KLDiscovery (KLDiscovery) Interest Coverage : 0.27 (As of Dec. 2023)

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What is KLDiscovery 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. KLDiscovery's Operating Income for the three months ended in Dec. 2023 was $4.7 Mil. KLDiscovery's Interest Expense for the three months ended in Dec. 2023 was $-17.5 Mil. KLDiscovery's interest coverage for the quarter that ended in Dec. 2023 was 0.27. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. KLDiscovery Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

KLDI' s Interest Coverage Range Over the Past 10 Years
Min: 0.04 Med: 0.22 Max: 0.51
Current: 0.51

KLDI's Interest Coverage is ranked worse than
97.32% of 1602 companies
in the Software industry
Industry Median: 29.17 vs KLDI: 0.51

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

KLDiscovery Interest Coverage Historical Data

The historical data trend for KLDiscovery'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.

KLDiscovery Interest Coverage Chart

KLDiscovery Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.05

0.04

0.34

0.22

0.51

KLDiscovery Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															0.69	0.72	0.70	0.40	0.27

Competitive Comparison of KLDiscovery's Interest Coverage

For the Software - Application subindustry, KLDiscovery'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.

KLDiscovery's Interest Coverage Distribution in the Software Industry

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

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

KLDiscovery 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.

KLDiscovery'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, KLDiscovery's Interest Expense was $-66.7 Mil. Its Operating Income was $34.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $7.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	34.297	/	-66.743
	=	0.51

KLDiscovery's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, KLDiscovery's Interest Expense was $-17.5 Mil. Its Operating Income was $4.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $7.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	4.675	/	-17.546
	=	0.27

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

KLDiscovery (OTCPK:KLDI) 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 .

KLDiscovery Interest Coverage Related Terms

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

KLDiscovery (KLDiscovery) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » KLDiscovery Inc (OTCPK:KLDI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

9023 Columbine Road, Eden Prairie, MN, USA, 55347

Website

https://www.kldiscovery.com

KLDiscovery Inc is a provider of technology-enabled services and software to help law firms, corporations, government agencies, and consumers solve complex data challenges. The company is engaged in providing technology-based litigation support solutions and services.

Executives

Arjun Shah	director	C/O KLDISCOVERY INC., 8201 GREENSBORO DR., SUITE 300, MCLEAN VA 22102
Lauren Tanenbaum	director	C/O KLDISCOVERY INC., 8201 GREENSBORO DR., SUITE 300, MCLEAN VA 22102
Jonathan J Ledecky	director	C/O THE LEDECKY FOUNDATION, 901 - 15TH STREET, NW, SUITE 950, WASHINGTON DC 20005
Prior Lawrence B Iii	director	10260 CAMPUS POINT DRIVE, M/S 1-4-1, SAN DIEGO CA 92121
Ian Fujiyama	director	CARLYLE GROUP, 1001 PENNSYLVANIA AVE NW, SUITE 220S, WASHINGTON DC 20004
Cg Subsidiary Holdings L.l.c.	10 percent owner	C/O THE CARLYLE GROUP, SUITE 220 SOUTH, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004
Evan B Morgan	director	C/O PIVOTAL ACQUISITION CORP., C/O GRAUBARD MILLER, 405 LEXINGTON AVE, NEW YORK NY 10174
Donna S Morea	director	214 N TRYON STREET, CHARLOTTE NC 28202
Dawn M. Wilson	officer: Chief Financial Officer	C/O KLDISCOVERY, 8201 GREENSBORO DRIVE, SUITE 300, MCLEAN VA 22102
Krystina L. Jones	officer: EVP, Global Sales & Marketing	C/O KLDISCOVERY, 8201 GREENBORO DRIVE, SUITE 300, MCLEAN VA 22102
Richard J Williams	director	125 HIGH STREET, 26TH FLOOR, BOSTON MA 02110
Greg Racz	director, 10 percent owner, other: See remarks	C/O OCTAVIAN GLOBAL PARTNERS, LLC, 650 MADISON AVENUE, 26TH FLOOR, NEW YORK NY 10022
Mgg Investment Group Lp	director, 10 percent owner, other: See remarks	ONE PENN PLAZA, 53RD FLOOR, NEW YORK NY 10119
Ceof Ii Coinvestment (de), L.p.	10 percent owner	C/O THE CARLYLE GROUP, SUITE 220 SOUTH, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004
Ceof Ii De I Aiv, L.p.	10 percent owner	C/O THE CARLYLE GROUP, SUITE 220 SOUTH, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004