Avaya Holdings (Avaya Holdings) Interest Coverage : 0 (At Loss) (As of Jun. 2022)

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What is Avaya 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. Avaya Holdings's Operating Income for the three months ended in Jun. 2022 was $-69 Mil. Avaya Holdings's Interest Expense for the three months ended in Jun. 2022 was $-54 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 Avaya Holdings's Interest Coverage or its related term are showing as below:

AVYAQ's Interest Coverage is not ranked ^*
in the Software industry.
Industry Median: 29.35
* 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.

Avaya Holdings Interest Coverage Historical Data

The historical data trend for Avaya 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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Avaya Holdings Interest Coverage Chart

Avaya Holdings Annual Data

Trend

Sep12

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Interest Coverage

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1.29

0.88

0.91

0.98

1.08

Avaya Holdings Quarterly Data
	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22
Interest Coverage	Get a 7-Day Free Trial															0.85	1.42	0.11	0.59	-

Competitive Comparison of Avaya Holdings's Interest Coverage

For the Software - Application subindustry, Avaya 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.

Avaya Holdings's Interest Coverage Distribution in the Software Industry

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

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

Avaya 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.

Avaya Holdings's Interest Coverage for the fiscal year that ended in Sep. 2021 is calculated as

Here, for the fiscal year that ended in Sep. 2021, Avaya Holdings's Interest Expense was $-222 Mil. Its Operating Income was $239 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,915 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2021 )	/	Interest Expense (A: Sep. 2021 )
	=	-1	*	239	/	-222
	=	1.08

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

Here, for the three months ended in Jun. 2022, Avaya Holdings's Interest Expense was $-54 Mil. Its Operating Income was $-69 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,585 Mil.

Avaya Holdings did not have earnings to cover the interest expense.

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

Avaya Holdings (OTCPK:AVYAQ) 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 .

Avaya Holdings Interest Coverage Related Terms

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

Avaya Holdings (Avaya Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Avaya Holdings Corp (OTCPK:AVYAQ) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

2605 Meridian Parkway, Suite 200, Durham, NC, USA, 27713

Website

http://www.avaya.com

Avaya Holdings Corp provides digital communications products, solutions, and services for businesses. The company has two operating segments namely Products and Solutions, and Services. Products and Solutions offer Unified Communications and Contact Center platforms, applications and devices. It helps to offer an open, extensible development platform so that customers and third parties can easily create custom applications and automated workflows for their unique needs. Whereas Services consists of three business areas: Global Support Services, Enterprise Cloud and Managed Services and Professional Services. The company generates maximum revenue from the Services segment. Geographically, it derives a majority of revenue from the U.S.

Executives

Carrie W. Teffner	director	200 DOMAIN DRIVE, STRATHAM NH 03885
King Theodore Walker Cheng-de	10 percent owner	UNIT 1502, 15TH FLOOR, 99 HENNESSY ROAD, WANCHAI K3 999077
Jill Kathleen Frizzley	director	P.O. BOX 1541, ONE BLUE HILL PLAZA, PEARL RIVER NY 10965
Anna-marie Crowley	officer: GVP, Human Resources	C/O AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Vito Carnevale	officer: SVP, General Counsel	C/O AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Rebecca A Roof	officer: Interim CFO	C/O LORDSTOWN MOTORS CORP., 2300 HALLOCK YOUNG ROAD, LORDSTOWN OH 44481
Alan Masarek	director, officer: President and CEO	C/O VONAGE HOLDINGS CORP., 23 MAIN STREET, HOLMDEL NJ 07733
Stephen Spears	officer: EVP and Chief Revenue Officer	C/O AVAYA, 2605 MERIDIAN PKWY, SUITE 200, DURHAM NC 27713
James M Chirico	director, officer: President & CEO	2605 MERIDIAN PARKWAY, DURHAM NC 27713
Kevin Speed	officer: VP, Controller & CAO	AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Kieran J Mcgrath	officer: SVP & CFO	350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Shefali A Shah	officer: SVP, CAO and General Counsel	C/O AVAYA, ONE PENN PLAZA, 16TH FLOOR, NEW YORK NY 10119
Susan Louise Spradley	director	C/O NORTEL NETWORKS, 8200 DIXIE ROAD STE 100, BRAMPTON ONTARIO A6 L6T 5PT
Robert I Theis	director
Anthony Bartolo	officer: EVP, Chief Product Officer	C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606