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Vroom (VRM) Interest Coverage : 0 (At Loss) (As of Mar. 2025)


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What is Vroom 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. Vroom's Operating Income for the three months ended in Mar. 2025 was $-21.99 Mil. Vroom's Interest Expense for the three months ended in Mar. 2025 was $-11.65 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


VRM's Interest Coverage is not ranked *
in the Vehicles & Parts industry.
Industry Median: 8.18
* 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.


Vroom Interest Coverage Historical Data

The historical data trend for Vroom'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.

Vroom Interest Coverage Chart

Vroom Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
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Vroom Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 - 4.43 - - -

Competitive Comparison of Vroom's Interest Coverage

For the Auto & Truck Dealerships subindustry, Vroom'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.


Vroom's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Vroom's Interest Coverage distribution charts can be found below:

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


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Vroom 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.

Vroom's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Vroom's Interest Expense was $-65.19 Mil. Its Operating Income was $-126.80 Mil. And its Long-Term Debt & Capital Lease Obligation was $392.43 Mil.

Vroom did not have earnings to cover the interest expense.

Vroom's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Vroom's Interest Expense was $-11.65 Mil. Its Operating Income was $-21.99 Mil. And its Long-Term Debt & Capital Lease Obligation was $665.63 Mil.

Vroom did not have earnings to cover the interest expense.

* 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.


Vroom  (NAS:VRM) 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 .


Vroom Interest Coverage Related Terms

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


Vroom Business Description

Traded in Other Exchanges
N/A
Address
4700 Mercantile Drive, Fort Worth, Houston, TX, USA, 76137
Vroom Inc is an end-to-end e-commerce platform for the used vehicles industry. The Company's scalable, data-driven technology brings all phases of the car buying and selling process to consumers offering an extensive selection of used vehicles, transparent pricing, competitive financing, and at-home pick-up and delivery. Its two reportable segments are: The UACC reportable segment represents UACC's operations with its network of third-party dealership customers, including the purchases and servicing of vehicle retail installment sales contracts. The CarStory reportable segment represents sales of AI-powered analytics and digital services to automotive dealers, automotive financial services companies and others in the automotive industry.
Executives
Agnieszka Zakowicz officer: Principal Accounting Officer C/O VROOM, INC., 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Mylod Robert J Jr director
Patricia Moran officer: See remarks GREENHILL & CO., 300 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10022
Carol Denise Stott officer: See remarks C/O VROOM, INC., 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Thomas H Shortt officer: Chief Operating Officer C/O VROOM INC, 1375 BROADWAY, 11TH FLOOR, NEW YORK NY 10018
Robert R. Krakowiak officer: Chief Financial Officer 633 NATALIE LANE, NORTHVILLE MI 48167
Laura W Lang director DIGITAS INC., 800 BOYLSTON STREET, BOSTON MA 02199
Timothy M Crow director 2455 PACES FERRY ROAD, NW, ATLANTA GA 30339
Paul J. Hennessy director, officer: Chief Executive Officer C/O SHUTTERSTOCK, INC., 350 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10118
Catterton Management Company, L.l.c. director, 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
David K. Jones officer: Chief Financial Officer 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Scott Arnold Dahnke director, 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
Cgp2 Lone Star, L.p. 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06930
Frederick Terrell director 17 STATE STREET, NEW YORK NY 10004
Paula B Pretlow director C/O CION ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067

Vroom Headlines

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