GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Tech Data Corp (NAS:TECD) » Definitions » Interest Coverage

Tech Data (Tech Data) Interest Coverage : 6.09 (As of Apr. 2020)


View and export this data going back to 1986. Start your Free Trial

What is Tech Data 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. Tech Data's Operating Income for the three months ended in Apr. 2020 was $104 Mil. Tech Data's Interest Expense for the three months ended in Apr. 2020 was $-17 Mil. Tech Data's interest coverage for the quarter that ended in Apr. 2020 was 6.09. The higher the ratio, the stronger the company's financial strength is.

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


TECD's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 12.455
* 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.


Tech Data Interest Coverage Historical Data

The historical data trend for Tech Data'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.

Tech Data Interest Coverage Chart

Tech Data Annual Data
Trend Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.91 8.60 4.50 5.69 7.05

Tech Data Quarterly Data
Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20
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 Premium Member Only 3.95 6.19 6.90 12.84 6.09

Competitive Comparison of Tech Data's Interest Coverage

For the Electronics & Computer Distribution subindustry, Tech Data'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.


Tech Data's Interest Coverage Distribution in the Hardware Industry

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

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



Tech Data 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.

Tech Data's Interest Coverage for the fiscal year that ended in Jan. 2020 is calculated as

Here, for the fiscal year that ended in Jan. 2020, Tech Data's Interest Expense was $-86 Mil. Its Operating Income was $606 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,338 Mil.

Interest Coverage=-1* Operating Income (A: Jan. 2020 )/Interest Expense (A: Jan. 2020 )
=-1*606.336/-86.005
=7.05

Tech Data's Interest Coverage for the quarter that ended in Apr. 2020 is calculated as

Here, for the three months ended in Apr. 2020, Tech Data's Interest Expense was $-17 Mil. Its Operating Income was $104 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,338 Mil.

Interest Coverage=-1* Operating Income (Q: Apr. 2020 )/Interest Expense (Q: Apr. 2020 )
=-1*103.796/-17.034
=6.09

* 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.


Tech Data  (NAS:TECD) 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 .


Tech Data Interest Coverage Related Terms

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


Tech Data (Tech Data) Business Description

Traded in Other Exchanges
N/A
Address
5350 Tech Data Drive, Clearwater, FL, USA, 33760
Tech Data Corp is a wholesale distributor of technology products. It acts as an intermediary in the technology supply chain by bringing products from technology vendors to market and providing customers with logistics capabilities. The firm's customers include value-added resellers, direct marketers, retailers, and corporate resellers. Nearly half of its product mix is broadline products including notebooks, desktops, and printers; the rest includes data center, software, mobility, and consumer electronics products. More than half of the firm's revenue is generated in the Americas and the rest from Europe.
Executives
Karen M Dahut director 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Bridgette P Heller director TECH DATA CORPORATION, 5350 TECH DATA DRIVE, CLEARWATER FL 33760
Richard T Hume officer: Chief Executive Officer 5350 TECH DATA DRIVE, CLEARWATER FL 33760
Robert M Dutkowsky director JD EDWARDS & CO, ONE TECHNOLOGY WAY, DENVER CO 80237
Charles E Adair director
Thomas I Morgan director 30541 CARNEY CREEK ROAD, BIGFORK MT 59911
Savio Tung director 280 PARK AVE, 37TH FLR WEST TOWER, NEW YORK NY 10017
Kathy Misunas director
Patrick Zammit officer: President, Europe KOUTERVELDSTRAAT 20, DIEGEM C9 B-1831
Harczak Harry J Jr director C/O XA INVESTMENTS, 1290 BROADWAY STE 1100, DENVER CO 80203
Steven A Raymund director C/O TECH DATA CORP, 5350 TECH DATA DRIVE, CLEARWATER FL 33760
Murray N Wright officer: President, Americas 11126 MCCORMICK ROAD, HUNT VALLEY MD 21031
Kenneth T Lamneck officer: President, The Americas INSIGHT ENTERPRISES, INC., 6820 SOUTH HARL AVENUE, TEMPE AZ 85283
Sharon P Nadeau officer: Senior Vice President HR 6240 SEA HARBOR DR, ORLANDO FL 32821
James M Cracchiolo director

Tech Data (Tech Data) Headlines

From GuruFocus

10 Tech Data Leaders Named 2020 Women of the Channel by CRN

By Business Wire Business Wire 05-11-2020

Tech Data to Announce First Quarter Fiscal 2021 Results on May 28

By Business Wire Business Wire 05-20-2020