 Mil. Rainmaker Systems's Interest Expense for the three months ended in Sep. 2014 was $-0.32 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 Rainmaker Systems's Interest Coverage or its related term are showing as below:


VCTL's Interest Coverage is not ranked *
in the Education industry.
Industry Median: 15.25
* 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.


Rainmaker Systems Interest Coverage Historical Data

The historical data trend for Rainmaker Systems'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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Rainmaker Systems Interest Coverage Chart

Rainmaker Systems Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Interest Coverage
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Rainmaker Systems Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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Competitive Comparison of Rainmaker Systems's Interest Coverage

For the Education & Training Services subindustry, Rainmaker Systems'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.


Rainmaker Systems's Interest Coverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Rainmaker Systems's Interest Coverage distribution charts can be found below:

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



Rainmaker Systems 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.

Rainmaker Systems's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, Rainmaker Systems's Interest Expense was $-0.23 Mil. Its Operating Income was $-14.03 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Rainmaker Systems did not have earnings to cover the interest expense.

Rainmaker Systems's Interest Coverage for the quarter that ended in Sep. 2014 is calculated as

Here, for the three months ended in Sep. 2014, Rainmaker Systems's Interest Expense was $-0.32 Mil. Its Operating Income was $-1.99 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Rainmaker Systems 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.

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


Rainmaker Systems  (OTCPK:VCTL) 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 .


Rainmaker Systems Interest Coverage Related Terms

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


Rainmaker Systems (Rainmaker Systems) Business Description

Traded in Other Exchanges
N/A
Address
1821 S. Bascom Avenue, Suite 385, Campbell, CA, USA, 95008
Rainmaker Systems Inc is a learning management solution provider to organizations of all size across the technology, financial services, biosciences, human resources, and consulting industries, among others.
Executives
Eric Salzman director C/O 8X8 INC., 675 CREEKSIDE WAY, CAMPCALL CA 95008
Gary S Briggs director 117 ADAMS STREET, C/O ETSY, BROOKLYN NY 11201
Timothy Burns officer: Acting Chief Financial Officer 900 E. HAMILTON AVENUE, SUITE 400, CAMPBELL CA 95008
Charles Geiger director C/O CHEGG, INC., 3990 FREEDOM CIRCLE, SANTA CLARA CA 95054
Steve Valenzuela officer: Chief Financial Officer 1800 GREEN HILLS ROAD, SCOTTS VALLEY CA 95066
Diker Management Llc 10 percent owner 570 LEXINGTON AVENUE, 27TH FLOOR, NEW YORK NY 10022
Marxe Austin W & Greenhouse David M 10 percent owner C/O SPECIAL SITUATIONS FUNDS, 527 MADISON AVENUE, SUITE 2600, NEW YORK NY 10022
Martin Hernandez officer: President C/O WESTELL TECHNOLOGIES, INC. 750 NORTH COMMONS DRIVE AURORA IL 60504
Hebb Donald B Jr 10 percent owner 400 EAST PRATT STREET, SUITE 910, BALTIMORE MD 21202
Timothy T Weglicki 10 percent owner 400 EAST PRATT STREET, SUITE 910, BALTIMORE MD 21202
Phillip A Clough director, 10 percent owner 400 EAST PRATT STREET, SUITE 910, BALTIMORE MD 21202
Stobo John D Jr 10 percent owner 400 EAST PRATT STREET, SUITE 910, BALTIMORE MD 21202
Abs Capital Partners Iii L P 10 percent owner 1 SOUTH STREET, 25TH FLOOR, BALTIMORE MD 21202
Abs Partners Iii Llc 10 percent owner
Urioste George De director 2118 WALSH AVENUE, SUITE 210, SANTA CLARA CA 95050

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