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Block (NYSE:SQ) Interest Coverage

: 0 (At Loss) (As of Sep. 2022)
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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. Block's Operating Income for the three months ended in Sep. 2022 was $-47 Mil. Block's Interest Expense for the three months ended in Sep. 2022 was $-6 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


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


Block (NYSE:SQ) Interest Coverage Historical Data

The historical data trend for Block'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.

Block Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 1.23 - 7.01

Block Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
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 2.16 - - - -

Block (NYSE:SQ) Interest Coverage Competitive Comparison

For the Software - Infrastructure subindustry, Block'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.

   

Block (NYSE:SQ) Interest Coverage Distribution

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

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



Block 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.

Block's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Block's Interest Expense was $-33 Mil. Its Operating Income was $232 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,954 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*232.238/-33.124
=7.01

Block's Interest Coverage for the quarter that ended in Sep. 2022 is calculated as

Here, for the three months ended in Sep. 2022, Block's Interest Expense was $-6 Mil. Its Operating Income was $-47 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,477 Mil.

Block did not have earnings to cover the interest expense.

* 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.


Block  (NYSE:SQ) 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 .


Block Interest Coverage Related Terms

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


Block (NYSE:SQ) Business Description

Block logo
Address
1455 Market Street, Suite 600, San Francisco, CA, USA, 94103
Founded in 2009, Block provides payment acquiring services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network. Block has operations in Canada, Japan, Australia, and the United Kingdom; about 5% of revenue is generated outside the U.S.
Executives
Rothstein Sharon director C/O YELP INC. 350 MISSION STREET, 10TH FLOOR SAN FRANCISCO CA 94105
Carter Shawn Corey director C/O S. CARTER ENTERPRISES, LLC 1411 BROADWAY NEW YORK NY 10018
Walker Darren director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Grassadonia Brian officer: Cash App Lead 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Meeker Mary G director 2750 SAND HILL ROAD MENLO PARK CA 94025
Brooks Amy director 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Ahuja Amrita officer: Chief Financial Officer 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Murphy Timothy Hugh officer: Interim CFO & Treasurer C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Daswani Mohit officer: Interim CFO & Treasurer C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Whiteley Sivan officer: Gen. Counsel & Corp. Secretary 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Patterson Anna director C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Rao Naveen G director C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Garutti Randall J director C/O SHAKE SHACK INC. 24 UNION SQUARE EAST, 5TH FLOOR NEW YORK NY 10003
Reses Jacqueline D officer: Capital Lead & People Lead C/O SQUARE, INC. 1455 MARKET STREET #600 SAN FRANCISCO CA 94103
Smith Hillary B officer: Gen. Counsel & Corp. Secretary C/O YEXT, INC 61 NINTH AVENUE NEW YORK NY 10011

Block (NYSE:SQ) Headlines

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