HRT (HireRight Holdings) Interest Coverage : 0.43 (As of Mar. 2024)

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What is HireRight Holdings 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. HireRight Holdings's Operating Income for the three months ended in Mar. 2024 was $7.7 Mil. HireRight Holdings's Interest Expense for the three months ended in Mar. 2024 was $-17.7 Mil. HireRight Holdings's interest coverage for the quarter that ended in Mar. 2024 was 0.43. The higher the ratio, the stronger the company's financial strength is.

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

HRT's Interest Coverage is not ranked ^*
in the Business Services industry.
Industry Median: 13.32
* 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.

HireRight Holdings Interest Coverage Historical Data

The historical data trend for HireRight Holdings'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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HireRight Holdings Interest Coverage Chart

HireRight Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.49

0.76

3.05

0.87

HireRight Holdings Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial												-	1.38	1.17	0.76	0.43

Competitive Comparison of HireRight Holdings's Interest Coverage

For the Staffing & Employment Services subindustry, HireRight Holdings'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.

HireRight Holdings's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, HireRight Holdings's Interest Coverage distribution charts can be found below:

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

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HireRight Holdings 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.

HireRight Holdings'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, HireRight Holdings's Interest Expense was $-64.7 Mil. Its Operating Income was $56.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $726.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	56.076	/	-64.722
	=	0.87

HireRight Holdings's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, HireRight Holdings's Interest Expense was $-17.7 Mil. Its Operating Income was $7.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $723.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	7.657	/	-17.726
	=	0.43

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

HireRight Holdings (NYSE:HRT) 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 .

HireRight Holdings Interest Coverage Related Terms

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

HireRight Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » HireRight Holdings Corp (NYSE:HRT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

100 Centerview Drive, Suite 300, Nashville, TN, USA, 37214

Website

https://www.hireright.com

HireRight Holdings Corp is a global provider of technology-driven workforce risk management and compliance solutions. It provides comprehensive background screening, verification, identification, monitoring, and drug and health screening services. It offers services via a unified global software and data platform that tightly integrates into its customers' human capital management (HCM) systems enabling effective and efficient workflows for workforce hiring, onboarding, and monitoring. The company's revenues is derived from contracts to provide services. Majority of the revenue is generated from United States.

Executives

Mary O'loughlin	officer: EVP, North America	100 CENTERVIEW DRIVE, SUITE 300, NASHVILLE TN 37214
Michael E Ensor	officer: SVP, Global Head of Operations	100 CENTERVIEW DRIVE, SUITE 300, NASHVILLE TN 37214
James R Daxner	officer: EVP, Global Head of Product	100 CENTERVIEW DRIVE, SUITE 300, NASHVILLE TN 37214
James Laplaine	director	100 CENTERVIEW DR,, NASHVILLE TN 37214
Lisa L Troe	director	12181 BLUFF CREEK DRIVE, 4TH FLOOR, LOS ANGELES CA 90094
Rjc Gis Holdings Llc	10 percent owner	401 QUAY COMMONS UNIT 1801, SARASOTA FL 34236
Venkat Bhamidipati	director	6220 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Lawrence M Kutscher	director	ONE DIAMOND HILL RD, MURRAY HILL NJ 07974
Jeanne S. Conrad	10 percent owner	401 QUAY COMMONS UNIT 1801, SARASOTA FL 34236
Raymond W. Conrad	10 percent owner	401 QUAY COMMONS UNIT 1801, SARASOTA FL 34236
General Atlantic, L.p.	director, 10 percent owner	55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Genpar (bermuda), L.p.	director, 10 percent owner	C/O GENERAL ATLANTIC SERVICE COMPANY,LLC, 55 EAST 52ND ST. 32ND FLOOR, NEW YORK NY 10055
General Atlantic Partners (bermuda) Hrg Ii, L.p.	director, 10 percent owner	C/O CONYERS CLIENT SERVICES LIMITED, CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
General Atlantic (spv) Gp (bermuda), Llc	director, 10 percent owner	C/O CONYERS CLIENT SERVICES LIMITED, CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Gap (bermuda) L.p.	director, 10 percent owner	C/O GENERAL ATLANTIC SERVICE COMPANY, 55 EAST 52ND ST. 32ND FLOOR, NEW YORK NY 10055