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Astera Labs (Astera Labs) Interest Coverage : No Debt (1) (As of Mar. 2024)


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What is Astera Labs 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. Astera Labs's Operating Income for the three months ended in Mar. 2024 was $-82.97 Mil. Astera Labs's Interest Expense for the three months ended in Mar. 2024 was $0.00 Mil. Astera Labs has no debt. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Astera Labs Inc has enough cash to cover all of its debt. Its financial situation is stable.

(1) 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.

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

ALAB' s Interest Coverage Range Over the Past 10 Years
Min: No Debt   Med: No Debt   Max: No Debt
Current: No Debt

ALAB's Interest Coverage is ranked better than
99.52% of 621 companies
in the Semiconductors industry
Industry Median: 20.85 vs ALAB: No Debt

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

Astera Labs Interest Coverage Historical Data

The historical data trend for Astera Labs'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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Astera Labs Interest Coverage Chart

Astera Labs Annual Data
Trend Dec22 Dec23
Interest Coverage
No Debt No Debt

Astera Labs Quarterly Data
Dec22 Mar23 Dec23 Mar24
Interest Coverage No Debt No Debt No Debt No Debt

Competitive Comparison of Astera Labs's Interest Coverage

For the Semiconductors subindustry, Astera Labs'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.

Astera Labs's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Astera Labs's Interest Coverage distribution charts can be found below:

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


Astera Labs 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.

Astera Labs'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, Astera Labs's Interest Expense was $0.00 Mil. Its Operating Income was $-29.50 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Astera Labs had no debt (1).

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

Here, for the three months ended in Mar. 2024, Astera Labs's Interest Expense was $0.00 Mil. Its Operating Income was $-82.97 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Astera Labs had no debt (1).

* 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.

Astera Labs  (NAS:ALAB) 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 .

Astera Labs Interest Coverage Related Terms

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

Astera Labs (Astera Labs) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Astera Labs Inc (NAS:ALAB) » Definitions » Interest Coverage
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Address
2901 Tasman Drive, Suite 205, Santa Clara, CA, USA, 95054
Website
https://www.asteralabs.com
Astera Labs Inc is a company that offers an Intelligent Connectivity Platform, comprised of Semiconductor-based, high-speed mixed-signal connectivity products that integrate a matrix of microcontrollers and sensors. COSMOS, their software suite which is embedded in its connectivity products and integrated into their customers' systems. The Company delivers critical connectivity performance, enables flexibility and customization, and supports observability and predictive analytics. This approach addresses the data, network, and memory bottlenecks, scalability, and other infrastructure requirements of hyperscalers and system original equipment manufacturers.

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