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