Rackspace Hosting (Rackspace Hosting) Effective Interest Rate on Debt % : 6.32% (As of Sep. 2016)

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What is Rackspace Hosting Effective Interest Rate on Debt %?

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Rackspace Hosting's annualized positive value of Interest Expense for the quarter that ended in Sep. 2016 was $41 Mil. Rackspace Hosting's average total debt for the quarter that ended in Sep. 2016 was $646 Mil. Therefore, Rackspace Hosting's annualized Effective Interest Rate on Debt % for the quarter that ended in Sep. 2016 was 6.32%.

Rackspace Hosting Effective Interest Rate on Debt % Historical Data

The historical data trend for Rackspace Hosting's Effective Interest Rate on Debt % 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.

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Rackspace Hosting Effective Interest Rate on Debt % Chart

Rackspace Hosting Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Effective Interest Rate on Debt %

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4.32

3.59

3.28

3.51

3.06

Rackspace Hosting Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Effective Interest Rate on Debt %	Get a 7-Day Free Trial															6.45	4.71	6.39	6.33	6.32

Competitive Comparison of Rackspace Hosting's Effective Interest Rate on Debt %

For the Information Technology Services subindustry, Rackspace Hosting's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.

Rackspace Hosting's Effective Interest Rate on Debt % Distribution in the Software Industry

For the Software industry and Technology sector, Rackspace Hosting's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Rackspace Hosting's Effective Interest Rate on Debt % falls into.

Rackspace Hosting Effective Interest Rate on Debt % Calculation

Rackspace Hosting's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2015 is calculated as

	Effective Interest Rate on Debt %
=	-1 * Interest Expense	/	( (Total Debt (A: Dec. 2014 )	+	Total Debt (A: Dec. 2015 ))	/ count )
=	-1 * -12.5	/	( (159.03	+	658.6)	/ 2 )
=	-1 * -12.5	/	408.815
=	3.06 %

where

	Total Debt (A: Dec. 2014 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	118.937	+	40.093
=	159.03

	Total Debt (A: Dec. 2015 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	656.9	+	1.7
=	658.6

Rackspace Hosting's annualized Effective Interest Rate on Debt % for the quarter that ended in Sep. 2016 is calculated as

	Effective Interest Rate on Debt %
=	-1 * Interest Expense	/	( (Total Debt (Q: Jun. 2016 )	+	Total Debt (Q: Sep. 2016 ))	/ count )
=	-1 * -40.8	/	( (646.6	+	644.6)	/ 2 )
=	-1 * -40.8	/	645.6
=	6.32 %

where

	Total Debt (Q: Jun. 2016 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	646.1	+	0.5
=	646.6

	Total Debt (Q: Sep. 2016 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	644.3	+	0.3
=	644.6

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Sep. 2016) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

Rackspace Hosting (NYSE:RAX) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Rackspace Hosting Effective Interest Rate on Debt % Related Terms

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Rackspace Hosting (Rackspace Hosting) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Rackspace Hosting Inc (NYSE:RAX) » Definitions » Effective Interest Rate on Debt %

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Address

Website

http://www.rackspace.com

Rackspace Hosting Inc was incorporated in Delaware in March 2000. The Company, through its operating subsidiaries, is a provider of cloud computing services, managing web-based IT systems for small and medium-sized businesses as well as large enterprises. It offers a portfolio of integrated IT solutions for common business needs, including for ecommerce, web content management, website hosting, data services, office mail and collaboration, and private clouds. It also offers advisory services for technology strategy, security and compliance, application assessment and migration, and DevOps automation. It offers its solutions across a variety of IT form factors, including multi-tenant public cloud, dedicated single-tenant servers, private cloud, and hybrid cloud - all delivered with a commitment to open and standard technologies. Its marketing activities include web-based paid and natural search, participation in technology trade shows, conferences and customer events, advertisements in traditional and electronic (web and email-based) media, and targeted regional public relations activities. Its trademark includes Rackspace, Fanatical Support, and RackConnect. The Company is subject to U.S. federal income tax and various state, local, and international income taxes in numerous jurisdictions.

Executives

Alex Pinchev	officer: EVP, Global Sales & Marketing	BMC SOFTWARE INC, 2101 CITYWEST BLVD, HOUSTON TX 77042
Lila Tretikov	director	149 NEW MONTGOMERY STREET, FLOOR 6, SAN FRANCISCO CA 94105
John E Harper	director	2300 WEST PLANO PARKWAY, PLANO TX 75075
Joseph Saporito	officer: Chief Accounting Officer
Kevin Costello	director	C/O ARIBA INC, 807 11TH AVENUE, SUNNYVALE CA 94089
Graham M Weston	director, 10 percent owner	425 SOLEDAD SUITE 500, SAN ANTONIO TX 78205
Eugene V Defelice	officer: SVP, General Counsel	1506 COVENTRY LANE SOUTHLAKE TX 76092
Michael S Gilliland	director	3720 BEVERLY DRIVE, DALLAS TX 75205
Still George J Jr	director	NORWEST VENTURE PARTNERS, 525 UNIVERSITY AVENUE, SUITE 800, PALO ALTO CA 94301
A Lanham Napier	director, officer: CEO	701 W. CASTANO, SAN ANTONIO TX 78209
Palmer L Moe	director	5000 WALZEM SAN ANTONIO TX 78218
Wells Fargo & Company/mn	10 percent owner	420 MONTGOMERY STREET, SAN FRANCISCO CA 94163
Promod Haque	10 percent owner	C/O NORWEST VENTURE PARTNERS, 525 UNIVERSITY AVENUE, SUITE 800, PALO ALTO CA 94301
Norwest Venture Partners Viii Lp	10 percent owner	C/O NORWEST VENTURE PARTNERS 525 UNIVERSITY AVENUE, SUITE 800 PALO ALTO CA 94301
James J Goetz	10 percent owner	C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025