Vivint Smart Home (Vivint Smart Home) Interest Coverage : 0.83 (As of Dec. 2022)

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What is Vivint Smart Home 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. Vivint Smart Home's Operating Income for the three months ended in Dec. 2022 was $39 Mil. Vivint Smart Home's Interest Expense for the three months ended in Dec. 2022 was $-47 Mil. Vivint Smart Home's interest coverage for the quarter that ended in Dec. 2022 was 0.83. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Vivint Smart Home Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

VVNT' s Interest Coverage Range Over the Past 10 Years
Min: 0.43 Med: 0.43 Max: 0.43
Current: 0.43

VVNT's Interest Coverage is not ranked
in the Business Services industry.
Industry Median: 13.27 vs VVNT: 0.43

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

Vivint Smart Home Interest Coverage Historical Data

The historical data trend for Vivint Smart Home'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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Vivint Smart Home Interest Coverage Chart

Vivint Smart Home Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

0.43

Vivint Smart Home Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Interest Coverage	Get a 7-Day Free Trial												-	0.25	0.06	0.49	0.83

Competitive Comparison of Vivint Smart Home's Interest Coverage

For the Security & Protection Services subindustry, Vivint Smart Home'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.

Vivint Smart Home's Interest Coverage Distribution in the Business Services Industry

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

* The bar in red indicates where Vivint Smart Home's Interest Coverage falls into.

Vivint Smart Home 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.

Vivint Smart Home's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Vivint Smart Home's Interest Expense was $-167 Mil. Its Operating Income was $72 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,726 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	71.544	/	-166.755
	=	0.43

Vivint Smart Home's Interest Coverage for the quarter that ended in Dec. 2022 is calculated as

Here, for the three months ended in Dec. 2022, Vivint Smart Home's Interest Expense was $-47 Mil. Its Operating Income was $39 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,726 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2022 )	/	Interest Expense (Q: Dec. 2022 )
	=	-1	*	38.808	/	-46.851
	=	0.83

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

Vivint Smart Home (NYSE:VVNT) 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 .

Vivint Smart Home Interest Coverage Related Terms

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

Vivint Smart Home (Vivint Smart Home) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Vivint Smart Home Inc (NYSE:VVNT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

4931 North 300 West, Provo, UT, USA, 84604

Website

https://www.vivint.com

Vivint Smart Home Inc is a smart home company based in the United States. The Company is engaged in the sale, installation, servicing and monitoring of smart home and security systems. The company's products and services include Home security and automation systems, Smart security cameras, One-touch leaving, Smart security sensors, Smart lighting and temperature control and Constant monitoring and support.

Executives

313 Acquisition Llc	10 percent owner	THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Holdings Iii L.p.	10 percent owner	C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Rasesh M. Patel	officer: Chief Operating Officer	C/O VIVINT SMART HOME, INC., 4931 NORTH 300 WEST, PROVO UT 84604
Dana C Russell	officer: Chief Financial Officer	404 WYMAN STREET, SUITE 500, WALTHAM MA 02451
Michael J Staub	director	BLACKSTONE, INC., 345 PARK AVENUE, NEW YORK NY 10154
Meads Garner B. Iii	officer: See Remarks	C/O VIVINT SMART HOME, INC., 4931 NORTH 300 WEST, PROVO UT 84604
Daniel Garen	officer: See Remarks	5677 AIRLINE ROAD, ARLINGTON TN 38002
Barbara Comstock	director	C/O VIVINT SMART HOME, INC., 4931 NORTH 300 WEST, PROVO UT 84604
David Bywater	director, officer: Chief Executive Officer	1850 WEST ASHTON BLVD, LEHI UT 84043
Todd R. Pedersen	director, officer: Chief Executive Officer	C/O VIVINT SOLAR, INC., 3301 N. THANKSGIVING WAY, SUITE 500, LEHI UT 84043
Todd M Santiago	officer: EVP, GM of Retail	C/O VIVINT SMART HOME, INC., 4931 NORTH 300 WEST, PROVO UT 84604
Jung Taik Hwang	officer: Chief Technology Officer	C/O VIVINT SMART HOME, INC., 4931 NORTH 300 WEST, PROVO UT 84604
Bcp Voyager Holdings Lp	10 percent owner	C/O THE BLACKSTONE GROUP INC., 345 PARK AVENUE, NEW YORK NY 10154
Jeremy B Warren	officer: Chief Technology Officer	C/O VIVINT SMART HOME, INC., 4931 NORTH 300 WEST, PROVO UT 84604
Matthew J Eyring	officer: EVP, GM of Inside Sales	C/O VIVINT SMART HOME, INC., 4931 NORTH 300 WEST, PROVO UT 84604