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Trinet Group (Trinet Group) Interest Coverage : 5.12 (As of Dec. 2023)


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What is Trinet Group 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. Trinet Group's Operating Income for the three months ended in Dec. 2023 was $87 Mil. Trinet Group's Interest Expense for the three months ended in Dec. 2023 was $-17 Mil. Trinet Group's interest coverage for the quarter that ended in Dec. 2023 was 5.12. The higher the ratio, the stronger the company's financial strength is.

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

TNET' s Interest Coverage Range Over the Past 10 Years
Min: 1.6   Med: 11.57   Max: 22.75
Current: 11.73


TNET's Interest Coverage is ranked worse than
52.97% of 791 companies
in the Business Services industry
Industry Median: 13.4 vs TNET: 11.73

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


Trinet Group Interest Coverage Historical Data

The historical data trend for Trinet Group'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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Trinet Group Interest Coverage Chart

Trinet Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.76 17.52 22.75 12.79 11.73

Trinet Group 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 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 9.33 24.14 16.17 11.60 5.12

Competitive Comparison of Trinet Group's Interest Coverage

For the Staffing & Employment Services subindustry, Trinet Group'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.


Trinet Group's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Trinet Group's Interest Coverage distribution charts can be found below:

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



Trinet Group 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.

Trinet Group'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, Trinet Group's Interest Expense was $-40 Mil. Its Operating Income was $469 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,014 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*469/-40
=11.73

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

Here, for the three months ended in Dec. 2023, Trinet Group's Interest Expense was $-17 Mil. Its Operating Income was $87 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,014 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*87/-17
=5.12

* 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.


Trinet Group  (NYSE:TNET) 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 .


Trinet Group Interest Coverage Related Terms

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


Trinet Group (Trinet Group) Business Description

Traded in Other Exchanges
Address
One Park Place, Suite 600, Dublin, CA, USA, 94568
TriNet offers outsourced payroll and human capital management solutions for small and midsize businesses via a professional employer organization model. Under the PEO model, TriNet enters a co-employment arrangement and acts as the employer of record for administrative and regulatory purposes for clients' employees, known as worksite employees. Clients leverage the scale and expertise of TriNet to access competitive employee benefits, share employment risk liability, access compliance support, and outsource mission-critical day-to-day HR functions such as payroll and tax administration. Following the acquisition of Zenefits and Clarus R+D in 2022, TriNet derives the minority of its revenue from self-service HCM software and R&D tax credit services.
Executives
Alexander G. Warren officer: SVP, CHIEF REVENUE OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Burton M. Goldfield director, officer: PRESIDENT, CEO and DIRECTOR ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Ralph A. Clark director C/O SHOTSPOTTER, INC., 7979 GATEWAY BLVD., STE. 210, NEWARK CA 94560
Samantha Wellington officer: SVP, CLO & SECRETARY ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Kelly L Tuminelli officer: EVP & CHIEF FINANCIAL OFFICER TRINET GROUP, INC., ONE PARK PLACE, STE 600, DUBLIN CA 94568
L.p. Agi-t, director, 10 percent owner 40 MORRIS AVENUE, BRYN MAWR PA 19010
Paul Edward Chamberlain director C/O VEEVA SYSTEMS INC., 4280 HACIENDA DRIVE, PLEASANTON CA 94588
Jonathan D. Lee officer: PRINCIPAL ACCOUNTING OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Jayaraman Venkataramani officer: CHIEF DIGITAL & INNOV OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
H Raymond Bingham director 2655 SEELY AVE, SAN JOSE CA 95134
Martin Babinec director TRINET GROUP INC., ONE PARK PLACE., STE. 600, DUBLIN CA 94568
Wayne B Lowell director 3061 ZANKER ROAD, SAN JOSE CA 95134
Olivier Kohler officer: SVP, CHIEF OPERATING OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Myrna Soto director ONE ENERGY PLAZA, JACKSON MI 49201
Katherine August-dewilde director ONE PARK PLACE, SUITE 600, DUBLIN CA 94568