Avalara (NYSE:AVLR) Interest Coverage

: 0 (At Loss) (As of Jun. 2022)

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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. Avalara's Operating Income for the three months ended in Jun. 2022 was $-56.0 Mil. Avalara's Interest Expense for the three months ended in Jun. 2022 was $-1.5 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 Avalara's Interest Coverage or its related term are showing as below:

AVLR's Interest Coverage is not ranked ^*
in the Software industry.
Industry Median: 32.67
* 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.

Avalara Interest Coverage Historical Data

The historical data trend for Avalara'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.

* Premium members only.

Avalara Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Interest Coverage

N/A

Avalara Quarterly Data
	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22
Interest Coverage																N/A	-	-	-	-

Competitive Comparison

For the Software - Application subindustry, Avalara'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.

Annual Data Quarterly Data

Avalara Interest Coverage Distribution

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

* The bar in red indicates where Avalara's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.

Avalara 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.

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

Avalara'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, Avalara's Interest Expense was $-2.3 Mil. Its Operating Income was $-116.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,006.9 Mil.

Avalara did not have earnings to cover the interest expense.

Avalara's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Avalara's Interest Expense was $-1.5 Mil. Its Operating Income was $-56.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,006.6 Mil.

Avalara did not have earnings to cover the interest expense.

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

Avalara (NYSE:AVLR) 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 .

Avalara Interest Coverage Related Terms

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

Avalara (NYSE:AVLR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Avalara Inc (NYSE:AVLR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

255 South King Street, Suite 1800, Seattle, WA, USA, 98104

Website

https://www.avalara.com

Avalara Inc provides compliance solutions. It provides software solutions that help businesses of all types and sizes comply with tax requirements for transactions worldwide. The company offers a broad and growing suite of compliance solutions for transaction taxes, such as sales and use tax, VAT, fuel excise tax, beverage alcohol, cross-border taxes, lodging tax, and communications tax. These solutions enable customers to automate the process of determining taxability, identifying applicable tax rates, determining and collecting taxes, preparing and filing returns, remitting taxes, maintaining tax records, and managing compliance documents. It generates revenue in the form of subscriptions and professional services.

Executives

Marcela Martin	director	C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
Bruce T Crawford	director	255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Srinivas Tallapragada	director	THE LANDMARK AT ONE MARKET STREET, #300, SAN FRANCISCO CA 94105
Ross Tennenbaum	officer: See Remarks	255 S KING ST, STE 1800, SEATTLE WA 98104
Brian Sharples	director	1250 CAPITAL OF TX HWY, BLDG 2, PLAZA 1, AUSTIN TX 78746
Wp Avlr Holdco Llc	10 percent owner	C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Amit Mathradas	officer: See Remarks	255 S KING ST, STE 1800, SEATTLE WA 98104
Kathleen Zwickert	director	255 S KING ST, STE 1800, SEATTLE WA 98104
William Ingram	officer: See Remarks	C/O LEAP WIRELESS INTERNATIONAL, INC., 5887 COPLEY DRIVE, SAN DIEGO CA 92111
Dooren Pascal Van	officer: See Remarks	255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Rajeev Singh	director	6222 185TH AVENUE NE, REDMOND WA 98052
Marion R Foote	director	C/O KINETA, INC., 219 TERRY AVE. N., SUITE 300, SEATTLE WA 98109
Chelsea R. Stoner	director	C/O AVALARA, INC., 255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Jared R. Vogt	director	C/O AVALARA, INC., 255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Daniel E. Manning	officer: Chief Accounting Officer	255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104