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UIS (Unisys) Interest Coverage : 5.90 (As of Sep. 2024)


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What is Unisys 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. Unisys's Operating Income for the three months ended in Sep. 2024 was $47 Mil. Unisys's Interest Expense for the three months ended in Sep. 2024 was $-8 Mil. Unisys's interest coverage for the quarter that ended in Sep. 2024 was 5.90. The higher the ratio, the stronger the company's financial strength is.

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

UIS' s Interest Coverage Range Over the Past 10 Years
Min: 0.61   Med: 2.28   Max: 16.84
Current: 3.38


UIS's Interest Coverage is ranked worse than
83.52% of 1626 companies
in the Software industry
Industry Median: 28.575 vs UIS: 3.38

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


Unisys Interest Coverage Historical Data

The historical data trend for Unisys'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.

* Premium members only.

Unisys Interest Coverage Chart

Unisys Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.02 1.99 3.53 0.61 2.28

Unisys Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 31.70 2.24 2.99 5.90

Competitive Comparison of Unisys's Interest Coverage

For the Information Technology Services subindustry, Unisys'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.


Unisys's Interest Coverage Distribution in the Software Industry

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

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



Unisys 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.

Unisys'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, Unisys's Interest Expense was $-31 Mil. Its Operating Income was $70 Mil. And its Long-Term Debt & Capital Lease Obligation was $517 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*70.3/-30.8
=2.28

Unisys's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Unisys's Interest Expense was $-8 Mil. Its Operating Income was $47 Mil. And its Long-Term Debt & Capital Lease Obligation was $518 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*46.6/-7.9
=5.90

* 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.


Unisys  (NYSE:UIS) 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 .


Unisys Interest Coverage Related Terms

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


Unisys Business Description

Traded in Other Exchanges
Address
801 Lakeview Drive, Suite 100, Blue Bell, PA, USA, 19422
Unisys Corp is engaged in the provision of technology solutions for clients across the government, financial services, and commercial markets. It operates through three business segments: Digital Workplace Solutions (DWS),Cloud, Applications & Infrastructure Solutions (CA&I), and Enterprise Computing Solutions (ECS). DWS provides solutions that transform digital workplaces securely and create exceptional end-user experiences. CA&I provides digital platform, applications and infrastructure solutions. ECS provides solutions that harness secure, continuous high-intensity computing and enable digital services through software-defined operating environments.
Executives
Roxanne Taylor director PURE STORAGE, INC., 650 CASTRO ST #400, MOUNTAIN VIEW CA 94041
David Lawrence Brown officer: VP CAO & Corporate Controller 801 LAKEVIEW DRIVE, SUITE 100, BLUE BELL PA 19422
Kristen Prohl officer: SVP, GC, Secretary & CAO 311 E 72ND STREET, #6H, NEW YORK NY 10021
Matthew J Desch director C/O SAIC, 10260 CAMPUS POINT DR M/S F3, SAN DIEGO CA 92121
Claudius Sokenu officer: SVP, Gen. Counsel & Secretary C/O UNISYS CORPORATION, 801 LAKEVIEW DRIVE, BLUE BELL PA 19422
Debra Mccann officer: EVP and CFO C/O UNISYS CORPORATION, 801 LAKEVIEW DRIVE, BLUE BELL PA 19422
John A Kritzmacher director C/O GLOBAL CROSSING LIMITED, 200 PARK AVENUE, SUITE 300, FLORHAM PARK NJ 07932
Lee D Roberts director
Michael M Thomson officer: VP and Corporate Controller 875 THIRD AVENUE, 16TH FLOOR, NEW YORK NY 10022
Gerald P Kenney officer: SVP, Gen. Counsel & Secretary UNISYS CORPORATION, 801 LAKEVIEW DRIVE, SUITE 100, BLUE BELL PA 19422
Erin Mannix officer: Vice President 801 LAKEVIEW DRIVE, BLUE BELL PA 19422
Teresa Poggenpohl officer: Senior Vice President C/O UNISYS CORPORATION, 801 LAKEVIEW DRIVE, SUITE 100, BLUE BELL PA 19422
Denise K Fletcher director UNISYS CORPORATION, 801 LAKEVIEW DRIVE, SUITE 100, BLUE BELL PA 19422
Troy Richardson director 121 SEAPORT BOULEVARD, BOSTON MA 02210
Lisa Madion officer: Senior Vice President 801 LAKEVIEW DRIVE, SUITE 100, BLUE BELL PA 19422