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Vonage Holdings (Vonage Holdings) Interest Coverage : 0 (At Loss) (As of Mar. 2022)


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What is Vonage 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. Vonage Holdings's Operating Income for the three months ended in Mar. 2022 was $-19 Mil. Vonage Holdings's Interest Expense for the three months ended in Mar. 2022 was $-4 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 Vonage Holdings's Interest Coverage or its related term are showing as below:


VG's Interest Coverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 4.56
* 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.


Vonage Holdings Interest Coverage Historical Data

The historical data trend for Vonage 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.

* Premium members only.

Vonage Holdings Interest Coverage Chart

Vonage Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.99 3.45 0.21 - 0.26

Vonage Holdings Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Interest Coverage Get a 7-Day Free Trial 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 1.22 1.15 1.34 - -

Competitive Comparison of Vonage Holdings's Interest Coverage

For the Telecom Services subindustry, Vonage 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.


Vonage Holdings's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Vonage Holdings's Interest Coverage distribution charts can be found below:

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



Vonage 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.

Vonage Holdings'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, Vonage Holdings's Interest Expense was $-28 Mil. Its Operating Income was $7 Mil. And its Long-Term Debt & Capital Lease Obligation was $469 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*7.381/-28.348
=0.26

Vonage Holdings's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the three months ended in Mar. 2022, Vonage Holdings's Interest Expense was $-4 Mil. Its Operating Income was $-19 Mil. And its Long-Term Debt & Capital Lease Obligation was $505 Mil.

Vonage Holdings 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.


Vonage Holdings  (NAS:VG) 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 .


Vonage Holdings Interest Coverage Related Terms

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


Vonage Holdings (Vonage Holdings) Business Description

Traded in Other Exchanges
N/A
Address
23 Main Street, Holmdel, NJ, USA, 07733
Vonage Holdings Corp is a North American technology company that provides cloud communication services to businesses and consumers. For businesses, the company provides unified communications (as a service), which consists of integrated voice, text, video, data, and mobile applications over Voice over Internet Protocol network. Its reportable operating segments include Vonage Communications Platform and Consumer. For consumer service customers, there is a home telephone replacement service. This can include services such as voicemail, call waiting, and call forwarding. This service is delivered over the Internet. The company generates most of its revenue within the United States.
Executives
Vinod Lala officer: SVP Corporate Development 23 MAIN STREET C/O VONAGE HOLDINGS CORP. HOLMDEL NJ 07733
Randy K. Rutherford officer: Interim Chief Legal Officer C/O VONAGE HOLDINGS CORP. 23 MAIN STREET HOLMDEL NJ 07733
Rory P Read director, officer: Chief Executive Officer ONE DELL WAY, ROUND ROCK TX 78682
Joy Corso officer: Chief Marketing Officer C/O VONAGE HOLDINGS CORP. 23 MAIN STREET HOLMDEL NJ 07733
Jeffrey A Citron director, 10 percent owner, officer: Chairman and Chief Strategist VONAGE HOLDING CORP. 23 MAIN STREET HOLMDEL NJ 07733
Ward Jr Stephen M director C/O CARPENTER TECHNOLOGY CORP, PO BOX 14662, READING PA 19612
Omar Muhammad Javaid officer: Chief Product Officer C/O VONAGE HOLDINGS CORP.,23 MAIN STREET HOLMDEL NJ 07733
Savinay M Berry officer: EVP, Product & Engineering C/O VONAGE HOLDINGS CORP. 23 MAIN STREET HOLMDEL NJ 07733
Stephen L Lasher officer: Chief Financial Officer C/O VONAGE HOLDINGS CORP. 23 MAIN STREET HOLMDEL NJ 07733
Joseph Anthony Bellissimo officer: Chief Operating Officer C/O VONAGE HOLDINGS CORP. 23 MAIN STREET HOLMDEL NJ 07733
Timothy S Shaughnessy officer: Chief Financial Officer IBM CORPORATION, NEW ORCHARD ROAD, ARMONK NY 10504
David T. Pearson officer: CFO & Treasurer C/O VONAGE HOLDINGS CORP, 23 MAIN STREET, HOLMDEL NJ 07733
Vonage Holdings Corp officer: Chief Marketing Officer 101 CRAWFORDS CORNER ROAD SUITE 2416, 4TH FLOOR, BUILDING 2 HOLMDEL NJ 07733
Sagi Dudai officer: SVP Software Engineering 23 MAIN STREET C/O VONAGE HOLDINGS CORP. HOLMDEL NJ 07733
Tien Tzuo director C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065