TSS (TSSI) Interest Coverage : 1.94 (As of Dec. 2023)

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What is TSS 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. TSS's Operating Income for the three months ended in Dec. 2023 was $0.73 Mil. TSS's Interest Expense for the three months ended in Dec. 2023 was $-0.37 Mil. TSS's interest coverage for the quarter that ended in Dec. 2023 was 1.94. The higher the ratio, the stronger the company's financial strength is.

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

TSSI' s Interest Coverage Range Over the Past 10 Years
Min: 0.98 Med: 1.53 Max: 4.28
Current: 1.08

TSSI's Interest Coverage is ranked worse than
94.95% of 1604 companies
in the Software industry
Industry Median: 28.885 vs TSSI: 1.08

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

TSS Interest Coverage Historical Data

The historical data trend for TSS'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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TSS Interest Coverage Chart

TSS Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.53

0.98

1.08

TSS Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	-	1.50	1.48	1.94

Competitive Comparison of TSS's Interest Coverage

For the Information Technology Services subindustry, TSS'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.

TSS's Interest Coverage Distribution in the Software Industry

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

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

TSS 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.

TSS'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, TSS's Interest Expense was $-1.62 Mil. Its Operating Income was $1.75 Mil. And its Long-Term Debt & Capital Lease Obligation was $3.63 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1.75	/	-1.616
	=	1.08

TSS's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, TSS's Interest Expense was $-0.37 Mil. Its Operating Income was $0.73 Mil. And its Long-Term Debt & Capital Lease Obligation was $3.63 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	0.725	/	-0.374
	=	1.94

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

TSS (OTCPK:TSSI) 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 .

TSS Interest Coverage Related Terms

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

TSS (TSSI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » TSS Inc (OTCPK:TSSI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

110 East Old Settlers Road, Round Rock, TX, USA, 78664

Website

https://www.totalsitesolutions.com

TSS Inc provides various services for planning, design, development, and maintenance of mission-critical facilities and information infrastructure, as well as integration services. Its services consist of technology consulting, design and engineering, project management, systems integration, systems installation, and facilities management. Its Facilities unit which is involved in the design, project management and maintenance of data center and mission-critical business operations, and Systems Integration unit that integrates IT equipment for Original Equipment Manufacturer vendors and customers to use inside data center environments, including modular data centers. The activities are organized into two segments: facilities, and systems integration. It generates revenue from United States.

Executives

Darryll E Dewan	director, officer: President and CEO	4400 VIA ESPERANZA, SANTA BARBARA CA 93110
Richard M. Metzler	director	1805 WEST AVENUE, AUSTIN TX 78701
Matt Crichton	officer: Sr. V.P., Business Development	101 LOCHINVAR COURT, CARY NC 27511
Kieran Brennan	officer: Sr. V.P., Sales & Marketing	5131 BRIARGROVE LANE, DALLAS TX 75287
Gerard J Gallagher	director, 10 percent owner, officer: President and COO	7226 LEE DEFOREST DRIVE, SUITE 104, COLUMBIA MD 21046
Glen Ikeda	10 percent owner	P.O. BOX 3306, AUBURN CA 95604
Peter H Woodward	director	30 WEST 63RD STREET, SUITE 18G, NEW YORK NY 10023
John K Penver	officer: Interim CFO	3709 HUMBLE COVE, AUSTIN TX 78730
Martin T. Olsen	officer: Exec. VP, Sales & Marketing	2128 W. BRAKER LANE BK12, AUSTIN TX 78758
Thomas P Rosato	director, 10 percent owner, officer: Chief Executive Officer	7226 LEE DEFOREST DRIVE, SUITE 104, COLUMBIA MD 21046
Maura Mcnerney	officer: Chief Financial Officer	7226 LEE DEFOREST DRIVE, SUITE 104, COLUMBIA MD 21046
Ken Schwarz	officer: Chief Financial Officer	14901 BOGLE DRIVE, SUITE 300, CHANTILLY VA 20151
Daniel J Phelps	director	1001 O'BRIEN DRIVE, MENLO PARK CA 94025
Anthony Angelini	director, officer: Chief Executive Officer
Tarsier Nanocap Value Fund, Lp	10 percent owner, other: see footnote #1	C/O HUMMINGBIRD MANAGEMENT, LLC, 145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022