SWK Holdings (SWK Holdings) Interest Coverage : 3.16 (As of Dec. 2023)

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What is SWK 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. SWK Holdings's Operating Income for the three months ended in Dec. 2023 was $3.56 Mil. SWK Holdings's Interest Expense for the three months ended in Dec. 2023 was $-1.13 Mil. SWK Holdings's interest coverage for the quarter that ended in Dec. 2023 was 3.16. The higher the ratio, the stronger the company's financial strength is.

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

SWKH' s Interest Coverage Range Over the Past 10 Years
Min: 10.06 Med: 44.92 Max: No Debt
Current: 10.06

SWKH's Interest Coverage is ranked worse than
63.84% of 448 companies
in the Asset Management industry
Industry Median: 38 vs SWKH: 10.06

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

SWK Holdings Interest Coverage Historical Data

The historical data trend for SWK 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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SWK Holdings Interest Coverage Chart

SWK Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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44.31

21.55

83.23

45.52

10.06

SWK Holdings Quarterly Data
	Mar19	Jun19	Sep19	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															14.85	30.24	13.87	25.58	3.16

Competitive Comparison of SWK Holdings's Interest Coverage

For the Asset Management subindustry, SWK 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.

SWK Holdings's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, SWK Holdings's Interest Coverage distribution charts can be found below:

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

SWK 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.

SWK 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, SWK Holdings's Interest Expense was $-1.85 Mil. Its Operating Income was $18.60 Mil. And its Long-Term Debt & Capital Lease Obligation was $43.13 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	18.603	/	-1.849
	=	10.06

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

Here, for the three months ended in Dec. 2023, SWK Holdings's Interest Expense was $-1.13 Mil. Its Operating Income was $3.56 Mil. And its Long-Term Debt & Capital Lease Obligation was $43.13 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	3.561	/	-1.128
	=	3.16

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

SWK Holdings (NAS:SWKH) 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 .

SWK Holdings Interest Coverage Related Terms

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

SWK Holdings (SWK Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » SWK Holdings Corp (NAS:SWKH) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

14755 Preston Road, Suite 105, Dallas, TX, USA, 75254

Website

https://www.swkhold.com

SWK Holdings Corp is a healthcare capital provider. The company offers financing solutions to various life science companies, institutions, and inventors. It involves monetizing cash flow streams derived from commercial-stage products and related intellectual property through royalty purchases and financings, as well as through the creation of synthetic revenue interests in commercialized products. Through its wholly-owned subsidiary, it also provides non-discretionary investment advisory services to institutional clients. The company's operating segments are Finance Receivables and Pharmaceutical Development Services. It generates maximum revenue from the Finance Receivables segment.

Executives

Jerry Albright	director	C/O SWK HOLDINGS CORP, 14755 PRESTON ROAD, SUITE 105, DALLAS TX 75254
Yvette M Heinrichson	officer: Chief Financial Officer	14755 PRESTON ROAD, SUITE 105, DALLAS TX 75254
Staggs Joe David Jr	officer: PRESIDENT	14755 PRESTON ROAD, SUITE 105, DALLAS TX 75254
Marcus Edward Pennington	director	2100 MCKINNEY AVENUE, SUITE 1800, DALLAS TX 75201
Wendy F Dicicco	director
Robert K. Hatcher	director	2929 ALLEN PARKWAY, SUITE 3000, HOUSTON TX 77019
Laurie L. Dotter	director	3615 WEST LAWTHER DRIVE, DALLAS TX 75214
Black Winston L Iii	officer: Chief Executive Officer	14755 PRESTON ROAD, SUITE 105, DALLAS TX 75254
Fletcher Aaron G.l.	director	40 GUEST STREET, BOSTON MA 02135
Carlson Capital L P	director, 10 percent owner, other: See Remarks	2100 MCKINNEY AVE, STE 1900, DALLAS TX 75201
Dana Blair Baker	director	200 CRESCENT COURT, SUITE 1450, DALLAS TX 75201
James Brett Pope	director, officer: CEO	4020 SAHARA CT., CARROLLTON TX 75010
Edward B Stead	director	14755 PRESTON ROAD, SUITE 105, DALLAS TX 75254
Christopher W Haga	director	PO BOX 10809, DAYTONA BEACH FL 32120
Black Diamond Offshore Ltd.	director, 10 percent owner, other: See Remarks	CITCO FUND SERVICES, 89 NEXUS WAY, P.O. BOX 31106, GRAND CAYMAN E9 KY1-1205