Market Cap : 3.71 B | Enterprise Value : 3.54 B | P/E (TTM) : 55.00 | P/B : 10.75 |
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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. CarGurus's Operating Income for the three months ended in Sep. 2020 was $43.6 Mil. CarGurus's Interest Expense for the three months ended in Sep. 2020 was $0.0 Mil. GuruFocus does not calculate 's interest coverage with the available data. The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies interest coverage is at least 5. CarGurus Inc has enough cash to cover all of its debt. Its financial situation is stable.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where CarGurus's Interest Coverage falls into.
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.
CarGurus's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as
Here, for the fiscal year that ended in Dec. 2019, CarGurus's Interest Expense was $0.0 Mil. Its Operating Income was $34.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $60.8 Mil.
GuruFocus does not calculate CarGurus's interest coverage with the available data. |
CarGurus's Interest Coverage for the quarter that ended in Sep. 2020 is calculated as
Here, for the three months ended in Sep. 2020, CarGurus's Interest Expense was $0.0 Mil. Its Operating Income was $43.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $62.0 Mil.
GuruFocus does not calculate CarGurus's interest coverage with the available data. |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
The higher the ratio, the stronger the company's Financial Strength is.
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 .
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