MACOM Technology Solutions Holdings (MACOM Technology Solutions Holdings) Interest Coverage

: 8.53 (As of Dec. 2023)

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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. MACOM Technology Solutions Holdings's Operating Income for the three months ended in Dec. 2023 was $11.0 Mil. MACOM Technology Solutions Holdings's Interest Expense for the three months ended in Dec. 2023 was $-1.3 Mil. MACOM Technology Solutions Holdings's interest coverage for the quarter that ended in Dec. 2023 was 8.53. The higher the ratio, the stronger the company's financial strength is.

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

MTSI' s Interest Coverage Range Over the Past 10 Years
Min: 0.17 Med: 2.61 Max: 61.88
Current: 61.88

MTSI's Interest Coverage is ranked better than
69.03% of 620 companies
in the Semiconductors industry
Industry Median: 19.975 vs MTSI: 61.88

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

MACOM Technology Solutions Holdings Interest Coverage Historical Data

The historical data trend for MACOM Technology Solutions 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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MACOM Technology Solutions Holdings Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

0.17

3.67

15.52

8.67

MACOM Technology Solutions Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																12.52	N/A	N/A	N/A	8.53

Competitive Comparison

For the Semiconductors subindustry, MACOM Technology Solutions 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.

MACOM Technology Solutions Holdings Interest Coverage Distribution

For the Semiconductors industry and Technology sector, MACOM Technology Solutions Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where MACOM Technology Solutions Holdings's Interest Coverage falls into.

MACOM Technology Solutions 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.

MACOM Technology Solutions Holdings's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, MACOM Technology Solutions Holdings's Interest Expense was $-12.4 Mil. Its Operating Income was $107.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $478.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	107.4	/	-12.384
	=	8.67

MACOM Technology Solutions Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, MACOM Technology Solutions Holdings's Interest Expense was $-1.3 Mil. Its Operating Income was $11.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $479.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	11.01	/	-1.29
	=	8.53

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

MACOM Technology Solutions Holdings (NAS:MTSI) 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 .

MACOM Technology Solutions Holdings Interest Coverage Related Terms

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MACOM Technology Solutions Holdings (MACOM Technology Solutions Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » MACOM Technology Solutions Holdings Inc (NAS:MTSI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

1MA:Germany

Address

100 Chelmsford Street, Lowell, MA, USA, 01851

Website

https://www.macom.com

MACOM Technology Solutions Holdings Inc is a provider of analog, digital and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems. Roughly a third of the firm's revenue is generated in the United States, with the rest coming from China, Taiwan, and other countries across the world.

Executives

Robert Dennehy	officer: SVP, Operations	100 CHELMSFORD STREET, LOWELL MA 01851
Stephen G Daly	director	100 CHELMSFORD STREET, LOWELL MA 01851
Douglas J Carlson	officer: SVP & GM, RF & Microwave	MACOM TECHNOLOGY SOLUTIONS HOLDINGS INC., 100 CHELMSFORD ST., LOWELL MA 01851
Dong Hyun Hwang	officer: SVP, Global Sales	100 CHELMSFORD STREET, LOWELL MA 01851
John Kober	officer: Senior VP and CFO	MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC, 100 CHELMSFORD STREET, LOWELL MA 01851
Ambra R. Roth	officer: SVP, GC, HR & Secretary	C/O MACOM TECHNOLOGY SOLUTIONS HOLDINGS, 100 CHELMSFORD STREET, LOWELL MA 01851
John L Ocampo	director, 10 percent owner, officer: Chairman	100 CHELMSFORD STREET, LOWELL MA 01851
Geoffrey G Ribar	director
Wayne Mack Struble	officer: SVP, Advanced Semiconductor	C/O MACOM TECHNOLOGY SOLUTIONS HOLDINGS, 100 CHELMSFORD STREET, LOWELL MA 01851
Jihye Whang Rosenband	director	C/O MACOM TECHNOLOGY SOLUTIONS HOLDINGS, 100 CHELMSFORD STREET, LOWELL MA 01851
Peter Y Chung	director, other: Indirect GP of 10% Owner	C/O SUMMIT PARTNERS, 222 BERKELEY STREET, 18TH FLR, BOSTON MA 02116
Charles R Bland	director
John Ritchie	director	303 VELOCITY WAY, FOSTER CITY X1 94404
Hegarty Conor Noel	officer: PFO and PAO	C/O MACOM TECHNOLOGY SOLUTIONS HOLDINGS, 100 CHELMSFORD STREET, LOWELL MA 01851
Vivek Rajgarhia	officer: SVP & GM, Lightwave	MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC, 100 CHELMSFORD ST., LOWELL MA 01851