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Lamar Advertising Co (Lamar Advertising Co) Interest Coverage

: 4.32 (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. Lamar Advertising Co's Operating Income for the three months ended in Dec. 2023 was $191 Mil. Lamar Advertising Co's Interest Expense for the three months ended in Dec. 2023 was $-44 Mil. Lamar Advertising Co's interest coverage for the quarter that ended in Dec. 2023 was 4.32. The higher the ratio, the stronger the company's financial strength is.

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

LAMR' s Interest Coverage Range Over the Past 10 Years
Min: 2.62   Med: 3.56   Max: 4.88
Current: 3.84


LAMR's Interest Coverage is ranked better than
60.86% of 677 companies
in the REITs industry
Industry Median: 3.01 vs LAMR: 3.84

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


Lamar Advertising Co Interest Coverage Historical Data

The historical data trend for Lamar Advertising Co'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.

Lamar Advertising Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.39 2.91 4.88 4.41 3.84

Lamar Advertising Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 2.56 2.80 4.01 4.15 4.32

Competitive Comparison

For the REIT - Specialty subindustry, Lamar Advertising Co'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.


Lamar Advertising Co Interest Coverage Distribution

For the REITs industry and Real Estate sector, Lamar Advertising Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Lamar Advertising Co's Interest Coverage falls into.



Lamar Advertising Co 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.

Lamar Advertising Co'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, Lamar Advertising Co's Interest Expense was $-175 Mil. Its Operating Income was $670 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,181 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*669.96/-174.512
=3.84

Lamar Advertising Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Lamar Advertising Co's Interest Expense was $-44 Mil. Its Operating Income was $191 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,181 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*191.478/-44.349
=4.32

* 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.


Lamar Advertising Co  (NAS:LAMR) 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 .


Lamar Advertising Co Interest Coverage Related Terms

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


Lamar Advertising Co (Lamar Advertising Co) Business Description

Traded in Other Exchanges
Address
5321 Corporate Boulevard, Baton Rouge, LA, USA, 70808
Lamar Advertising Co is an outdoor advertising company organized as a real estate investment trust for U.S. federal income tax purposes. Lamar's core revenue-generating activity is leasing space for advertising on billboards, buses, shelters, benches, logo plates, and airport terminals through short-term agreements. The company is involved in this process from ad copy production to the placement and maintenance of physical advertisements. The vast majority of Lamar's revenue comes from renting ad space on its portfolio of static and digital roadside billboard displays in the U.S. The states of Pennsylvania and Texas house a proportion of these. The company's customers are restaurant, service, healthcare, and retail firms in terms of total revenue.
Executives
Jay Lecoryelle Johnson officer: CFO, Treasurer, EVP C/O DIAMONDROCK HOSPITALITY COMPANY, 2 BETHESDA METRO CENTER, SUITE 1400, BETHESDA MD 20814
Nancy Fletcher director 5321 CORPORATE BOULEVARD, BATON ROUGE LA 70808
Thomas V Reifenheiser director C/O LAMAR CORP, 5551 CORPORATE BLVD, BATON ROUGE LA 70808
Wendell Reilly director C/O BERMAN CAPITAL ADVISORS, 3475 LENOX RD. STE. 760, ATLANTA GA 30326
Koerner John E Iii director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Anna Reilly director C/O LAMAR ADVERTISING COMPANY, 5321 CORPORATE BLVD, BATON ROUGE LA 70808
Stephen P Mumblow director 790 TOWNSHIP LINE ROAD, YARDLEY PA 19067
Elizabeth Mary Thompson director 5321 CORPORATE BOULEVARD, BATON ROUGE LA 70808
Keith A Istre officer: Chief Financial Officer C/O LAMAR CORP, 5321 CORPORATE BLVD, BATON ROUGE LA 70808
Sean E Reilly officer: Chief Operating Officer 5321 CORPORATE BLVD, BATON ROUGE LA 70808
Marshall A Loeb director C/O EASTGROUP PROPERTIES, INC., 190 EAST CAPITOL STREET, JACKSON MS 39201
John Maxwell Hamilton director C/O LAMAR CORP, 5551 CORPORATE BLVD, BATON ROUGE LA 70808
Reilly Kevin P Jr director, officer: President and CEO C/O LAMAR CORP, 5321 CORPORATE BLVD, BATON ROUGE LA 70808
Spo Advisory Corp 10 percent owner PO BOX 2722, C/O SPO PARTNERS & CO, SAN ANSELMO CA 94979
Abrams Capital Management, L.p. 10 percent owner 222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116