BMC Software, (FRA:BMS) Interest Coverage : 4.65 (As of Jun. 2013)

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What is BMC Software, 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. BMC Software,'s Operating Income for the three months ended in Jun. 2013 was €53 Mil. BMC Software,'s Interest Expense for the three months ended in Jun. 2013 was €-11 Mil. BMC Software,'s interest coverage for the quarter that ended in Jun. 2013 was 4.65. The higher the ratio, the stronger the company's financial strength is.

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

FRA:BMS' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 8.8
Current: 8.8

FRA:BMS's Interest Coverage is not ranked
in the Software industry.
Industry Median: 27.78 vs FRA:BMS: 8.80

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

BMC Software, Interest Coverage Historical Data

The historical data trend for BMC Software,'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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BMC Software, Interest Coverage Chart

BMC Software, Annual Data

Trend

Mar04

Mar05

Mar06

Mar07

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Interest Coverage

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21.64

23.76

26.91

23.34

9.74

BMC Software, Quarterly Data
	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13
Interest Coverage	Get a 7-Day Free Trial															7.25	13.02	11.62	7.45	4.65

Competitive Comparison of BMC Software,'s Interest Coverage

For the Software - Application subindustry, BMC Software,'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.

BMC Software,'s Interest Coverage Distribution in the Software Industry

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

* The bar in red indicates where BMC Software,'s Interest Coverage falls into.

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BMC Software, 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.

BMC Software,'s Interest Coverage for the fiscal year that ended in Mar. 2013 is calculated as

Here, for the fiscal year that ended in Mar. 2013, BMC Software,'s Interest Expense was €-37 Mil. Its Operating Income was €359 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,008 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2013 )	/	Interest Expense (A: Mar. 2013 )
	=	-1	*	359.289	/	-36.902
	=	9.74

BMC Software,'s Interest Coverage for the quarter that ended in Jun. 2013 is calculated as

Here, for the three months ended in Jun. 2013, BMC Software,'s Interest Expense was €-11 Mil. Its Operating Income was €53 Mil. And its Long-Term Debt & Capital Lease Obligation was €989 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2013 )	/	Interest Expense (Q: Jun. 2013 )
	=	-1	*	52.833	/	-11.37
	=	4.65

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

BMC Software, (FRA:BMS) 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 .

BMC Software, Interest Coverage Related Terms

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BMC Software, Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » BMC Software, Inc. (FRA:BMS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.bmc.com

BMC Software, Inc., was organized as a Texas corporation in 1980 and was reincorporated in Delaware in July 1988. It is a software company which provides IT management solutions for large, mid-sized and small enterprises and public sector organizations around the world. The Company's portfolios of IT management software solutions simplifies and automates the management of IT processes, mainframe, distributed, virtualized and cloud computing environments, as well as applications and databases. It also provides its customers with maintenance and support services for its products and assist customers with software implementation, integration, IT process and organizational transformation, and education services. The Company is organized into two business segments, Enterprise Service Management (ESM) and Mainframe Service Management (MSM). The Company's ESM segment consists of its solutions and related professional services in the following IT management areas: Service Assurance; Service Automation; Service Support; and BMC Atrium. The Company's MSM segment addresses IT requirements for mainframe data and performance management, middleware management, job scheduling and enterprise workload automation. The Company's customers include manufacturers, telecommunication companies, financial service providers, educational institutions, retailers, distributors, hospitals, service providers, government agencies and channel partners including resellers, distributors and system integrators. Its competitors are International Business Machines Corporation (IBM), CA, Inc. (CA) and Hewlett-Packard Company (HP). The Company's solutions are used by some of the largest, demanding IT organizations in the world including over 16,000 companies.