MeridianLink (MeridianLink) Interest Coverage

: 0.68 (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. MeridianLink's Operating Income for the three months ended in Dec. 2023 was $6.8 Mil. MeridianLink's Interest Expense for the three months ended in Dec. 2023 was $-10.0 Mil. MeridianLink's interest coverage for the quarter that ended in Dec. 2023 was 0.68. The higher the ratio, the stronger the company's financial strength is.

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

MLNK' s Interest Coverage Range Over the Past 10 Years
Min: 0.5 Med: 1.18 Max: 1.68
Current: 0.5

MLNK's Interest Coverage is ranked worse than
97.44% of 1602 companies
in the Software industry
Industry Median: 29.54 vs MLNK: 0.50

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

MeridianLink Interest Coverage Historical Data

The historical data trend for MeridianLink'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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MeridianLink Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.53

1.68

1.18

1.35

0.50

MeridianLink Quarterly Data
	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												0.30	0.51	0.24	0.57	0.68

Competitive Comparison

For the Software - Application subindustry, MeridianLink'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.

MeridianLink Interest Coverage Distribution

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

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

MeridianLink 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.

MeridianLink'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, MeridianLink's Interest Expense was $-38.2 Mil. Its Operating Income was $19.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $420.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	19.154	/	-38.158
	=	0.50

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

Here, for the three months ended in Dec. 2023, MeridianLink's Interest Expense was $-10.0 Mil. Its Operating Income was $6.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $420.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	6.785	/	-10.031
	=	0.68

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

MeridianLink (NYSE:MLNK) 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 .

MeridianLink Interest Coverage Related Terms

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

MeridianLink (MeridianLink) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » MeridianLink Inc (NYSE:MLNK) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

3560 Hyland Avenue, Suite 200, Costa Mesa, CA, USA, 92626

Website

https://www.meridianlink.com

MeridianLink Inc is a cloud-based software solution for financial institutions, including banks, credit unions, mortgage lenders, specialty lending providers, and consumer reporting agencies. It generates maximum revenue from Lending Software Solutions.

Executives

Sean W Blitchok	officer: Chief Financial Officer	MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Edward H Mcdermott	director	60 E. SIR FRANCIS DRAKE BLVD., SUITE 300, LARKSPUR CA 94939
Cowan Cody	director	MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Chris Maloof	officer: President, Go To Market	MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Mark Sachleben	director	C/O NEW RELIC, INC., 188 SPEAR STREET, STE. 1200, SAN FRANCISCO CA 94105
Duston Williams	director	C/O NUTANIX, INC., 1740 TECHNOLOGY DRIVE, SUITE 150, SAN JOSE CA 95110
Alan R. Arnold	officer: Chief Operating Officer	MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Yael Zheng	director	345 ENCINAL STREET, SANTA CRUZ CA 95060
Reema Poddar	director	1600 SUNFLOWER AVENUE, #200, COSTA MESA CA 92626
Timothy Nguyen	director, officer: Chief Strategy Officer	PROJECT ANGEL PARENT, LLC, 1600 SUNFLOWER AVENUE, SUITE #200, COSTA MESA CA 92626
Paul Andrew Zuber	director	C/O HOULIHAN LOKEY, INC., 10250 CONSTELLATION BLVD., 5TH FLOOR, LOS ANGELES CA 90067
Nicolaas Vlok	director, officer: Chief Executive Officer	MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Chad H. Martin	officer: Chief Financial Officer	MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Thoma Bravo Discover Fund Ii, L.p.	10 percent owner	300 NORTH LASALLE STREET, SUITE 4350, CHICAGO IL 60654
Arthur J. Rohde	director	PROJECT ANGEL PARENT, LLC, 1600 SUNFLOWER AVENUE, SUITE #200, COSTA MESA CA 92626