Belo (FRA:BES) Interest Coverage : 2.91 (As of Sep. 2013)

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What is Belo 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. Belo's Operating Income for the three months ended in Sep. 2013 was €31.7 Mil. Belo's Interest Expense for the three months ended in Sep. 2013 was €-10.9 Mil. Belo's interest coverage for the quarter that ended in Sep. 2013 was 2.91. The higher the ratio, the stronger the company's financial strength is.

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

FRA:BES' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 3.44
Current: 3.44

FRA:BES's Interest Coverage is not ranked
in the Media - Diversified industry.
Industry Median: 11.915 vs FRA:BES: 3.44

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

Belo Interest Coverage Historical Data

The historical data trend for Belo'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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Belo Interest Coverage Chart

Belo Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Interest Coverage

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2.77

2.12

3.29

Belo Quarterly Data
	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
Interest Coverage	Get a 7-Day Free Trial															3.16	4.59	2.75	3.36	2.91

Competitive Comparison of Belo's Interest Coverage

For the Broadcasting subindustry, Belo'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.

Belo's Interest Coverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Belo's Interest Coverage distribution charts can be found below:

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

Belo 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.

Belo's Interest Coverage for the fiscal year that ended in Dec. 2012 is calculated as

Here, for the fiscal year that ended in Dec. 2012, Belo's Interest Expense was €-53.1 Mil. Its Operating Income was €174.6 Mil. And its Long-Term Debt & Capital Lease Obligation was €558.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2012 )	/	Interest Expense (A: Dec. 2012 )
	=	-1	*	174.559	/	-53.115
	=	3.29

Belo's Interest Coverage for the quarter that ended in Sep. 2013 is calculated as

Here, for the three months ended in Sep. 2013, Belo's Interest Expense was €-10.9 Mil. Its Operating Income was €31.7 Mil. And its Long-Term Debt & Capital Lease Obligation was €533.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2013 )	/	Interest Expense (Q: Sep. 2013 )
	=	-1	*	31.688	/	-10.874
	=	2.91

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

Belo (FRA:BES) 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 .

Belo Interest Coverage Related Terms

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

Belo (FRA:BES) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Belo Corporation (FRA:BES) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.belo.com

Belo Corporation, a Delaware corporation, began as a Texas newspaper company in 1842. The company operates as a television company in the United States. It owns 20 television stations that reach more than 14 percent of U.S. television households, including ABC, CBS, NBC, FOX, CW and MyNetwork TV affiliates, and their associated websites, in 15 markets across the United States. The Company also has three local and two regional news channels, Texas Cable News and NorthWest Cable News. It also operates more than 20 websites several interactive alliances and a broad range of Internet-based products. The Company derives revenues from the sale of airtime on its television stations, advertising space on the Company's Internet websites and retransmission of its programming by cable, satellite, telephone and wireless companies.

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