Rackspace Technology (Rackspace Technology) Interest Coverage : 0 (At Loss) (As of Mar. 2024)

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What is Rackspace Technology 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. Rackspace Technology's Operating Income for the three months ended in Mar. 2024 was $-60 Mil. Rackspace Technology's Interest Expense for the three months ended in Mar. 2024 was $-44 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 Rackspace Technology's Interest Coverage or its related term are showing as below:

RXT's Interest Coverage is not ranked ^*
in the Software industry.
Industry Median: 29.34
* 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.

Rackspace Technology Interest Coverage Historical Data

The historical data trend for Rackspace Technology'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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Rackspace Technology Interest Coverage Chart

Rackspace Technology Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.30

0.09

0.15

0.01

Rackspace Technology Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Rackspace Technology's Interest Coverage

For the Software - Infrastructure subindustry, Rackspace Technology'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.

Rackspace Technology's Interest Coverage Distribution in the Software Industry

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

* The bar in red indicates where Rackspace Technology's Interest Coverage falls into.

Rackspace Technology 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.

Rackspace Technology's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Rackspace Technology's Interest Expense was $-222 Mil. Its Operating Income was $-138 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,222 Mil.

Rackspace Technology did not have earnings to cover the interest expense.

Rackspace Technology's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Rackspace Technology's Interest Expense was $-44 Mil. Its Operating Income was $-60 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,340 Mil.

Rackspace Technology did not have earnings to cover the interest expense.

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

Rackspace Technology (NAS:RXT) 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 .

Rackspace Technology Interest Coverage Related Terms

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Rackspace Technology (Rackspace Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Rackspace Technology Inc (NAS:RXT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Fanatical Place, City of Windcrest, San Antonio, TX, USA, 78218

Website

https://www.rackspace.com

Rackspace Technology Inc is an end-to-end multi cloud technology services company. It designs, builds and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services; Data; Colocation; Managed Cloud; Managed Hosting; Professional Services; and Security & Compliance. It operates in three reportable segments Multicloud Services; Apps & Cross-Platform; and OpenStack Public Cloud. It generates revenue through the sale of consumption-based contracts for its services offerings and from the sale of professional services related to designing and building custom solutions.

Executives

Srini Koushik	officer: Chief Technology Officer	1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Dharmendra Kumar Sinha	officer: EVP, President, Public Cloud	C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP, 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Amar Maletira	officer: President & CFO	C/O VIAVI SOLUTIONS INC., 430 NORTH MCCARTHY BOULEVARD, MILPITAS CA 95035
Mark A. Marino	other: Vice President & CAO	1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Casey L. Shilling	officer: SVP - Chief Marketing Officer	1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Rackspace Technology, Inc.	director	1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Anthony C. Roberts	director	1 FANATICAL PLACE, SAN ANTONIO TX 78218
Betsy S Atkins	director
Anthony Scott	director	25501 WEST VALLEY PARKWAY, OLATHE KS 66061
Kellie Teal-guess	officer: Chief Human Resources Officer	1 FANATICAL PLACE, C/O RACKSPACE TECHNOLOGY, INC., SAN ANTONIO TX 78218
Brian Lillie	officer: EVP, President Private Cloud	1485 BROOKMILL ROAD, LOS ALTOS CA 94024
Naushaza Molu	officer: EVP, Chief Financial Officer	1 FANATICAL PLACE, SAN ANTONIO TX 78218
Shashank Samant	director	6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Gregory S. Hrncir	officer: SVP - Chief Operations Officer	1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Timothy Campos	director	C/O JDS UNIPHASE CORPORATION, 430 N MCCARTHY BOULEVARD, MILPITAS CA 95035