PCM (PCMI) Interest Coverage : 5.61 (As of Jun. 2019)

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What is PCM 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. PCM's Operating Income for the three months ended in Jun. 2019 was $13 Mil. PCM's Interest Expense for the three months ended in Jun. 2019 was $-2 Mil. PCM's interest coverage for the quarter that ended in Jun. 2019 was 5.61. The higher the ratio, the stronger the company's financial strength is.

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

PCMI's Interest Coverage is not ranked ^*
in the Hardware industry.
Industry Median: 12.57
* 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.

PCM Interest Coverage Historical Data

The historical data trend for PCM'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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PCM Interest Coverage Chart

PCM Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Interest Coverage

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4.94

5.74

1.35

4.30

PCM Quarterly Data
	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19
Interest Coverage	Get a 7-Day Free Trial															5.70	4.64	4.42	3.68	5.61

Competitive Comparison of PCM's Interest Coverage

For the Electronics & Computer Distribution subindustry, PCM'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.

PCM's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, PCM's Interest Coverage distribution charts can be found below:

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

PCM 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.

PCM's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, PCM's Interest Expense was $-9 Mil. Its Operating Income was $41 Mil. And its Long-Term Debt & Capital Lease Obligation was $30 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2018 )	/	Interest Expense (A: Dec. 2018 )
	=	-1	*	40.746	/	-9.486
	=	4.30

PCM's Interest Coverage for the quarter that ended in Jun. 2019 is calculated as

Here, for the three months ended in Jun. 2019, PCM's Interest Expense was $-2 Mil. Its Operating Income was $13 Mil. And its Long-Term Debt & Capital Lease Obligation was $38 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2019 )	/	Interest Expense (Q: Jun. 2019 )
	=	-1	*	12.869	/	-2.293
	=	5.61

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

PCM (NAS:PCMI) 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 .

PCM Interest Coverage Related Terms

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

PCM (PCMI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » PCM Inc (NAS:PCMI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1940 East Mariposa Avenue, El Segundo, CA, USA, 90245

Website

http://www.pcm.com

PCM Inc provides IT products and solutions primarily to customers in the United States, Canada and in the Philippines. Products are sourced from vendors that include Adobe, Apple, Cisco, Dell, Hewlett-Packard Enterprise, HP Inc., Lenovo, Microsoft, Samsung, Symantec, and VMware. The business activities of the group are carried out through Commercial, Public Sector, United Kingdom and Canada segments. The Commercial segment sells products to commercial businesses; The Public segment sells products to federal, state and local governments and educational institutions; United Kingdom segment serve as a hub for the UK and the rest of Europe, whereas the Canada segment consists of sales made to customers in the Canadian market.

Executives

Thomas A Maloof	director	1940 E. MARIPOSA AVE, ATTN: BRANDON LAVERNE, EL SEGUNDO CA 90245
Paul C Heeschen	director	450 NEWPORT CENTER DRIVE STE 450 NEWPORT BEACH CA 92660
Robert I Newton	officer: EVP, General Counsel	1940 E. MARIPOSA AVE, ATTN: BRANDON LAVERNE, EL SEGUNDO CA 90245
Brandon H Laverne	officer: CFO	1940 E. MARIPOSA AVE., ATTN: BRANDON LAVERNE, EL SEGUNDO CA 90245
Joseph B Hayek	officer: President - PCM Sales, Inc.	200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
Mark T Mcgrath	officer: President	1940 E MARIPOSA AVE, EL SEGUNDO CA 90245
Boston Avenue Capital Llc	10 percent owner	15 EAST 5TH STREET, SUITE 3200, TULSA OK 74103
Mark C Layton	director	PFSWEB INC, 500 N CENTRAL EXPRESSWAY, PLANO TX 75074
Theodore R Sanders	officer: CFO	17150 SOUTH MARGAY AVENUE, CARSON CA 90746