Meredith (Meredith) Interest Coverage : 2.46 (As of Sep. 2021)

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What is Meredith 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. Meredith's Operating Income for the three months ended in Sep. 2021 was $94 Mil. Meredith's Interest Expense for the three months ended in Sep. 2021 was $-38 Mil. Meredith's interest coverage for the quarter that ended in Sep. 2021 was 2.46. The higher the ratio, the stronger the company's financial strength is.

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

MDP' s Interest Coverage Range Over the Past 10 Years
Min: 2.21 Med: 12.56 Max: 17.27
Current: 2.96

MDP's Interest Coverage is not ranked
in the Media - Diversified industry.
Industry Median: 11.94 vs MDP: 2.96

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

Meredith Interest Coverage Historical Data

The historical data trend for Meredith'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.

Meredith Interest Coverage Chart

Meredith Annual Data

Trend

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Interest Coverage

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17.27

2.88

2.52

2.21

2.86

Meredith 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															2.12	5.86	1.37	2.45	2.46

Competitive Comparison of Meredith's Interest Coverage

For the Publishing subindustry, Meredith'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.

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

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

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

Meredith 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.

Meredith's Interest Coverage for the fiscal year that ended in Jun. 2021 is calculated as

Here, for the fiscal year that ended in Jun. 2021, Meredith's Interest Expense was $-179 Mil. Its Operating Income was $512 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,174 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2021 )	/	Interest Expense (A: Jun. 2021 )
	=	-1	*	511.6	/	-178.6
	=	2.86

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

Here, for the three months ended in Sep. 2021, Meredith's Interest Expense was $-38 Mil. Its Operating Income was $94 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,169 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2021 )	/	Interest Expense (Q: Sep. 2021 )
	=	-1	*	94.4	/	-38.3
	=	2.46

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

Meredith (NYSE:MDP) 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 .

Meredith Interest Coverage Related Terms

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

Meredith (Meredith) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Meredith Corp (NYSE:MDP) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1716 Locust Street, Des Moines, IA, USA, 50309-3023

Website

https://www.meredith.com

Meredith Corp is an American media company that focuses on publications and marketing services around the home, family, food, and lifestyle markets. The company operates two divisions: national media and local media. The national media segment publishes magazines such as Every Day with Rachael Ray, Better Homes and Gardens, Family Fun, and Parents; this segment is the source of the majority of Meredith's revenue. The local media segment owns over 15 television stations around the United States. In 2014, the company announced a 10-year licensing agreement with Martha Stewart Omnimedia to acquire the rights to Martha Stewart Living, Martha Stewart Weddings, and marthastewart.com.

Executives

John S Zieser	officer: Chief Development Officer	1716 LOCUST STREET, LS 101-A; ATTN TERESA T. RINKER, DES MOINES IA 50309-3023
Steven M Cappaert	officer: Corporate Controller
Thomas H Harty	director, officer: President and CEO	MEREDITH CORPORATION 1716 LOCUST ST., MAIL STOP LS101-A DES MOINES IA 50309
Patrick Mccreery	officer: President-Local Media Group	C/O MEREDITH CORP 1716 LOCUST STREET DES MOINES IA 50309
Jason M. Frierott	officer: Chief Financial Officer	C/O TRANSPORTATION SYSTEMS HOLDINGS INC. 901 MAIN AVENUE NORWALK CT 06851
Gregory Coleman	director	C/O MEREDITH CORP., 1716 LOCUST STREET, DES MOINES IA 50309
Donald C Berg	director	PO BOX 1080, LOUISVILLE KY 40201
Stephen M Lacy	director	1716 LOCUST STREET, LS 101-A; ATTN TERESA T. RINKER, DES MOINES IA 50309-3023
Beth J Kaplan	director	1716 LOCUST STREET, DES MOINES IA 50309
Joseph H Ceryanec	officer: Chief Financial Officer	PO BOX 3177 CEDAR RAPIDS IA 52406-3177
Meredith Edwin T Iv	10 percent owner
Elizabeth E Tallett	director	6705 ROCKLEDGE DR, SUITE 900, BETHESDA MD 20817
Iii Chris Roberts	director	1716 LOCUST ST. LS-175, 7TH FLOOR, DES MOINES IA 50309
Paula Kerger	director	C/O MEREDITH CORP 1716 LOCUST STREET DES MOINES IA 50309
Donald A Baer	director	1716 LOCUST STREET DES MOINES IA 50309