Black Knight (Black Knight) Interest Coverage : 2.30 (As of Sep. 2023)

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What is Black Knight 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. Black Knight's Operating Income for the three months ended in Sep. 2023 was $62 Mil. Black Knight's Interest Expense for the three months ended in Sep. 2023 was $-27 Mil. Black Knight's interest coverage for the quarter that ended in Sep. 2023 was 2.30. The higher the ratio, the stronger the company's financial strength is.

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

BKI' s Interest Coverage Range Over the Past 10 Years
Min: 1.15 Med: 4.22 Max: 5.43
Current: 2.19

BKI's Interest Coverage is not ranked
in the Software industry.
Industry Median: 28.9 vs BKI: 2.19

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

Black Knight Interest Coverage Historical Data

The historical data trend for Black Knight'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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Black Knight Interest Coverage Chart

Black Knight Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

Get a 7-Day Free Trial

5.25

4.65

4.74

3.78

3.08

Black Knight Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial															3.11	1.47	2.87	2.16	2.30

Competitive Comparison of Black Knight's Interest Coverage

For the Software - Application subindustry, Black Knight'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.

Black Knight's Interest Coverage Distribution in the Software Industry

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

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

Black Knight 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.

Black Knight's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Black Knight's Interest Expense was $-101 Mil. Its Operating Income was $310 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,639 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	310	/	-100.6
	=	3.08

Black Knight's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Black Knight's Interest Expense was $-27 Mil. Its Operating Income was $62 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,002 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	62	/	-27
	=	2.30

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

Black Knight (NYSE:BKI) 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 .

Black Knight Interest Coverage Related Terms

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

Black Knight (Black Knight) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Black Knight Inc (NYSE:BKI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

601 Riverside Avenue, Jacksonville, FL, USA, 32204

Website

https://www.blackknightinc.com

Black Knight Inc is a technology company that, through its subsidiaries, provides software, data, and analytics solutions to the mortgage and consumer loan, real estate, and capital markets industry. The company's product portfolio includes software solutions to support loan origination, processing and servicing, and data and analytics solutions such as automated valuation models, data integration, risk assessment, among others. Black Knight's business is organized in two segments: software solutions and data/analytics. The majority of revenue comes from the company's software solutions segment, and most of the company's revenue is earned in the United States.

Executives

Joseph M Otting	director	C/O CIT GROUP INC., 1 CIT DRIVE, #3251-9, LIVINGSTON NJ 07039
Anthony M Jabbour	officer: Chief Executive Officer	601 RIVERSIDE AVE, JACKSONVILLE FL 32204
Michele M Meyers	officer: Chief Accounting Officer	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32207
John D Rood	director	3020 HARTLEY ROAD SUITE 300, JACKSONVILLE FL 32257
Catherine Levinson Burke	director	C/O NCR CORPORATION, 864 SPRING STREET NW, ATLANTA GA 30308
Michael L Gravelle	officer: Corp. Secretary & General Coun	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Kirk T Larsen	officer: Chief Financial Officer	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Foley William P Ii	director, officer: Chairman	FIDELITY NATIONAL FINANCIAL, INC., 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Richard N Massey	director	900 S. SHACKLEFORD ROAD, SUITE 401, LITTLE ROCK AR 72211
Nancy L. Shanik	director	CITIZENS FINANCIAL GROUP, INC., 600 WASHINGTON BLVD., CS119N, STAMFORD CT 06901
Shelley S Leonard	officer: Chief Product & Digital Ofcr	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Joseph M Nackashi	officer: President	LENDER PROCESSING SERVICES, INC., 601 RIVERSIDE AVE., JACKSONVILLE FL 32204
Anthony Orefice	officer: Chief Operating Officer	C/O BLACK KNIGHT FINANCIAL SERVICES, INC, 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Thomas J. Sanzone	officer: Chief Executive Officer	BLACK KNIGHT FINANCIAL SERVICES, INC., 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Thl Equity Fund Vi Investors (bkfs-lm), Llc	10 percent owner	C/O THOMAS H. LEE PARNTERS, L.P., 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110