Telnet Holding (XTUN:TLNET) Interest Coverage: 21.86 (As of Dec. 2021)


XTUN:TLNET Telnet Holding SA XTUN:TLNET
26 GF Score
Price TND10.72
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What is Telnet Holding Interest Coverage?

Telnet Holding XTUN:TLNET 26 Interest Coverage is 21.86 as of Dec. 2021. GuruFocus rates XTUN:TLNET with a GF Score™ of 26/100.

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. Telnet Holding's Operating Income for the six months ended in Dec. 2021 was TND6.89 Mil. Telnet Holding's Interest Expense for the six months ended in Dec. 2021 was TND-0.32 Mil. Telnet Holding's interest coverage for the quarter that ended in Dec. 2021 was 21.86. The higher the ratio, the stronger the company's financial strength is.

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


XTUN:TLNET's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 24.65
* 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.

Telnet Holding  (XTUN:TLNET) 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 .

Telnet Holding Interest Coverage Related Terms

Telnet Holding Interest Coverage Historical Data

* Premium members only.

The historical data trend for Telnet Holding'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.

Telnet Holding Interest Coverage Chart

Telnet Holding Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Get a 7-Day Free Trial Premium Member Only N/A N/A 3.34 N/A 22.84

Telnet Holding Semi-Annual Data
Dec09 Dec10 Dec11 Dec12 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.82 No Debt N/A 24.58 21.86

XTUN:TLNET vs CRM, INTU, NOW: Interest Coverage Comparison

For the Software - Application subindustry, Telnet Holding'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.

Telnet Holding Interest Coverage vs Software Industry

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

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


XTUN:TLNET
26GF Score
Telnet Holding SA XTUN:TLNET
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Telnet Holding 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.

Telnet Holding's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Telnet Holding's Interest Expense was TND-0.49 Mil. Its Operating Income was TND11.24 Mil. And its Long-Term Debt & Capital Lease Obligation was TND0.98 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*11.235/-0.492
=22.84

Telnet Holding's Interest Coverage for the quarter that ended in Dec. 2021 is calculated as

Here, for the six months ended in Dec. 2021, Telnet Holding's Interest Expense was TND-0.32 Mil. Its Operating Income was TND6.89 Mil. And its Long-Term Debt & Capital Lease Obligation was TND0.98 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2021 )/Interest Expense (Q: Dec. 2021 )
=-1*6.885/-0.315
=21.86

* 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 21.86 mean?
Telnet Holding (XTUN:TLNET) has a Interest Coverage of 21.86 as of Dec. 2021. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Telnet Holding and its competitors.
Is Telnet Holding's Interest Coverage too high?
Telnet Holding's current Interest Coverage is 21.86. The Software industry median Interest Coverage is 24.65. Telnet Holding's value of 21.86 is 11.3% below this industry median. Overall, Telnet Holding has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does Telnet Holding's Interest Coverage compare to CRM and INTU?
Telnet Holding's Interest Coverage of 21.86 can be compared against companies in the Software industry. The industry median Interest Coverage is 24.65. Telnet Holding's value of 21.86 is 11.3% 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 Software company?
The median Interest Coverage among Software companies is 24.65, based on 1,707 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. Telnet Holding's current Interest Coverage of 21.86 is 11.3% 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 Telnet Holding and its competitors. For the Software industry, the median Interest Coverage is 24.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telnet Holding's current Interest Coverage is 21.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telnet Holding stock overvalued right now?
Telnet Holding (XTUN:TLNET) has a current Interest Coverage of 21.86. The current Interest Coverage is 21.86 and 11.3% below the Software industry median of 24.65. Telnet Holding's overall GF Score™ is 26/100. 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 Telnet Holding (XTUN:TLNET), the current Interest Coverage is 21.86 as of Dec. 2021. 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.

Telnet Holding Business Description

Address Les berges du Lac, Rue du Lac Leman, Tunis, TUN, 1053
Telnet Holding SA is engaged in developing software in the field of information and communications technology (ICT) for scientific and technical computing and real-time embedded systems and unit tests for critical applications.
26GF Score

Get the complete analysis for XTUN:TLNET

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

TND10.72
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