Loyalty Ventures (Loyalty Ventures) Interest Coverage : 1.36 (As of Sep. 2022)

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What is Loyalty Ventures 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. Loyalty Ventures's Operating Income for the three months ended in Sep. 2022 was $15.7 Mil. Loyalty Ventures's Interest Expense for the three months ended in Sep. 2022 was $-11.5 Mil. Loyalty Ventures's interest coverage for the quarter that ended in Sep. 2022 was 1.36. The higher the ratio, the stronger the company's financial strength is.

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

LYLTQ's Interest Coverage is not ranked ^*
in the Transportation industry.
Industry Median: 5.5
* Ranked among companies with meaningful Interest Coverage only.

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

Loyalty Ventures Interest Coverage Historical Data

The historical data trend for Loyalty Ventures'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.

Loyalty Ventures Interest Coverage Chart

Loyalty Ventures Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Interest Coverage

26.28

38.79

N/A

19.04

Loyalty Ventures Quarterly Data
	Dec18	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Interest Coverage	Get a 7-Day Free Trial							N/A	3.53	1.26	1.30	1.36

Competitive Comparison of Loyalty Ventures's Interest Coverage

For the Airports & Air Services subindustry, Loyalty Ventures'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.

Loyalty Ventures's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Loyalty Ventures's Interest Coverage distribution charts can be found below:

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

Loyalty Ventures 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.

Loyalty Ventures's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Loyalty Ventures's Interest Expense was $-5.5 Mil. Its Operating Income was $105.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $706.7 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2021 )	/	Interest Expense (A: Dec. 2021 )
	=	-1	*	105.366	/	-5.534
	=	19.04

Loyalty Ventures's Interest Coverage for the quarter that ended in Sep. 2022 is calculated as

Here, for the three months ended in Sep. 2022, Loyalty Ventures's Interest Expense was $-11.5 Mil. Its Operating Income was $15.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $656.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2022 )	/	Interest Expense (Q: Sep. 2022 )
	=	-1	*	15.706	/	-11.527
	=	1.36

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

Loyalty Ventures (OTCPK:LYLTQ) 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 .

Loyalty Ventures Interest Coverage Related Terms

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

Loyalty Ventures (Loyalty Ventures) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Loyalty Ventures Inc (OTCPK:LYLTQ) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

7500 Dallas Parkway, Suite 700, Plano, TX, USA, 75024

Website

Loyalty Ventures Inc provides coalition and campaign-based loyalty solutions through the Canadian AIR MILES Reward Program and BrandLoyalty Group B.V. It owns and operates the AIR MILES Reward Program, and Netherlands-based BrandLoyalty, a provider of purpose-driven, tailor-made campaign-based loyalty solutions for grocers and other high-frequency retailers. The AIR MILES Reward Program is a full-service outsourced coalition loyalty program for its sponsors who pay a fee per AIR MILES reward mile issued, in return for which the AIR MILES Reward Program provides all marketing, customer service, rewards and redemption management. BrandLoyalty designs, implements, conducts and evaluates and tailor-made loyalty programs for high frequency retailers worldwide.

Executives

Barbara L Rayner	director	7500 DALLAS PARKWAY, SUITE 700, PLANO TX 75024
Charles L Horn	director, officer: President and CEO	BUILDERS FIRSTSOURCE INC., 2001 BRYAN STREET, SUITE 1600, DALLAS TX 75201
Roger H Ballou	director	C/O CDI CORP, 1717 ARCH ST 35TH FL, PHILADELPHIA PA 19103
Graham W Atkinson	director	1200 E. ALGONQUIN ROAD, ELK GROVE TOWNSHIP IL 60007
Richard A. Genovese	director	2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Laura Santillan	officer: SVP, Chief Accounting Officer	17655 WATERVIEW PARKWAY, DALLAS TX 75252
John Jeffrey Chesnut	officer: EVP, Chief Financial Officer	7500 DALLAS PARKWAY, SUITE 700, PLANO TX 75024
Cynthia L Hageman	officer: EVP, GC & Secretary	7500 DALLAS PARKWAY, SUITE 700, PLANO TX 75024
Claudia Mennen	officer: BrandLoyalty CEO	7500 DALLAS PARKWAY, SUITE 700, PLANO TX 75024
Blair F Cameron	officer: President, AIR MILES	7500 DALLAS PARKWAY, SUITE 700, PLANO TX 75024
Alliance Data Systems Corp	10 percent owner	3095 LOYALTY CIRCLE, COLUMBUS OH 43219