Zoom Video Communications (NAS:ZM) Interest Coverage

: N/A (As of Jul. 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. Zoom Video Communications's Operating Income for the three months ended in Jul. 2023 was $178 Mil. Zoom Video Communications's Interest Expense for the three months ended in Jul. 2023 was $0 Mil. GuruFocus does not calculate 's interest coverage with the available data. 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. Zoom Video Communications Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

ZM's Interest Coverage is not ranked ^*
in the Software industry.
Industry Median: 31.89
* 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.

Zoom Video Communications Interest Coverage Historical Data

The historical data trend for Zoom Video Communications'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.

Zoom Video Communications Annual Data

Trend

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Interest Coverage

No Debt

N/A

Zoom Video Communications Quarterly Data
	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23
Interest Coverage																N/A	N/A	N/A	N/A	N/A

Competitive Comparison

For the Software - Application subindustry, Zoom Video Communications'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.

Annual Data Quarterly Data

Zoom Video Communications Interest Coverage Distribution

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

* The bar in red indicates where Zoom Video Communications's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.

Zoom Video Communications 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.

Zoom Video Communications's Interest Coverage for the fiscal year that ended in Jan. 2023 is calculated as

Here, for the fiscal year that ended in Jan. 2023, Zoom Video Communications's Interest Expense was $0 Mil. Its Operating Income was $245 Mil. And its Long-Term Debt & Capital Lease Obligation was $74 Mil.

GuruFocus does not calculate Zoom Video Communications's interest coverage with the available data.

Zoom Video Communications's Interest Coverage for the quarter that ended in Jul. 2023 is calculated as

Here, for the three months ended in Jul. 2023, Zoom Video Communications's Interest Expense was $0 Mil. Its Operating Income was $178 Mil. And its Long-Term Debt & Capital Lease Obligation was $62 Mil.

GuruFocus does not calculate Zoom Video Communications's interest coverage with the available data.

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

Zoom Video Communications (NAS:ZM) 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 .

Zoom Video Communications Interest Coverage Related Terms

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

Zoom Video Communications (NAS:ZM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Zoom Video Communications Inc (NAS:ZM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ZM:Mexico 5ZM:Germany Z1OM34:Brazil ZOOM:Austria

Address

55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113

Website

https://www.zoom.com

Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

Executives

Cindy L Hoots	director	C/O ZOOM VIDEO COMMUNICATIONS, INC, 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Gregory Tomb	officer: President	650 CASTRO ST, SUITE 400, MOUNTAIN VIEW CA 94041
William R Mcdermott	director	2225 LAWSON LANE, SANTA CLARA CA 95054
Santiago Subotovsky	director	C/O EMERGENCE CAPITAL PARTNERS, 160 BOVENT ROAD SUITE 300, SAN MATEO CA 94402
Janet Napolitano	director	C/O VIR BIOTECHNOLOGY, INC., 499 ILLINOIS STREET, SUITE 500, SAN FRANCISCO CA 94158
Shane Crehan	officer: Chief Accounting Officer	C/O EVENTBRITE, INC., 155 5TH STREET, 7TH FLOOR, SAN FRANCISCO CA 94103
Velchamy Sankarlingam	officer: Pres. of Engineering & Product	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Herbert Raymond Mcmaster	director	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Michael Saul Abramson	10 percent owner	C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Douglas M Leone	10 percent owner	C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Ryan Azus	officer: Chief Revenue Officer	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Bonus Goal International Ltd	10 percent owner	C/O 7/F, CHEUNG KONG CENTER, 2 QUEEN'S ROAD CENTRAL, HONG KONG K3 00000
Salesforce Com Inc	10 percent owner	SALESFORCE TOWER, 415 MISSION STREET 3RD FL, SAN FRANCISCO CA 94105
Sequoia Capital Global Growth Ii Principals Fund, L.p.	10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Qualcomm Inc/de	10 percent owner	5775 MOREHOUSE DR, SAN DIEGO CA 92121