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CPI Card Group Interest Coverage

: 2.33 (As of Sep. 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. CPI Card Group's Operating Income for the three months ended in Sep. 2021 was $16.7 Mil. CPI Card Group's Interest Expense for the three months ended in Sep. 2021 was $-7.2 Mil. CPI Card Group's interest coverage for the quarter that ended in Sep. 2021 was 2.33. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. CPI Card Group Inc interest coverage is 2.13, which is low.

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

NAS:PMTS' s Interest Coverage Range Over the Past 10 Years
Min: 0.2   Med: 2.46   Max: 4.59
Current: 2.13

0.2
4.59

NAS:PMTS's Interest Coverage is ranked lower than
90% of the 189 Companies
in the Credit Services industry.

( Industry Median: 106.31 vs. NAS:PMTS: 2.13 )

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


CPI Card Group Interest Coverage Historical Data

The historical data trend for CPI Card Group'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.

* Premium members only.

CPI Card Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.58 - 0.20 0.75 1.51

CPI Card Group Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 2.14 1.99 1.98 2.24 2.33

Competitive Comparison

For the Credit Services subindustry, CPI Card Group'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.

   

CPI Card Group Interest Coverage Distribution

For the Credit Services industry and Financial Services sector, CPI Card Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where CPI Card Group's Interest Coverage falls into.



CPI Card Group 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.

CPI Card Group'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, CPI Card Group's Interest Expense was $-25.4 Mil. Its Operating Income was $38.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $328.7 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*38.391/-25.397
=1.51

CPI Card Group's Interest Coverage for the quarter that ended in Sep. 2021 is calculated as

Here, for the three months ended in Sep. 2021, CPI Card Group's Interest Expense was $-7.2 Mil. Its Operating Income was $16.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $303.3 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*16.702/-7.183
=2.33

* 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.


CPI Card Group  (NAS:PMTS) 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 .


CPI Card Group Interest Coverage Related Terms

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


CPI Card Group Business Description

CPI Card Group logo
Industry
Financial Services » Credit Services NAICS : 522220 SIC : 6153
Traded in Other Exchanges
Address
10368 West Centennial Road, Littleton, CO, USA, 80127
CPI Card Group Inc is a payment technology company engaged in providing financial payment card solutions and services. It offers credit, debit and prepaid cards. The business segments of the group are Debit and Credit, which produces Financial Payment Cards and provides integrated card services to card-issuing banks primarily in the United States, and Prepaid Debit, which provides integrated card services to Prepaid Debit Card program managers primarily in the United States. It derives key revenue from the Debit and Credit segment.
Executives
Scheirman Scott director, officer: President & CEO THE WESTERN UNION COMPANY 12500 EAST BELFORD AVENUE ENGLEWOOD CO 80112
Dubin Lane officer: SVP & GM of Pers., Ppd. & Iss. C/O CPI CARD GROUP INC. 10368 WEST CENTENNIAL RD. LITTLETON IL 80127
Kilgore Sarah officer: Chief Legal & Compliance Off. C/O CPI CARD GROUP, INC. 10026 WEST SAN JUAN WAY LITTLETON CO 80127
Lowe John Daniel officer: CFO C/O CPI CARD GROUP 10026 W. SAN JUAN WAY, SUITE 200 LITTLETON CO 80127
Dimaggio Guy officer: SVP and GM of Secure Card C/O CPI CARD GROUP INC. 10026 WEST SAN JUAN WAY LITTLETON CO 80127
Frasier Loretta G officer: Chief Human Resources Officer C/O CPI CARD GROUP INC. 10026 W. SAN JUAN WAY LITTLETON CO 80127
Williams Sarah Elizabeth officer: Chief Technology Officer C/O CPI CARD GROUP INC. 10026 W. SAN JUAN WAY LITTLETON CO 80127
Sheinbaum Marc director 24 DEERFIELD ROAD CHAPPAQUA NY 10514
Peters Nicholas A director 10368 WEST CENTENNIAL RD. LITTLETON CO 80127
Pearce Robert director 10368 WEST CENTENNIAL RD. LITTLETON CO 80127
Pearce Douglas director C/O CPI CARD GROUP INC. 10026 WEST SAN JUAN WAY LITTLETON CO 80127
Soranno Keating Valerie director C/O CPI CARD GROUP INC. 10026 WEST SAN JUAN WAY LITTLETON CO 80127
Jacoba Lisa officer: Chief Human Resources Officer 10368 WEST CENTENNIAL RD. LITTLETON CO 80127
Bohrer Jason officer: GM & SVP Secure Card C/O CPI CARD GROUP INC. 10368 WEST CENTENNIAL ROAD LITTLETON CO 80127
Tavares Silvio director 20 TIPTOE LANE BURLINGAME CA 94010

CPI Card Group Headlines

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