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Zoom Video Communications (Zoom Video Communications) Interest Coverage

: N/A (As of Jan. 2024)
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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. Zoom Video Communications's Operating Income for the three months ended in Jan. 2024 was $169 Mil. Zoom Video Communications's Interest Expense for the three months ended in Jan. 2024 was $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 to be at least 5. Zoom Video Communications Inc has enough cash to cover all of its debt. Its financial situation is stable.

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


ZM's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 29.56
* 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.


Zoom Video Communications Interest Coverage Historical Data

The historical data trend for Zoom Video Communications'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.

Zoom Video Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only N/A N/A N/A N/A N/A

Zoom Video Communications Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only N/A N/A N/A N/A N/A

Competitive Comparison

For the Software - Application subindustry, Zoom Video Communications'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.


Zoom Video Communications Interest Coverage Distribution

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

* The bar in red indicates where Zoom Video Communications's Interest Coverage falls into.



Zoom Video Communications 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.

Zoom Video Communications's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, Zoom Video Communications's Interest Expense was $0 Mil. Its Operating Income was $525 Mil. And its Long-Term Debt & Capital Lease Obligation was $48 Mil.

GuruFocus does not calculate Zoom Video Communications's interest coverage with the available data.

Zoom Video Communications's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Zoom Video Communications's Interest Expense was $0 Mil. Its Operating Income was $169 Mil. And its Long-Term Debt & Capital Lease Obligation was $48 Mil.

GuruFocus does not calculate Zoom Video Communications's interest coverage with the available data.

* 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.


Zoom Video Communications  (NAS:ZM) 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 .


Zoom Video Communications Interest Coverage Related Terms

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


Zoom Video Communications (Zoom Video Communications) Business Description

Address
55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
Executives
Aparna Bawa officer: General Counsel C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Shane Crehan officer: Chief Accounting Officer C/O EVENTBRITE, INC., 155 5TH STREET, 7TH FLOOR, SAN FRANCISCO CA 94103
Velchamy Sankarlingam officer: Pres. of Engineering & Product C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Eric S. Yuan director, 10 percent owner, officer: Chief Executive Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Santiago Subotovsky director C/O EMERGENCE CAPITAL PARTNERS, 160 BOVENT ROAD SUITE 300, SAN MATEO CA 94402
Kelly Steckelberg officer: Chief Financial Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Jonathan Chadwick director 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Gregory Tomb officer: President 650 CASTRO ST, SUITE 400, MOUNTAIN VIEW CA 94041
Cindy L Hoots director C/O ZOOM VIDEO COMMUNICATIONS, INC, 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
William R Mcdermott director 2225 LAWSON LANE, SANTA CLARA CA 95054
Ryan Azus officer: Chief Revenue Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Carl M. Eschenbach director, 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, PALO ALTO CA 94025
Janine Pelosi officer: Chief Marketing Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Kimberly Hammonds director 100 EAST DAVIE STREET, RALEIGH NC 27601
Bart Swanson director C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113