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PTC (NAS:PTC) Interest Coverage

: 3.34 (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. PTC's Operating Income for the three months ended in Dec. 2023 was $118 Mil. PTC's Interest Expense for the three months ended in Dec. 2023 was $-35 Mil. PTC's interest coverage for the quarter that ended in Dec. 2023 was 3.34. The higher the ratio, the stronger the company's financial strength is.

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

PTC' s Interest Coverage Range Over the Past 10 Years
Min: 1.17   Med: 3.37   Max: 27.59
Current: 3.18


PTC's Interest Coverage is ranked worse than
85.45% of 1588 companies
in the Software industry
Industry Median: 31.685 vs PTC: 3.18

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


PTC Interest Coverage Historical Data

The historical data trend for PTC'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.

PTC Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.65 3.19 7.59 8.82 3.54

PTC Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.39 2.95 3.07 3.39 3.34

Competitive Comparison

For the Software - Application subindustry, PTC'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.


PTC Interest Coverage Distribution

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

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



PTC 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.

PTC's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, PTC's Interest Expense was $-129 Mil. Its Operating Income was $458 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,855 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2023 )/Interest Expense (A: Sep. 2023 )
=-1*458.014/-129.417
=3.54

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

Here, for the three months ended in Dec. 2023, PTC's Interest Expense was $-35 Mil. Its Operating Income was $118 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,415 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*117.918/-35.334
=3.34

* 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.


PTC  (NAS:PTC) 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 .


PTC Interest Coverage Related Terms

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


PTC (NAS:PTC) Business Description

Traded in Other Exchanges
Address
121 Seaport Boulevard, Boston, MA, USA, 02210
PTC offers high-end computer-assisted design (Creo) and product lifecycle management (Windchill) software as well as Internet of Things and AR industrial solutions. Founded in 1985, PTC has 28,000 customers, with revenue stemming mostly from North America (45%) and Europe (40%).
Executives
Robert Schechter director C/O NMS COMMUNICATIONS, 100 CROSSING BLVD, FRAMINGHAM MA 01702
Kristian Talvitie officer: Chief Financial Officer 121 SEAPORT BOULEVARD, BOSTON MA 02210
Michael Ditullio officer: EVP 121 SEAPORT BLVD, BOSTON MA 02210
Von Staats Aaron C officer: SVP, General Counsel and Clerk C/O PARAMETRIC TECHNOLOGY CORP, 140 KENDRICK ST, NEEDHAM MA 02494
Catherine Kniker officer: Chief Strategy Officer C/O 121 SEAPORT BOULEVARD, BOSTON MA 02210
Paul A Lacy director KRONOS INCORP, 297 BILLERICA RD, CHELMSFORD MA 01824
Lathan Corinna director 140 KENDRICK STREET, NEEDHAM MA 02494
Blake D. Moret director C/O ROCKWELL AUTOMATION, INC., 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Neil Barua director, officer: CEO-Elect C/O SERVICEMAX, INC., 4450 ROSEWOOD DRIVE #200, PLEASANTON CA 94588
Janesh Moorjani director C/O ELASTIC N.V., 800 WEST EL CAMINO REAL, SUITE 350, MOUNTAIN VIEW CA 94040
Michal Katz director 42 ROCK SHELTER ROAD, WACCABUC NY 10597
James E Heppelmann officer: EVP, Chief Product Officer C/O PARAMETRIC TECHNOLOGY CORP, 140 KENDRICK ST., NEEDHAM MA 02494
Amarpreet Hanspal director AUTODESK, INC., 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Phillip M Fernandez director C/O MARKETO, INC., 901 MARINER'S ISLAND BLVD., SUITE 500, SAN MATEO CA 94404
Mark D Benjamin director NUANCE COMMUNICATIONS, INC., 1 WAYSIDE ROAD, BURLINGTON MA 01803