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Datalink (Datalink) Interest Coverage : 5.86 (As of Sep. 2016)


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What is Datalink 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. Datalink's Operating Income for the three months ended in Sep. 2016 was $0.5 Mil. Datalink's Interest Expense for the three months ended in Sep. 2016 was $-0.1 Mil. Datalink's interest coverage for the quarter that ended in Sep. 2016 was 5.86. The higher the ratio, the stronger the company's financial strength is.

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


DTLK's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 12.55
* 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.


Datalink Interest Coverage Historical Data

The historical data trend for Datalink'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.

* Premium members only.

Datalink Interest Coverage Chart

Datalink Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 419.83 316.39 99.46 61.10 34.43

Datalink Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.52 90.45 - 49.04 5.86

Competitive Comparison of Datalink's Interest Coverage

For the Computer Hardware subindustry, Datalink'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.


Datalink's Interest Coverage Distribution in the Hardware Industry

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

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



Datalink 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.

Datalink's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, Datalink's Interest Expense was $-0.3 Mil. Its Operating Income was $9.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $5.9 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2015 )/Interest Expense (A: Dec. 2015 )
=-1*9.054/-0.263
=34.43

Datalink's Interest Coverage for the quarter that ended in Sep. 2016 is calculated as

Here, for the three months ended in Sep. 2016, Datalink's Interest Expense was $-0.1 Mil. Its Operating Income was $0.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $3.4 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2016 )/Interest Expense (Q: Sep. 2016 )
=-1*0.504/-0.086
=5.86

* 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.


Datalink  (NAS:DTLK) 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 .


Datalink Interest Coverage Related Terms

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


Datalink (Datalink) Business Description

Traded in Other Exchanges
N/A
Address
Datalink Corp was incorporated in the State of Minnesota in 1987. It provides solutions and services that make data centers efficient, manageable and responsive to changing business needs. The Company assesses designs, deploys, manages, and offers support unified infrastructures such as servers, storage and networks. It offers full suite of practice-specific consulting, analysis, design, implementation, management, and support services. The Company has a physical laboratory that customers can visit in Minneapolis enabling them to participate in physical demonstrations of a variety of technologies, including: site-to-site replication, data recovery, WAN optimization, de-duplication, and virtual data center architectures. It leverages this lab to test, validate and compare technologies from manufacturers and software developers, perform configuration services, troubleshoot support issues and train its professional and support services teams. It provides around the clock technical support from a team of customer support and field engineers. The Company provides analysis, design, implementation, management and support services to customers through either a stand-alone services engagement or as a part of an overall project that includes a server, storage and networking solutions and services. Its portfolio of solutions and services spans four practices: Consolidation and virtualization; Data storage and protection; and Business continuity and disaster recovery solutions. The Company does not manufacture products, but works with end users to assess their information-storage and retrieval requirements and then designs the solutions. Its customers include computer technology, financial service, insurance, telecommunications, consumer product, Internet, and transportation companies across the United States.
Executives
James E Ousley director BELL MICRO, 1941 RINGWOOD AVE., SAN JOSE CA 95131
Brent G Blackey director 8170 UPLAND CIRCLE, CHANHASSEN MN 55317
Paul F Lidsky director, officer: President & CEO 10340 VIKING DRIVE, SUITE 150, EDEN PRAIRIE MN 55344
Mercedes Walton director
Gregory T Barnum officer: CFO
Robert M Price director 5225 GRANDVIEW SQUARE, APT 204, EDINA MN 55436
Margaret A Loftus director 2305 CIRCULA DEANZA, TUBAC AZ 85646
James D Leslie officer: EVP, Strategy & Business Devel 10050 CROSSTOWN CIRCLE, SUITE 500, EDEN PRAIRIE MN 55344
Karen E. Clary officer: Exec VP Human Resources 8170 UPLAND CIRCLE CHANHASSEN MN 55317

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