Advantage Solutions (Advantage Solutions) Interest Coverage

: 0.97 (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. Advantage Solutions's Operating Income for the three months ended in Dec. 2023 was $44.60 Mil. Advantage Solutions's Interest Expense for the three months ended in Dec. 2023 was $-45.85 Mil. Advantage Solutions's interest coverage for the quarter that ended in Dec. 2023 was 0.97. The higher the ratio, the stronger the company's financial strength is.

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

ADVWW' s Interest Coverage Range Over the Past 10 Years
Min: 0.25 Med: 1.12 Max: 1.67
Current: 0.45

ADVWW's Interest Coverage is ranked worse than
97.87% of 611 companies
in the Media - Diversified industry
Industry Median: 11.96 vs ADVWW: 0.45

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

Advantage Solutions Interest Coverage Historical Data

The historical data trend for Advantage Solutions'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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Advantage Solutions Annual Data

Trend

Dec15

Dec16

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.92

0.25

1.67

1.30

0.45

Advantage Solutions Quarterly Data
	Dec16	Mar17	Dec18	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															0.93	-	0.73	0.38	0.97

Competitive Comparison

For the Advertising Agencies subindustry, Advantage Solutions'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.

Advantage Solutions Interest Coverage Distribution

For the Media - Diversified industry and Communication Services sector, Advantage Solutions's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Advantage Solutions's Interest Coverage falls into.

Advantage Solutions 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.

Advantage Solutions'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, Advantage Solutions's Interest Expense was $-165.80 Mil. Its Operating Income was $74.59 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,888.23 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	74.594	/	-165.802
	=	0.45

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

Here, for the three months ended in Dec. 2023, Advantage Solutions's Interest Expense was $-45.85 Mil. Its Operating Income was $44.60 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,888.23 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	44.596	/	-45.85
	=	0.97

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

Advantage Solutions (NAS:ADVWW) 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 .

Advantage Solutions Interest Coverage Related Terms

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Advantage Solutions (Advantage Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Advantage Solutions Inc (NAS:ADVWW) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ADV:USA

Address

15310 Barranca Parkway, Suite 100, Irvine, CA, USA, 92618

Website

https://www.advantagesolutions.net

Advantage Solutions Inc is the provider of outsourced sales and marketing solutions to consumer goods companies and retailers. It has a technology-enabled platform of sales and marketing services like headquarter sales, retail merchandising, in-store sampling, digital commerce, and shopper marketing. For brands and retailers of all sizes, the firm helps to get the right products on the shelf and into the hands of consumers. The company helps its clients to sell more while spending less. Advantage has offices throughout North America and strategic investments in select markets throughout Africa, Asia, Australia, and Europe through which it services the global needs of multinational, regional, and local manufacturers. Its services are provided across two segments sales and marketing.