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PRG (PROG Holdings) Interest Coverage : 10.01 (As of Sep. 2024)


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What is PROG Holdings 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. PROG Holdings's Operating Income for the three months ended in Sep. 2024 was $97 Mil. PROG Holdings's Interest Expense for the three months ended in Sep. 2024 was $-10 Mil. PROG Holdings's interest coverage for the quarter that ended in Sep. 2024 was 10.01. The higher the ratio, the stronger the company's financial strength is.

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

PRG' s Interest Coverage Range Over the Past 10 Years
Min: 11.77   Med: 21.71   Max: 2350.48
Current: 12.04


PRG's Interest Coverage is ranked worse than
51.94% of 801 companies
in the Business Services industry
Industry Median: 13.39 vs PRG: 12.04

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


PROG Holdings Interest Coverage Historical Data

The historical data trend for PROG Holdings'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.

PROG Holdings Interest Coverage Chart

PROG Holdings 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 111.43 2,350.48 92.89 11.77 14.72

PROG Holdings 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 9.82 18.42 10.74 10.85 10.01

Competitive Comparison of PROG Holdings's Interest Coverage

For the Rental & Leasing Services subindustry, PROG Holdings'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.


PROG Holdings's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, PROG Holdings's Interest Coverage distribution charts can be found below:

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



PROG Holdings 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.

PROG Holdings'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, PROG Holdings's Interest Expense was $-29 Mil. Its Operating Income was $433 Mil. And its Long-Term Debt & Capital Lease Obligation was $608 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*432.861/-29.406
=14.72

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

Here, for the three months ended in Sep. 2024, PROG Holdings's Interest Expense was $-10 Mil. Its Operating Income was $97 Mil. And its Long-Term Debt & Capital Lease Obligation was $605 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*96.652/-9.66
=10.01

* 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.


PROG Holdings  (NYSE:PRG) 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 .


PROG Holdings Interest Coverage Related Terms

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


PROG Holdings Business Description

Traded in Other Exchanges
Address
256 West Data Drive, Draper, UT, USA, 84020-2315
PROG Holdings Inc is a financial technology holding company that provides transparent and competitive payment options to consumers. The Company has two reportable segments: (i) Progressive Leasing, an in-store, app-based, and e-commerce point-of-sale lease-to-own solutions provider; and (ii) Vive Financial (Vive), an omnichannel provider of second-look revolving credit products. The majority of the revenue of the company is earned through the progressive leasing segment.
Executives
Michael Todd King officer: Chief Legal and Compliance Off 256 WEST DATA DRIVE, DRAPER UT 84020
Thomas Eugene Vin Iv officer: General Counsel and Corp Sec 632 NORTH TARA COURT, WHICHITA KS 67206
Brian Garner officer: Chief Financial Officer 256 WEST DATA DR, DRAPER UT 84020
Curtis Linn Doman director, officer: Chief Innovation Officer-PROG 256 DATA DR, DRAPER UT 84020
Steven A Michaels director, officer: CEO 256 DATA DR, DRAPER UT 84020
Ramon Michael Martinez director 256 WEST DATA DRIVE, DRAPER UT 84020
Caroline Sio-chin Sheu director 256 WEST DATA DRIVE, DRAPER UT 84020
Douglas C Curling director 1000 ALDERMAN DRIVE, ALPHARETTA GA 30005
Ray M Robinson director 1170 PEACHTREE STREET NE, SUITE 2300, ATLANTA GA 30309
Kathy T Betty director 309 E. PACES FERRY ROAD, ATLANTA GA 30305
Cynthia N Day director 75 PIEDMONT AVE, ATLANTA GA 30303
James P. Smith director 256 WEST DATA DRIVE, DRAPER UT 84020
George M Sewell officer: Principal Acct Off, VP Fin Rep 256 WEST DATA DR, DRAPER UT 84020
Blake Wakefield officer: President, Chief Revenue Off 256 WEST DATA DR, DRAPER UT 84020
Marvin A Fentress officer: General Counsel, Corp Sec 256 WEST DATA DR, DRAPER UT 84020