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Paysafe Interest Coverage

: 0.72 (As of Jun. 2021)
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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. Paysafe's Operating Income for the three months ended in Jun. 2021 was $45.4 Mil. Paysafe's Interest Expense for the three months ended in Jun. 2021 was $-62.7 Mil. Paysafe's interest coverage for the quarter that ended in Jun. 2021 was 0.72. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Paysafe Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

NYSE:PSFE' s Interest Coverage Range Over the Past 10 Years
Min: 0.17   Med: 1.06   Max: 1.08
Current: 0.17

0.17
1.08

NYSE:PSFE's Interest Coverage is ranked lower than
99.99% of the 236 Companies
in the Software industry.

( Industry Median: 90.30 vs. NYSE:PSFE: 0.17 )

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


Paysafe Interest Coverage Historical Data

The historical data trend for Paysafe'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.

* Premium members only.

Paysafe Annual Data
Trend Dec18 Dec19 Dec20
Interest Coverage
1.06 1.08 0.95

Paysafe Quarterly Data
Dec18 Dec19 Mar20 Jun20 Dec20 Mar21 Jun21
Interest Coverage Premium Member Only Premium Member Only 1.13 1.01 N/A - 0.72

Competitive Comparison

For the Information Technology Services subindustry, Paysafe'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.

   

Paysafe Interest Coverage Distribution

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

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



Paysafe 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.


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

Paysafe's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Paysafe's Interest Expense was $-166.3 Mil. Its Operating Income was $157.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,281.4 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*157.603/-166.342
=0.95

Paysafe's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, Paysafe's Interest Expense was $-62.7 Mil. Its Operating Income was $45.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,145.4 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*45.414/-62.65
=0.72

* 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.


Paysafe  (NYSE:PSFE) 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 .


Paysafe Interest Coverage Related Terms

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


Paysafe Business Description

Paysafe logo
Industry
Technology » Software NAICS : 541513 SIC : 7376
Comparable Companies
Traded in Other Exchanges
Address
25 Canada Square, 27th Floor, London, GBR, E14 5LQ
Paysafe Ltd is an integrated payments platform. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through capabilities in payment processing, digital wallet, and online cash solutions. The company provides payment solutions through three primary lines of business: Integrated Processing, Digital Wallet, and eCash Solutions. It derives a majority of revenue from the USA followed by Germany, the UK, and all other countries.

Paysafe Headlines

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