Legg Mason (Legg Mason) Interest Coverage : 2.37 (As of Jun. 2020)

View and export this data going back to 1983. Start your Free Trial

What is Legg Mason 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. Legg Mason's Operating Income for the three months ended in Jun. 2020 was $68 Mil. Legg Mason's Interest Expense for the three months ended in Jun. 2020 was $-29 Mil. Legg Mason's interest coverage for the quarter that ended in Jun. 2020 was 2.37. The higher the ratio, the stronger the company's financial strength is.

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

LM' s Interest Coverage Range Over the Past 10 Years
Min: 3.69 Med: 4.51 Max: 8.55
Current: 4.46

LM's Interest Coverage is not ranked
in the Asset Management industry.
Industry Median: 42.64 vs LM: 4.46

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

Legg Mason Interest Coverage Historical Data

The historical data trend for Legg Mason'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.

Legg Mason Interest Coverage Chart

Legg Mason Annual Data

Trend

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Interest Coverage

Get a 7-Day Free Trial

8.02

3.69

4.43

4.00

4.59

Legg Mason Quarterly Data
	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20
Interest Coverage	Get a 7-Day Free Trial															2.91	4.57	4.81	6.16	2.37

Competitive Comparison of Legg Mason's Interest Coverage

For the Asset Management subindustry, Legg Mason'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.

Legg Mason's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Legg Mason's Interest Coverage distribution charts can be found below:

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

Legg Mason 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.

Legg Mason's Interest Coverage for the fiscal year that ended in Mar. 2020 is calculated as

Here, for the fiscal year that ended in Mar. 2020, Legg Mason's Interest Expense was $-110 Mil. Its Operating Income was $504 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,251 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2020 )	/	Interest Expense (A: Mar. 2020 )
	=	-1	*	504.245	/	-109.87
	=	4.59

Legg Mason's Interest Coverage for the quarter that ended in Jun. 2020 is calculated as

Here, for the three months ended in Jun. 2020, Legg Mason's Interest Expense was $-29 Mil. Its Operating Income was $68 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,242 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2020 )	/	Interest Expense (Q: Jun. 2020 )
	=	-1	*	67.708	/	-28.581
	=	2.37

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

Legg Mason (NYSE:LM) 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 .

Legg Mason Interest Coverage Related Terms

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

Legg Mason (Legg Mason) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Legg Mason Inc (NYSE:LM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

100 International Drive, Baltimore, MD, USA, 21202-1099

Website

https://www.leggmason.com

Legg Mason provides investment management services for institutional and individual investors. The firm had $783.4 billion in managed assets at the end of June, spread among its equity (25% of total AUM), fixed-income (57%), alternatives (9%), and money market (9%) investment platforms. Legg Mason uses a multiaffiliate business model, with its single- largest affiliate, Western Asset Management, accounting for more than 60% of managed assets. Other major affiliates include ClearBridge Investments (more than 15% of AUM), Brandywine (less than 10%), and Clarion Partners (less than 10%). The remaining affiliates--Martin Currie, Royce & Associates, EnTrustPermal, QS Investors, and RARE Infrastructure--each account for 2% or less of Legg Mason's managed assets.