Solera Holdings (Solera Holdings) Interest Coverage : 1.53 (As of Dec. 2015)

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What is Solera 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. Solera Holdings's Operating Income for the three months ended in Dec. 2015 was $70 Mil. Solera Holdings's Interest Expense for the three months ended in Dec. 2015 was $-46 Mil. Solera Holdings's interest coverage for the quarter that ended in Dec. 2015 was 1.53. The higher the ratio, the stronger the company's financial strength is.

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

SLH's Interest Coverage is not ranked ^*
in the Software industry.
Industry Median: 29.505
* Ranked among companies with meaningful Interest Coverage only.

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

Solera Holdings Interest Coverage Historical Data

The historical data trend for Solera 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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Solera Holdings Interest Coverage Chart

Solera Holdings Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Interest Coverage

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6.22

4.09

2.98

1.92

1.68

Solera Holdings Quarterly Data
	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
Interest Coverage	Get a 7-Day Free Trial															2.41	1.28	1.64	0.66	1.53

Competitive Comparison of Solera Holdings's Interest Coverage

For the Software - Application subindustry, Solera 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.

Solera Holdings's Interest Coverage Distribution in the Software Industry

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

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

Solera 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.

Solera Holdings's Interest Coverage for the fiscal year that ended in Jun. 2015 is calculated as

Here, for the fiscal year that ended in Jun. 2015, Solera Holdings's Interest Expense was $-125 Mil. Its Operating Income was $209 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,482 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2015 )	/	Interest Expense (A: Jun. 2015 )
	=	-1	*	209.416	/	-124.748
	=	1.68

Solera Holdings's Interest Coverage for the quarter that ended in Dec. 2015 is calculated as

Here, for the three months ended in Dec. 2015, Solera Holdings's Interest Expense was $-46 Mil. Its Operating Income was $70 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,125 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2015 )	/	Interest Expense (Q: Dec. 2015 )
	=	-1	*	70.096	/	-45.928
	=	1.53

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

Solera Holdings (NYSE:SLH) 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 .

Solera Holdings Interest Coverage Related Terms

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

Solera Holdings (Solera Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Solera Holdings Inc (NYSE:SLH) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.solerainc.com

Solera Holdings Inc was incorporated on February 1, 2005 in Delaware. The Company is a provider of software and services to the automobile insurance claims processing industry. It also provides products and services that complement or leverage the insurance claims processing software and services. These core extensions include products and services for used vehicle validation, electronic titling, property claims management, fraud detection, salvage yard management, disposition of salvage vehicles, subrogation, and data and analytics used by insurers in the re-underwriting of their insured drivers. Its insurance claims processing customers include insurance companies, collision repair facilities, assessors and automotive recyclers. The Company operates in more than 65 countries across six continents. Its sales and marketing personnel identify and target specific sales opportunities and manage customer relationships. The Company is subject to government regulation and, from time to time, companies in similar lines of business to it are subject to adverse publicity concerning the use of such data.

Executives

Patrick D Campbell	director	MINNESOTA MINING & MANUFACTURING CO, 3M CENTER, ST. PAUL IL 55133
Thomas C Wajnert	director	401 NORTH MAIN STREET, WINSTON SALEM NC 27102
Thomas A Dattilo	director	COOPER TIRE & RUBBER COMPANY, 701 LIMA AVENUE, FINDLAY OH 45840
Arthur F Kingsbury	director	C/O CANOO INC., 19951 MARINER AVENUE, TORRANCE CA 90503
Michael E Lehman	director
Stuart J Yarbrough	director	303 PERIMETER CENTER NORTH, SUITE 600, ATLANTA GA 30346
Abilio Jose Gonzalez	officer: Snr. Vice President, Global HR	2419 277TH AVENUE SE, FALL CITY WA 98024
Jerrell Shelton	director	C/O NETRATINGS INC, 120 WEST 45TH STREET 35TH FLOOR, NEW YORK NY 10036
John Joseph Giamatteo	officer: Chief Operating Officer
Dudley W Mendenhall	officer: CFO	5818 EL CAMINO REAL, CARLSBAD CA 92008
Gtcr Fund Viii Lp	10 percent owner	C/O GTCR GOLDER RAUNER LLC, SEARS TOWER #6100, CHICAGO IL 60606-6402
Gtcr Fund Viii/b L P	10 percent owner	C/O GTCR GOLDER RAUNER LLC, SEARS TOWER #6100, CHICAGO IL 60606-6402
Gtcr Co Invest Ii Lp	10 percent owner	C/O GTCR GOLDER RAUNER LLC, SEARS TOWER #6100, CHICAGO IL 60606-6402
Gtcr Partners Viii L P	10 percent owner
Gtcr Golder Rauner Ii Llc	10 percent owner