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CarGurus Interest Coverage

: N/A (As of Mar. 2021)
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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. CarGurus's Operating Income for the three months ended in Mar. 2021 was $25.8 Mil. CarGurus's Interest Expense for the three months ended in Mar. 2021 was $0.0 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 is at least 5. CarGurus Inc has enough cash to cover all of its debt. Its financial situation is stable.

NAS:CARG' s Interest Coverage Range Over the Past 10 Years
Min: 329.65   Med: 526.69   Max: No Debt
Current: N/A

329.65
No Debt

NAS:CARG's Interest Coverage is ranked lower than
99.99% of the 326 Companies
in the Interactive Media industry.

( Industry Median: 47.02 vs. NAS:CARG: N/A )

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


CarGurus Interest Coverage Historical 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.

* Premium members only.

CarGurus Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only 329.65 526.69 No Debt N/A N/A

CarGurus Quarterly Data
Dec15 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
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
* 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.
   

CarGurus Interest Coverage Distribution

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



CarGurus 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.


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

CarGurus'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, CarGurus's Interest Expense was $0.0 Mil. Its Operating Income was $97.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $58.8 Mil.

GuruFocus does not calculate CarGurus's interest coverage with the available data.

CarGurus's Interest Coverage for the quarter that ended in Mar. 2021 is calculated as

Here, for the three months ended in Mar. 2021, CarGurus's Interest Expense was $0.0 Mil. Its Operating Income was $25.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $68.3 Mil.

GuruFocus does not calculate CarGurus'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.


CarGurus  (NAS:CARG) 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 .


CarGurus Interest Coverage Related Terms


CarGurus Interest Coverage Headlines

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