Adyen NV (XAMS:ADYEN) Interest Coverage

: 158.78 (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. Adyen NV's Operating Income for the six months ended in Dec. 2023 was €396 Mil. Adyen NV's Interest Expense for the six months ended in Dec. 2023 was €-2 Mil. Adyen NV's interest coverage for the quarter that ended in Dec. 2023 was 158.78. 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. Adyen NV has enough cash to cover all of its debt. Its financial situation is stable.

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

XAMS:ADYEN' s Interest Coverage Range Over the Past 10 Years
Min: 39.73 Med: 117.34 Max: 13634
Current: 142.55

XAMS:ADYEN's Interest Coverage is ranked better than
69.58% of 1601 companies
in the Software industry
Industry Median: 29.56 vs XAMS:ADYEN: 142.55

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

Adyen NV Interest Coverage Historical Data

The historical data trend for Adyen NV'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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Adyen NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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63.55

39.73

46.51

55.57

142.55

Adyen NV Semi-Annual Data
	Dec14	Dec15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial												50.26	37.72	104.63	124.91	158.78

Competitive Comparison

For the Software - Infrastructure subindustry, Adyen NV'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.

Adyen NV Interest Coverage Distribution

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

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

Adyen NV 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.

Adyen NV'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, Adyen NV's Interest Expense was €-5 Mil. Its Operating Income was €682 Mil. And its Long-Term Debt & Capital Lease Obligation was €172 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	681.837	/	-4.783
	=	142.55

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

Here, for the six months ended in Dec. 2023, Adyen NV's Interest Expense was €-2 Mil. Its Operating Income was €396 Mil. And its Long-Term Debt & Capital Lease Obligation was €172 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	395.678	/	-2.492
	=	158.78

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

Adyen NV (XAMS:ADYEN) 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 .

Adyen NV Interest Coverage Related Terms

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

Adyen NV (XAMS:ADYEN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Adyen NV (XAMS:ADYEN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ADYEY:USA ADYYF:USA ADYEN:Mexico ADYENa:UK 0YP5:UK 1N8U:Germany ADYE:Austria

Address

Simon Carmiggeltstraat 6-50, PO Box 10095, Amsterdam, NLD, 1011 DJ

Website

https://www.adyen.com

Adyen is a payment company that provides merchants with a single platform to accept e-commerce, mobile, and point-of-sale payments in multiple countries using various payment schemes and methodologies. Adyen started out providing only gateway and payment processing services to merchants but soon expanded into merchant acquiring services as well. Adyen obtained a banking licence to improve settlement of merchant accounts.

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