HMS Holdings (HMS Holdings) Interest Coverage : 28.92 (As of Dec. 2020)

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What is HMS 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. HMS Holdings's Operating Income for the three months ended in Dec. 2020 was $42.0 Mil. HMS Holdings's Interest Expense for the three months ended in Dec. 2020 was $-1.5 Mil. HMS Holdings's interest coverage for the quarter that ended in Dec. 2020 was 28.92. The higher the ratio, the stronger the company's financial strength is.

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

HMSY's Interest Coverage is not ranked ^*
in the Healthcare Providers & Services industry.
Industry Median: 8.92
* 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.

HMS Holdings Interest Coverage Historical Data

The historical data trend for HMS 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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HMS Holdings Interest Coverage Chart

HMS Holdings Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Interest Coverage

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6.77

4.64

7.36

9.35

12.29

HMS Holdings Quarterly Data
	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20
Interest Coverage	Get a 7-Day Free Trial															9.76	8.16	2.88	14.12	28.92

Competitive Comparison of HMS Holdings's Interest Coverage

For the Health Information Services subindustry, HMS 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.

HMS Holdings's Interest Coverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, HMS Holdings's Interest Coverage distribution charts can be found below:

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

HMS 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.

HMS Holdings's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, HMS Holdings's Interest Expense was $-7.6 Mil. Its Operating Income was $93.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $252.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2020 )	/	Interest Expense (A: Dec. 2020 )
	=	-1	*	93.227	/	-7.586
	=	12.29

HMS Holdings's Interest Coverage for the quarter that ended in Dec. 2020 is calculated as

Here, for the three months ended in Dec. 2020, HMS Holdings's Interest Expense was $-1.5 Mil. Its Operating Income was $42.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $252.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2020 )	/	Interest Expense (Q: Dec. 2020 )
	=	-1	*	41.958	/	-1.451
	=	28.92

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

HMS Holdings (NAS:HMSY) 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 .

HMS Holdings Interest Coverage Related Terms

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

HMS Holdings (HMS Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » HMS Holdings Corp (NAS:HMSY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

5615 High Point Drive, Irving, TX, USA, 75038

Website

https://www.hms.com

HMS Holdings Corp is a United States-based holding company that conducts businesses through its operating subsidiaries. The company offers services that help customers contain healthcare insurance benefit costs. Its primary offerings comprise coordination of benefits, payment integrity, and eligibility verification. The coordination of benefits service ensures the right party pays a health claim. The payment integrity service ensures the billing and/or payment is accurate and appropriate. The eligibility verification service ensures individuals meet qualifying criteria for healthcare programs. The company's customers include Medicaid agencies, government health agencies, health plans, government and private employers, and others. The company operates only within the United States.

Executives

Richard H Stowe	director	CAPITAL COUNSEL LLC 360 PARK AVENUE 11TH FLOOR NEW YORK NY 10022
Craig R Callen	director	7902 WESTPARK DR, C/O SUNRISE ASSISTED LIVING, MCLEAN VA 22102
Tellez Cora M	director	TISCH FAMILY INTERESTS, 667 MADISON AVE 7TH FL, NEW YORK NY 10021-8087
Bart M Schwartz	director	401 PARK AVENUE SOUTH NEW YORK NY 10016
William C Lucia	director, officer: Chairman, President and CEO	HEALTH MANAGEMENT SYSTEMS 401 PARK AVENUE S NEW YORK NY 10021
Katherine Baicker	director	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Robert Becker	director	C/O HMS HOLDINGS CORP. 5615 HIGH POINT DR. IRVING TX 75038
Miller William F Iii	director	3618 HARVARD, DALLAS TX 75205
Ellen A Rudnick	director	5807 SOUTH WOODLAWN AVENUE, MP POLSKY CENTER FOR ENTREPRENEURSHIP, CHICAGO IL 60637
Jeffrey A Rideout	director	2142 DEER OAK WAY, DANVILLE CA 94506
Greg D Aunan	officer: SVP, Chief Accounting Officer	HMS HOLDINGS CORP., 5615 HIGH POINT DRIVE, IRVING TX 75038
Jacob Sims	officer: SVP, Chief Technology Officer	C/O HMS HOLDINGS CORP. 5615 HIGH POINT DR. IRVING TX 75038
David A Alexander	officer: Chief HR & Compliance Officer	C/O HMS HOLDINGS CORP. 5615 HIGH POINT DRIVE IRVING TX 75038
Jeffrey Scott Sherman	officer: EVP, CFO, and Treasurer	103 POWELL COURT, SUITE 200, BRENTWOOD TN 37027
Teresa South	officer: Chief Administrative Officer	401 PARK AVENUE SOUTH NEW YORK NY 10016