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Presidio (Presidio) Interest Coverage : 3.84 (As of Sep. 2019)


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What is Presidio 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. Presidio's Operating Income for the three months ended in Sep. 2019 was $45 Mil. Presidio's Interest Expense for the three months ended in Sep. 2019 was $-12 Mil. Presidio's interest coverage for the quarter that ended in Sep. 2019 was 3.84. The higher the ratio, the stronger the company's financial strength is.

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


PSDO's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 29.505
* 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.


Presidio Interest Coverage Historical Data

The historical data trend for Presidio'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.

* Premium members only.

Presidio Interest Coverage Chart

Presidio Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19
Interest Coverage
Get a 7-Day Free Trial N/A 1.21 1.51 2.49 2.03

Presidio Quarterly Data
Jun14 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
Interest Coverage Get a 7-Day Free Trial 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 2.81 1.64 1.54 2.26 3.84

Competitive Comparison of Presidio's Interest Coverage

For the Information Technology Services subindustry, Presidio'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.


Presidio's Interest Coverage Distribution in the Software Industry

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

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



Presidio 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.

Presidio's Interest Coverage for the fiscal year that ended in Jun. 2019 is calculated as

Here, for the fiscal year that ended in Jun. 2019, Presidio's Interest Expense was $-50 Mil. Its Operating Income was $102 Mil. And its Long-Term Debt & Capital Lease Obligation was $734 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2019 )/Interest Expense (A: Jun. 2019 )
=-1*101.5/-49.9
=2.03

Presidio's Interest Coverage for the quarter that ended in Sep. 2019 is calculated as

Here, for the three months ended in Sep. 2019, Presidio's Interest Expense was $-12 Mil. Its Operating Income was $45 Mil. And its Long-Term Debt & Capital Lease Obligation was $725 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2019 )/Interest Expense (Q: Sep. 2019 )
=-1*44.5/-11.6
=3.84

* 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.


Presidio  (NAS:PSDO) 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 .


Presidio Interest Coverage Related Terms

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


Presidio (Presidio) Business Description

Traded in Other Exchanges
N/A
Address
One Penn Plaza, Suite 2832, New York, NY, USA, 10119
Presidio Inc is an information technology company based in the United States. Its services are rendered through three divisions, Digital Infrastructure, Cloud and Security solutions. Its solutions include advanced networking, IoT, data analytics, data center modernization, hybrid and multi-cloud, cyber risk management and enterprise mobility.
Executives
Pankaj Patel director 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Apollo Management Holdings Gp, Llc 10 percent owner 9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Apollo Management Holdings, L.p. 10 percent owner 9 W. 57TH STREET, NEW YORK NY 10019
Apollo Management, L.p. 10 percent owner 2 MANHATTANVILLE ROAD, SUITE 203, PURCHASE NY 10577
Apollo Management Gp, Llc 10 percent owner TWO MANHATTANVILLE ROAD, SUITE 203, PURCHASE NY 10577
Aif Viii Management, Llc 10 percent owner 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Apollo Management Viii, L.p. 10 percent owner 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Giovanni Visentin director C/O HEWLETT-PACKARD COMPANY, 3000 HANOVER STREET, PALO ALTO CA 94304
Matt Nord director C/O APOLLO MANAGEMENT, L.P., 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Paul D Fletcher officer: See Remarks