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Evertec (Evertec) Interest Coverage

: 1.42 (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. Evertec's Operating Income for the three months ended in Dec. 2023 was $21.7 Mil. Evertec's Interest Expense for the three months ended in Dec. 2023 was $-15.3 Mil. Evertec's interest coverage for the quarter that ended in Dec. 2023 was 1.42. The higher the ratio, the stronger the company's financial strength is.

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

EVTC' s Interest Coverage Range Over the Past 10 Years
Min: 2.88   Med: 4.31   Max: 8.62
Current: 4.21


EVTC's Interest Coverage is ranked worse than
80.79% of 1603 companies
in the Software industry
Industry Median: 29.52 vs EVTC: 4.21

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


Evertec Interest Coverage Historical Data

The historical data trend for Evertec'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.

Evertec Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.02 5.64 8.62 6.35 4.21

Evertec Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 6.26 7.10 6.17 6.93 1.42

Competitive Comparison

For the Software - Infrastructure subindustry, Evertec'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.


Evertec Interest Coverage Distribution

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

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



Evertec 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.

Evertec'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, Evertec's Interest Expense was $-32.3 Mil. Its Operating Income was $136.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $955.8 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*136.16/-32.321
=4.21

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

Here, for the three months ended in Dec. 2023, Evertec's Interest Expense was $-15.3 Mil. Its Operating Income was $21.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $955.8 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*21.735/-15.329
=1.42

* 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.


Evertec  (NYSE:EVTC) 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 .


Evertec Interest Coverage Related Terms

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


Evertec (Evertec) Business Description

Traded in Other Exchanges
Address
Cupey Center Building, Road 176, Kilometer 1.3, San Juan, PRI, 00926
Evertec Inc is a transaction processing business in Latin America and the Caribbean. Its business segments are Merchant Acquiring, Payment Services - Puerto Rico & Caribbean, Payment Services - Latin America, and Business Solutions. The company serves a diversified customer base of financial institutions, merchants, corporations and government agencies with mission-critical technology solutions that enable them to issue, process and accept transactions securely. The company derives revenue based on transaction or discount fees or fees based on the number of accounts on file.
Executives
Diego Viglianco officer: EVP & Chief Operating Officer PO BOX 364527, SAN JUAN PR 00936
Paola Perez-surillo officer: Senior Vice President PO BOX 364527, SAN JUAN PR 00936-4527
Virginia Gambale director C/O JETBLUE AIRWAYS CORP., 27-01 QUEENS PLAZA NORTH, LONG ISLAND CITY NY 11101
Joaquin A. Castrillo-salgado officer: Vice President of Finance PO BOX 364527, SAN JUAN PR 00936-4527
Luis A Rodriguez-gonzalez officer: General Counsel & Secretary PO BOX 364527, SAN JUAN PR 00936-4527
Morgan M Schuessler director, officer: President & CEO PO BOX 364527, SAN JUAN PR 00936-4527
Popular Inc 10 percent owner P.O. BOX 362708, SAN JUAN PR 00936-2708
Guillermo Rospigliosi officer: Executive Vice President PO BOX 364527, SAN JUAN PR 00936-4527
Castillo Rodrigo Del officer: Executive Vice President PO BOX 364527, SAN JUAN PR 00936-4527
Kelly Hefner Barrett director 4630 WYNMEADE PARK, MARIETTA GA 30067
Philip E. Steurer officer: Chief Operating Officer PO BOX 364527, SAN JUAN PR 00936-4527
Miguel Vizcarrondo officer: Executive Vice President PO BOX 364527, SAN JUAN PR 00936-4527
Frank D. D'angelo director PO BOX 364527, SAN JUAN PR 00936-4527
Carlos J. Ramirez officer: Executive Vice President PO BOX 364527, SAN JUAN PR 00936-4527
Ivan Pagan director PO BOX 364527, SAN JUAN PR 00936-4527

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