Shift4 Payments (Shift4 Payments) Interest Coverage : 5.95 (As of Dec. 2023)

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What is Shift4 Payments 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. Shift4 Payments's Operating Income for the three months ended in Dec. 2023 was $48 Mil. Shift4 Payments's Interest Expense for the three months ended in Dec. 2023 was $-8 Mil. Shift4 Payments's interest coverage for the quarter that ended in Dec. 2023 was 5.95. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Shift4 Payments's Interest Coverage or its related term are showing as below:

FOUR' s Interest Coverage Range Over the Past 10 Years
Min: 0.15 Med: 1.79 Max: 4.88
Current: 4.88

FOUR's Interest Coverage is ranked worse than
78.33% of 1601 companies
in the Software industry
Industry Median: 29.56 vs FOUR: 4.88

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

Shift4 Payments Interest Coverage Historical Data

The historical data trend for Shift4 Payments'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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Shift4 Payments Interest Coverage Chart

Shift4 Payments Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.79

4.88

Shift4 Payments Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.87	1.95	4.94	6.70	5.95

Competitive Comparison of Shift4 Payments's Interest Coverage

For the Software - Infrastructure subindustry, Shift4 Payments'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.

Shift4 Payments's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Shift4 Payments's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shift4 Payments's Interest Coverage falls into.

Shift4 Payments 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.

Shift4 Payments's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Shift4 Payments's Interest Expense was $-32 Mil. Its Operating Income was $157 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,769 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	156.5	/	-32.1
	=	4.88

Shift4 Payments's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Shift4 Payments's Interest Expense was $-8 Mil. Its Operating Income was $48 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,769 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	47.6	/	-8
	=	5.95

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

Shift4 Payments (NYSE:FOUR) 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 .

Shift4 Payments Interest Coverage Related Terms

Thank you for viewing the detailed overview of Shift4 Payments's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Shift4 Payments (Shift4 Payments) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Shift4 Payments Inc (NYSE:FOUR) » Definitions » Interest Coverage

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Traded in Other Exchanges

FOUR:Mexico

Address

2202 North Irving Street, Allentown, PA, USA, 18109

Website

https://www.shift4.com

Shift4 Payments Inc is provider of integrated payment processing and technology solutions. The company offers software providers a single integration to an end-to-end payments offering, a powerful gateway and a robust suite of technology solutions (including cloud enablement, business intelligence, analytics, and mobile) to enhance the value of their software suites and simplify payment acceptance. The Shift4 Model is built to serve a range of merchants from small-to-medium-sized businesses to large and complex enterprises across numerous verticals, including lodging, leisure, and food and beverage.

Executives

Sarah Goldsmith-grover	director	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Nancy Disman	director	57 ROUND TREE DRIVE, MELVILLE NY 11747
David Taylor Lauber	officer: Chief Strategy Officer	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Jordan Frankel	officer: GC & Corporate Secretary	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Sam Bakhshandehpour	director	THE NEW HOME COMPANY, 95 ENTERPRISE, SUITE 325, ALISO VIEJO CA 92656
Jared Isaacman	director, 10 percent owner, officer: Chairman & CEO	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Karen Roter Davis	director	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING ST, ALLENTOWN PA 18109
Searchlight Capital Partners Ii Gp, Llc	10 percent owner	745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Bradley Herring	officer: CFO	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 16109
Searchlight Ii Gwn Gp, Llc	10 percent owner	C/O SEARCHLIGHT CAPITAL PARTNERS, L.P.., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Donald Isaacman	director	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Searchlight Ii Gwn, L.p.	10 percent owner	745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Kevin J. Cronic	officer: Chief System Architect	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Searchlight Capital Ii Pv, L.p.	10 percent owner	C/O SEARCHLIGHT CAPITAL PARTNERS, L.P., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Steven M. Sommers	officer: Chief Application Architect	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109