Nasdaq (Nasdaq) Interest Coverage

: 4.54 (As of Dec. 2023)

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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. Nasdaq's Operating Income for the three months ended in Dec. 2023 was $481 Mil. Nasdaq's Interest Expense for the three months ended in Dec. 2023 was $-106 Mil. Nasdaq's interest coverage for the quarter that ended in Dec. 2023 was 4.54. The higher the ratio, the stronger the company's financial strength is.

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

NDAQ' s Interest Coverage Range Over the Past 10 Years
Min: 6.64 Med: 8.09 Max: 14.14
Current: 6.64

NDAQ's Interest Coverage is ranked worse than
62.22% of 450 companies
in the Capital Markets industry
Industry Median: 19.12 vs NDAQ: 6.64

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

Nasdaq Interest Coverage Historical Data

The historical data trend for Nasdaq'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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Nasdaq Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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9.44

14.14

13.56

13.84

6.64

Nasdaq Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															13.06	12.34	12.97	4.66	4.54

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Nasdaq'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.

Nasdaq Interest Coverage Distribution

For the Capital Markets industry and Financial Services sector, Nasdaq's Interest Coverage distribution charts can be found below:

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

Nasdaq 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.

Nasdaq's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Nasdaq's Interest Expense was $-272 Mil. Its Operating Income was $1,806 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,580 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1806	/	-272
	=	6.64

Nasdaq's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Nasdaq's Interest Expense was $-106 Mil. Its Operating Income was $481 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,580 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	481	/	-106
	=	4.54

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

Nasdaq (NAS:NDAQ) 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 .

Nasdaq Interest Coverage Related Terms

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

Nasdaq (Nasdaq) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Nasdaq Inc (NAS:NDAQ) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

NDAQ:Mexico NAQ:Germany NAQ:Germany NAQ:Germany N1DA34:Brazil NDAQ:Austria

Address

151 W. 42nd Street, New York, NY, USA, 10036

Website

https://www.nasdaq.com

Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its market-services business (about 35% of sales), the company sells and distributes market data as well as offers Nasdaq-branded indexes to asset managers and investors through its information-services segment (30%). Nasdaq's corporate-services business (20%) offers listing services and related investor relations products to publicly traded companies and through the company's market technology group (15%), Nasdaq facilitates the exchange operations of other exchanges throughout the world and provides financial compliance services.

Executives

Adenza Parent, Lp	director, 10 percent owner	ONE MARKET PLAZA, SPEAR TOWER, SUITE 2400, SAN FRANCISCO CA 94150
Spaht Paul Holden Jr.	director	600 MONTGOMERY STREET, 20TH FLOOR, SAN FRANCISCO CA 94111
Thoma Bravo Ugp, Llc	director, 10 percent owner	110 N. WACKER DRIVE, 32ND FLOOR, CHICAGO IL 60606
Ann M Dennison	officer: Controller and Prin Acctg Ofcr	ONE LIBERTY PLAZA, NEW YORK NY 10006
Johan Torgeby	director	151 W. 42ND STREET, NEW YORK NY 10036
Jeffery W Yabuki	director	255 FISERV DRIVE, BROOKFIELD WI 53045
Adena T Friedman	officer: Executive Vice President	1801 K STREET, N.W., WASHINGTON DC 20006
Michael R Splinter	director
Steven D Black	director	C/O JPMORGAN CHASE & CO., 270 PARK AVENUE, NEW YORK NY 10017
Bryan Everard Smith	officer: Executive Vice President	151 W. 42ND STREET, NEW YORK NY 10036
Michelle Lynn Daly	officer: Controller and Prin Acctg Ofcr	151 W. 42ND STREET, NEW YORK NY 10036
Brendan Brothers	officer: Interim Head of AFC	151 W. 42ND STREET, NEW YORK NY 10036
Jeremy Skule	officer: Executive Vice President	ONE LIBERTY PLAZA, NEW YORK MD 20850
Bradley J Peterson	officer: Executive Vice President	ONE LIBERTY PLAZA, NEW YORK NY 10006
Pc Nelson Griggs	officer: Executive Vice President	ONE LIBERTY PLAZA, NEW YORK NY 10006