Pushpay Holdings (ASX:PPH) Interest Coverage : 9.26 (As of Sep. 2022)

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What is Pushpay 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. Pushpay Holdings's Operating Income for the six months ended in Sep. 2022 was A$18.3 Mil. Pushpay Holdings's Interest Expense for the six months ended in Sep. 2022 was A$-2.0 Mil. Pushpay Holdings's interest coverage for the quarter that ended in Sep. 2022 was 9.26. The higher the ratio, the stronger the company's financial strength is.

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

ASX:PPH' s Interest Coverage Range Over the Past 10 Years
Min: 15.65 Med: No Debt Max: No Debt
Current: 15.65

ASX:PPH's Interest Coverage is not ranked
in the Software industry.
Industry Median: 29.35 vs ASX:PPH: 15.65

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

Pushpay Holdings Interest Coverage Historical Data

The historical data trend for Pushpay 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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Pushpay Holdings Interest Coverage Chart

Pushpay Holdings Annual Data

Trend

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Interest Coverage

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No Debt

18.82

30.55

30.78

Pushpay Holdings Semi-Annual Data
	Mar13	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22
Interest Coverage	Get a 7-Day Free Trial														23.70	39.31	122.31	18.68	9.26

Competitive Comparison of Pushpay Holdings's Interest Coverage

For the Software - Infrastructure subindustry, Pushpay 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.

Pushpay Holdings's Interest Coverage Distribution in the Software Industry

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

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

Pushpay 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.

Pushpay Holdings's Interest Coverage for the fiscal year that ended in Mar. 2022 is calculated as

Here, for the fiscal year that ended in Mar. 2022, Pushpay Holdings's Interest Expense was A$-2.1 Mil. Its Operating Income was A$64.1 Mil. And its Long-Term Debt & Capital Lease Obligation was A$81.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2022 )	/	Interest Expense (A: Mar. 2022 )
	=	-1	*	64.051	/	-2.081
	=	30.78

Pushpay Holdings's Interest Coverage for the quarter that ended in Sep. 2022 is calculated as

Here, for the six months ended in Sep. 2022, Pushpay Holdings's Interest Expense was A$-2.0 Mil. Its Operating Income was A$18.3 Mil. And its Long-Term Debt & Capital Lease Obligation was A$67.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2022 )	/	Interest Expense (Q: Sep. 2022 )
	=	-1	*	18.288	/	-1.976
	=	9.26

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

Pushpay Holdings (ASX:PPH) 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 .

Pushpay Holdings Interest Coverage Related Terms

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

Pushpay Holdings (ASX:PPH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Pushpay Holdings Ltd (ASX:PPH) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

167 Victoria Street West, Level 6, Building D, Auckland, NTL, NZL, 1010

Website

https://www.pushpay.com

Pushpay primarily sells donor and church management systems to the global faith sector. Revenue is mainly derived from: (1) subscription fees based on a church's size and number of services provided to the church, and (2) processing fees for donations processed through its giving platform. Operations are mainly in the U.S., and its core customers are large evangelical and nondenominational churches with weekly attendances ranging from 1,100 to 50,000. Pushpay also sells to medium and small churches. The firm's solutions encompass, but are not limited to, virtual giving, record keeping, event registration, member engagement, video broadcasting, and data analytics. It also services nonprofit organisation and education providers, though these are currently immaterial to earnings.