Kansas City Southern (Kansas City Southern) Interest Coverage : 7.39 (As of Sep. 2021)

Kansas City Southern Interest Coverage Chart

Kansas City Southern Annual Data
	Trend	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20
Interest Coverage		Get a 7-Day Free Trial					8.38	9.20	8.80	9.10	6.85

Kansas City Southern Quarterly Data
	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21
Interest Coverage	Get a 7-Day Free Trial															6.89	7.06	6.98	7.39	7.39

Competitive Comparison of Kansas City Southern's Interest Coverage

For the Railroads subindustry, Kansas City Southern'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.

Kansas City Southern's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Kansas City Southern's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kansas City Southern's Interest Coverage falls into.

Kansas City Southern 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Kansas City Southern's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Kansas City Southern's Interest Expense was $-151 Mil. Its Operating Income was $1,034 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,810 Mil.

Kansas City Southern's Interest Coverage for the quarter that ended in Sep. 2021 is calculated as

Here, for the three months ended in Sep. 2021, Kansas City Southern's Interest Expense was $-39 Mil. Its Operating Income was $288 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,816 Mil.

* 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.

Kansas City Southern  (NYSE:KSU) 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 .

Kansas City Southern Interest Coverage Related Terms

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Kansas City Southern (Kansas City Southern) Business Description