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Starz (STRZA) Interest Coverage : 6.32 (As of Sep. 2016)


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What is Starz 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. Starz's Operating Income for the three months ended in Sep. 2016 was $74 Mil. Starz's Interest Expense for the three months ended in Sep. 2016 was $-12 Mil. Starz's interest coverage for the quarter that ended in Sep. 2016 was 6.32. The higher the ratio, the stronger the company's financial strength is.

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


STRZA's Interest Coverage is not ranked *
in the Media - Diversified industry.
Industry Median: 11.94
* Ranked among companies with meaningful Interest Coverage only.

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


Starz Interest Coverage Historical Data

The historical data trend for Starz'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.

Starz Interest Coverage Chart

Starz Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.22 15.77 9.45 9.71 8.91

Starz Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Interest Coverage Get a 7-Day Free Trial 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 8.85 4.58 9.59 9.17 6.32

Competitive Comparison of Starz's Interest Coverage

For the Broadcasting subindustry, Starz'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.


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

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

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



Starz 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.

Starz's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, Starz's Interest Expense was $-46 Mil. Its Operating Income was $410 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,032 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2015 )/Interest Expense (A: Dec. 2015 )
=-1*409.7/-46
=8.91

Starz's Interest Coverage for the quarter that ended in Sep. 2016 is calculated as

Here, for the three months ended in Sep. 2016, Starz's Interest Expense was $-12 Mil. Its Operating Income was $74 Mil. And its Long-Term Debt & Capital Lease Obligation was $990 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2016 )/Interest Expense (Q: Sep. 2016 )
=-1*74/-11.7
=6.32

* 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.


Starz  (NAS:STRZA) 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 .


Starz Interest Coverage Related Terms

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


Starz (STRZA) Business Description

Traded in Other Exchanges
N/A
Address
Starz is a Delaware corporation, incorporated on May 7, 2007. The Company through its subsidiaries, operates as a media and entertainment company. The Company was formerly known as Starz, LLC and changed its name to Starz Inc in January 2013. The Company provides premium subscription video programming services to multichannel video distributors, including cable operators, satellite television providers, and telecommunications companies. The Company pay television channels, global content distribution, and animated television and movie production. The Company also develops, produces, acquires, and distributes entertainment content to consumers on DVD, digital formats, and traditional television. It sells or rents DVDs under the Anchor Bay and Manga brands; and distributes digital and on-demand content for its owned content and content for which it has licensed the non-pay television ancillary rights, as well as movies, television series, documentaries, children's programming, and other video content.
Executives
Irving Azoff director C/O AZOFF MUSIC MANAGEMENT, 1100 GLENDON AVENUE STE 2000, LOS ANGELES CA 90024
Robert S Wiesenthal director C/O SONY CORP OF AMERICA, 550 MADISON AVE, NEW YORK NY 10022
Susan M Lyne director 11 WEST 42ND STREET, NEW YORK NY 10036
Jeffrey Sagansky director 1450 2ND STREET, SUITE 247, SANTA MONICA CA 90401
Gregory B Maffei director 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Charles Y Tanabe director 123 LIBERTY BLVD, ENGLEWOOD CO 80112
Daniel E. Sanchez director C/O DISCOVERY, INC., 8403 COLESVILLE ROAD, SILVER SPRING MD 20910
John C Malone 10 percent owner 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Derek Chang director C/O CHARTER COMMUNICATIONS INC, 12405 POWERCOURT DR, ST LOUIS MO 63131
Richard N Baer officer: SVP, General Counsel
Albert E Rosenthaler officer: Senior Vice President 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Christopher W Shean officer: Senior VP, CFO 12300 LIBERTY BLVD., ENGLEWOOD CO 80116
David E Rapley director 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Gilchrist Malcolm Ian Grant director 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Larry E Romrell director 12300 LIBERTY BLVD., ENGLEWOOD CO 80112

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