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LPL Financial Holdings (LPL Financial Holdings) Interest Coverage

: 6.40 (As of Dec. 2023)
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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. LPL Financial Holdings's Operating Income for the three months ended in Dec. 2023 was $348 Mil. LPL Financial Holdings's Interest Expense for the three months ended in Dec. 2023 was $-54 Mil. LPL Financial Holdings's interest coverage for the quarter that ended in Dec. 2023 was 6.40. The higher the ratio, the stronger the company's financial strength is.

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

LPLA' s Interest Coverage Range Over the Past 10 Years
Min: 4.08   Med: 6.83   Max: 9.81
Current: 8.73


LPLA's Interest Coverage is ranked worse than
57.78% of 450 companies
in the Capital Markets industry
Industry Median: 19.12 vs LPLA: 8.73

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


LPL Financial Holdings Interest Coverage Historical Data

The historical data trend for LPL Financial 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.

LPL Financial Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.73 6.92 6.99 9.81 8.73

LPL Financial Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 12.31 12.34 9.67 7.57 6.40

Competitive Comparison

For the Capital Markets subindustry, LPL Financial 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.


LPL Financial Holdings Interest Coverage Distribution

For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Interest Coverage distribution charts can be found below:

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



LPL Financial 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.

LPL Financial 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, LPL Financial Holdings's Interest Expense was $-187 Mil. Its Operating Income was $1,632 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,963 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*1631.579/-186.804
=8.73

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

Here, for the three months ended in Dec. 2023, LPL Financial Holdings's Interest Expense was $-54 Mil. Its Operating Income was $348 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,963 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*348.202/-54.415
=6.40

* 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.


LPL Financial Holdings  (NAS:LPLA) 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 .


LPL Financial Holdings Interest Coverage Related Terms

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


LPL Financial Holdings (LPL Financial Holdings) Business Description

Traded in Other Exchanges
Address
4707 Executive Drive, San Diego, CA, USA, 92121
LPL Financial Holdings is an independent broker/dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. As of the end of 2022, the company had nearly 20,000 advisors on its platform managing over $1 trillion of client assets.
Executives
Sallie R. Larsen officer: MD, Chief Human Cap. Officer ONE BEACON STREET, 22ND FLOOR, BOSTON MA 02018
Aneri Jambusaria officer: Managing Director C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Dan H. Arnold officer: MD & Division President, FIS C/O LPL INVESTMENT HOLDINGS INC., ONE BEACON STREET, BOSTON MA 02108
Richard Steinmeier officer: Managing Director C/O LPL FINANCIAL HOLDINGS, INC., 75 STATE STREET, 22ND FLOOR, BOSTON MA 02109
Althea Brown officer: Managing Director C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Matthew Enyedi officer: Managing Director C/O LPL FINANCIAL HOLDINGS, INC., 75 STATE STREET, 22ND FLOOR, BOSTON MA 02109
Glavin William Francis Jr director 6803 SOUTH TUCSON WAY, CENTENNIAL CO 80112
Richard P Schifter director 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Michelle Oroschakoff officer: MD, Chief Risk Officer 75 STATE STREET, 24TH FLOOR, BOSTON MA 02109
Matthew J Audette officer: Chief Financial Officer C/O DAVIS POLK & WARDWELL, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Albert J Ko director C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Brent Simonich officer: EVP, CAO and Treasurer C/O E*TRADE FINANCIAL CORP., 11 TIMES SQUARE, 32ND FLOOR, NEW YORK NY 10036-9992
Kabir Sethi officer: Managing Director C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Edward Fandrey officer: Managing Director C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
George Burton White officer: MD, Chief Investment Officer ONE BEACON STREET, 22ND FLOOR, BOSTON MA 02108