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Resources Connection (NAS:RGP) Interest Coverage

: 0 (At Loss) (As of May. 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. 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
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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 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 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.

   

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.

* 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.


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

Resources Connection logo
Traded in Other Exchanges
Address
17101 Armstrong Avenue, Suite 100, Irvine, CA, USA, 92614
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