Nokia Oyj (Nokia Oyj) Interest Coverage

: N/A (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. Nokia Oyj's Operating Income for the three months ended in Dec. 2023 was $387 Mil. Nokia Oyj's Interest Expense for the three months ended in Dec. 2023 was $0 Mil. GuruFocus does not calculate 's interest coverage with the available data. The higher the ratio, the stronger the company's financial strength is.

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

NOK' s Interest Coverage Range Over the Past 10 Years
Min: 1.24 Med: 4.17 Max: 13.63
Current: 13.63

NOK's Interest Coverage is ranked better than
51.32% of 1592 companies
in the Hardware industry
Industry Median: 12.765 vs NOK: 13.63

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

Nokia Oyj Interest Coverage Historical Data

The historical data trend for Nokia Oyj'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.

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Nokia Oyj Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.62

4.16

8.59

11.09

4.18

Nokia Oyj Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																21.85	22.47	8.80	6.54	N/A

Competitive Comparison

For the Communication Equipment subindustry, Nokia Oyj'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.

Nokia Oyj Interest Coverage Distribution

For the Hardware industry and Technology sector, Nokia Oyj's Interest Coverage distribution charts can be found below:

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

Nokia Oyj 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.

Nokia Oyj'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, Nokia Oyj's Interest Expense was $-390 Mil. Its Operating Income was $1,631 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,838 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1631.407	/	-390.403
	=	4.18

Nokia Oyj's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Nokia Oyj's Interest Expense was $0 Mil. Its Operating Income was $387 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,838 Mil.

GuruFocus does not calculate Nokia Oyj's interest coverage with the available data.

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

Nokia Oyj (NYSE:NOK) 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 .

Nokia Oyj Interest Coverage Related Terms

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Nokia Oyj (Nokia Oyj) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Nokia Oyj (NYSE:NOK) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

NOKBF:USA NOKIA SEK:Sweden NOK N:Mexico NOKIA:Italy 0K8D:UK NOKIAh:UK 0HAF:UK NOKIA:France NOKIA:Finland NOA3:Germany NOAA:Germany NOA3:Germany NOA3:Germany NOAA:Germany NOA3:Germany NOKIA:Czech Republic NOKI34:Brazil NOKI:Austria NOK:Argentina

Address

Karakaari 7, Espoo, FIN, FI-02610

Website

http://www.nokia.com

Nokia provides telecom equipment and services that are used to build wireless and fixed-line networks. It operates in four segments. The mobile networks segment, which sells equipment and services to telecom carriers to power public wireless networks, is the largest, followed closely by network infrastructure. Network infrastructure focuses on fixed networks, including infrastructure, solutions, and components for IP networks, optical networks, and submarine networks. Cloud and network services is a nascent segment catering to enterprises with as-a-service platforms. Nokia also has a sizable research division and patent business, where it licenses technology used by handset providers, consumer electronics firms, and other firms making electronic and Internet of Things products.