SelectQuote (SelectQuote) Interest Coverage : 1.36 (As of Mar. 2024)

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What is SelectQuote 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. SelectQuote's Operating Income for the three months ended in Mar. 2024 was $33 Mil. SelectQuote's Interest Expense for the three months ended in Mar. 2024 was $-24 Mil. SelectQuote's interest coverage for the quarter that ended in Mar. 2024 was 1.36. The higher the ratio, the stronger the company's financial strength is.

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

SLQT' s Interest Coverage Range Over the Past 10 Years
Min: 0.14 Med: 6.56 Max: 58
Current: 0.33

SLQT's Interest Coverage is ranked worse than
98.78% of 329 companies
in the Insurance industry
Industry Median: 14.62 vs SLQT: 0.33

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

SelectQuote Interest Coverage Historical Data

The historical data trend for SelectQuote'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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SelectQuote Interest Coverage Chart

SelectQuote Annual Data

Trend

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

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58.00

5.29

6.56

0.14

SelectQuote 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															1.60	-	-	2.26	1.36

Competitive Comparison of SelectQuote's Interest Coverage

For the Insurance Brokers subindustry, SelectQuote'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.

SelectQuote's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, SelectQuote's Interest Coverage distribution charts can be found below:

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

SelectQuote 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.

SelectQuote's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, SelectQuote's Interest Expense was $-81 Mil. Its Operating Income was $12 Mil. And its Long-Term Debt & Capital Lease Obligation was $693 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	11.583	/	-80.606
	=	0.14

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

Here, for the three months ended in Mar. 2024, SelectQuote's Interest Expense was $-24 Mil. Its Operating Income was $33 Mil. And its Long-Term Debt & Capital Lease Obligation was $671 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	33.062	/	-24.33
	=	1.36

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

SelectQuote (NYSE:SLQT) 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 .

SelectQuote Interest Coverage Related Terms

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

SelectQuote (SelectQuote) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » SelectQuote Inc (NYSE:SLQT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

6SJA:Germany

Address

6800 West 115th Street, Suite 2511, Overland Park, KS, USA, 66211

Website

http://www.selectquote.com

SelectQuote Inc is a Direct-to-consumer (DTC) distribution platform which facilitates consumers to shop for health, life and auto & home insurance policies online. The company generates its revenues by selling insurance products on behalf of the insurance carrier partners in the form of commission. It functions through three lines namely, SelectQuote Senior, SelectQuote Life, and SelectQuote Auto & Home.

Executives

Joshua Brandon Matthews	officer: President, SelectQuote Senior	6800 WEST 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Grant W Thomas Ii	director	PO BOX 419248, KANSAS CITY MO 64141-6248
Grant William Thomas Iii	officer: CHIEF OPERATING OFFICER	6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Robert Clay Grant	officer: PRESIDENT, SELECTQUOTE SENIOR	6800 W 115TH STREET, SUITE 2511, PARK KS 66211
Sarah Taylor Anderson	officer: (See Remarks)	6800 WEST 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Timothy Robert Danker	director, officer: CHIEF EXECUTIVE OFFICER	6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Hawks Donald L Iii	director	6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Raymond F Weldon	director	6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Matthew Scott Gunter	officer: See Remarks	6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Stephanie D. Fisher	officer: Chief Accounting Officer	10990 ROE AVENUE, OVERLAND PARK KS 66211
Ryan Moore Clement	officer: See Remarks	6800 WEST 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Kristin Gibbar	officer: Chief Human Resources Officer	6800 W. 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Devanny Earl H Iii	director	CERNER CORP, 2800 ROCKCREEK PARKWAY, KANSAS CITY MO 64117-1593
Denise L Devine	director	C/O FULTON FINANCIAL CORPORATION, ONE PENN SQUARE, LANCASTER PA 17602
Raffaele Sadun	officer: CHIEF FINANCIAL OFFICER	6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211