Resources Connection (NAS:RGP) Interest Coverage

: 0 (At Loss) (As of May. 2023)

View and export this data going back to 2000. Start your Free Trial

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. Resources Connection's Operating Income for the three months ended in May. 2023 was $17.0 Mil. Resources Connection's Interest Expense for the three months ended in May. 2023 was $0.1 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Resources Connection Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

RGP' s Interest Coverage Range Over the Past 10 Years
Min: 14.35 Med: 66.56 Max: No Debt
Current: 137.22

RGP's Interest Coverage is ranked better than
78.62% of 795 companies
in the Business Services industry
Industry Median: 15.00 vs RGP: 137.22

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

Resources Connection Interest Coverage Historical Data

The historical data trend for Resources Connection'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.

Resources Connection Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Interest Coverage

22.90

17.78

14.35

78.42

137.22

Resources Connection Quarterly Data
	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23
Interest Coverage																87.93	79.56	117.97	68.54	-

Competitive Comparison

For the Consulting Services subindustry, Resources Connection'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.

Annual Data Quarterly Data

Resources Connection Interest Coverage Distribution

For the Business Services industry and Industrials sector, Resources Connection's Interest Coverage distribution charts can be found below:

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

Resources Connection 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.

Resources Connection's Interest Coverage for the fiscal year that ended in May. 2023 is calculated as

Here, for the fiscal year that ended in May. 2023, Resources Connection's Interest Expense was $-0.6 Mil. Its Operating Income was $75.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $10.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: May. 2023 )	/	Interest Expense (A: May. 2023 )
	=	-1	*	75.743	/	-0.552
	=	137.22

Resources Connection's Interest Coverage for the quarter that ended in May. 2023 is calculated as

Here, for the three months ended in May. 2023, Resources Connection's Interest Expense was $0.1 Mil. Its Operating Income was $17.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $10.3 Mil.

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

Resources Connection (NAS:RGP) 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 .

Resources Connection Interest Coverage Related Terms

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

Resources Connection (NAS:RGP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Resources Connection Inc (NAS:RGP) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RCO:Germany

Address

17101 Armstrong Avenue, Suite 100, Irvine, CA, USA, 92614

Website

https://www.rgp.com

Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals. It has two segments RGP ( Resources Global Professionals.) and Other segments. The company offers transformation and improvement, financial reporting and analysis, strategy development, and program and project management services and support. Its clients operate in the accounting, finance, corporate governance, risk and compliance management, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, and legal and regulatory sectors.

Executives

Susan Collyns	director	6053 W CENTURY BLVD STE 1100, C/O CALIFORNIA PIZZA KITCHEN INC, LOS ANGLES CA 90045-6430
David P White	director	17101 ARMSTRONG AVE., STE 100, IRVINE CA 92614
Lisa Pierozzi	director	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Timothy L Brackney	officer: President and COO	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Jennifer Y Ryu	officer: Interim CFO	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Kate W Duchene	officer: President & CEO	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Michael H Wargotz	director	AXCESS WORLDWIDE, 515 MADISON AVE., 15TH FLOOR, NEW YORK NY 10022
Anne Shih	director	17101 ARMSTRONG AVENUE, IRVINE CA 92614
Maltzan Marco Von	director	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Herbert M Mueller	officer: CFO & EVP
Susan J Crawford	director	17101 ARMSTRONG AVE, IRVINE CA 92614
Tracy B Stephens	officer: EVP & COO	360 WESTMINSTER, HOUSTON TX 77024
Nathan W Franke	officer: EVP and Chief Financial Office	17101 ARMSTRONG AVE, IRVINE CA 92614
Robert F Kistinger	director	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Thomas Christopoul	director	RESOURCES CONNECTION INC, 17101 ARMSTRONG AVENUE, IRVINE CA 92614