Datto Holding (Datto Holding) Interest Coverage

: 65.98 (As of Mar. 2022)

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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. Datto Holding's Operating Income for the three months ended in Mar. 2022 was $8.0 Mil. Datto Holding's Interest Expense for the three months ended in Mar. 2022 was $-0.1 Mil. Datto Holding's interest coverage for the quarter that ended in Mar. 2022 was 65.98. The higher the ratio, the stronger the company's financial strength is.

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

MSP's Interest Coverage is not ranked ^*
in the Software industry.
Industry Median: 29.54
* 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.

Datto Holding Interest Coverage Historical Data

The historical data trend for Datto Holding'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.

Datto Holding Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Interest Coverage

0.15

0.67

2.41

136.71

Datto Holding Quarterly Data
	Dec18	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22
Interest Coverage	Get a 7-Day Free Trial							203.56	93.01	101.06	427.23	65.98

Competitive Comparison

For the Software - Infrastructure subindustry, Datto Holding'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.

Datto Holding Interest Coverage Distribution

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

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

Datto Holding 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.

Datto Holding's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Datto Holding's Interest Expense was $-0.5 Mil. Its Operating Income was $62.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $31.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2021 )	/	Interest Expense (A: Dec. 2021 )
	=	-1	*	62.204	/	-0.455
	=	136.71

Datto Holding's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the three months ended in Mar. 2022, Datto Holding's Interest Expense was $-0.1 Mil. Its Operating Income was $8.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $30.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2022 )	/	Interest Expense (Q: Mar. 2022 )
	=	-1	*	8.049	/	-0.122
	=	65.98

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

Datto Holding (NYSE:MSP) 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 .

Datto Holding Interest Coverage Related Terms

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Datto Holding (Datto Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Datto Holding Corp (NYSE:MSP) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

101 Merritt 7, Norwalk, CT, USA, 06851

Website

https://www.datto.com

Datto Holding Corp is engaged in providing cloud-based software and technology solutions. Its platform enables partners to manage and grow their businesses serving the small and medium businesses information technology, or SMB IT, market. The company's cloud-based platform offerings include Unified Continuity, Networking and Business Management software solutions.

Executives

Emily T Epstein	officer: General Counsel	101 MERRITT 7, NORWALK CT 06851
John Abbot	officer: Chief Financial Officer
Robert Raymond Petrocelli	officer: Chief Technology Officer	101 MERRITT 7 NORWALK CT 06851
Christopher Edward Mccloskey	officer: Chief Customer Officer	101 MERRITT 7 NORWALK CT 06851
Radhesh Balakrishnan Menon	officer: Chief Product Officer	101 MERRITT 7 NORWALK CT 06851
William Severance	officer: Chief Accounting Officer	44 E BROADWAY BLVD, SUITE 350, TUCSON AZ 85701
Sanjay Kumar Singh	officer: Chief Revenue Officer	101 MERRITT 7 NORWALK CT 06851
Austin Williams Mcchord	director, 10 percent owner	101 MERRITT 7 NORWALK CT 06851
Timothy Weller	director, officer: Chief Executive Officer	101 MERRITT 7 NORWALK CT 06851
Michael Glenn Fass	officer: See Remarks	101 MERRITT 7 NORWALK CT 06851
Adrian T Dillon	director	5301 STEVENS CREEK BLVD, MS 1A-LC, SANTA CLARA CA 95051
Jack K Dillon	director	101 MERRITT 7 NORWALK CT 06851
Christine E Larsen	director	C/O FIRST DATA CORPORATION, FIRST DATA, 225 LIBERTY STREET, NEW YORK NY 10281
Vff Ii Gp (cayman), Ltd.	10 percent owner	4 EMBARCADERO CENTER, 20TH FLOOR SAN FRANCISCO CA 94111
Marc Evan Brown	director	C/O RAPID7, INC., 100 SUMMER STREET, BOSTON MA 02110