Lions Gate Entertainment (Lions Gate Entertainment) Interest Coverage : 1.28 (As of Dec. 2023)

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Lions Gate Entertainment Interest Coverage Definition

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. Lions Gate Entertainment's Operating Income for the three months ended in Dec. 2023 was $76 Mil. Lions Gate Entertainment's Interest Expense for the three months ended in Dec. 2023 was $-60 Mil. Lions Gate Entertainment's interest coverage for the quarter that ended in Dec. 2023 was 1.28. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Lions Gate Entertainment Corps earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

LGF.B' s Interest Coverage Range Over the Past 10 Years
Min: 0.38 Med: 1.09 Max: 5.87
Current: 0.86

LGF.B's Interest Coverage is ranked worse than
94.11% of 611 companies
in the Media - Diversified industry
Industry Median: 11.96 vs LGF.B: 0.86

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

Lions Gate Entertainment Interest Coverage Historical Data

The historical data trend for Lions Gate Entertainment'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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Lions Gate Entertainment Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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1.27

0.42

1.09

0.48

0.38

Lions Gate Entertainment Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															1.88	0.70	0.41	1.11	1.28

Competitive Comparison

For the Entertainment subindustry, Lions Gate Entertainment'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.

Lions Gate Entertainment Interest Coverage Distribution

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

* The bar in red indicates where Lions Gate Entertainment's Interest Coverage falls into.

Lions Gate Entertainment 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.

Lions Gate Entertainment's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Lions Gate Entertainment's Interest Expense was $-221 Mil. Its Operating Income was $84 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,978 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	83.9	/	-221.2
	=	0.38

Lions Gate Entertainment's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Lions Gate Entertainment's Interest Expense was $-60 Mil. Its Operating Income was $76 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,238 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	76.2	/	-59.6
	=	1.28

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

Lions Gate Entertainment (NYSE:LGF.B) 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 .

Lions Gate Entertainment Interest Coverage Related Terms

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

Lions Gate Entertainment (Lions Gate Entertainment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Lions Gate Entertainment Corp (NYSE:LGF.B) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

LGF.A:USA LGNA:Germany LGNA:Germany

Address

250 Howe Street, 20th Floor, Vancouver, BC, CAN, V6C 3R8

Website

https://www.lionsgate.com

Lions Gate Entertainment Corp is engaged in entertainment business. The company's segment includes Motion Picture, Television Production and Media Networks. It generates maximum revenue from the Television Production segment. Television Production segment consists of the development, production and worldwide distribution of television productions including television series, television movies and mini-series, and non-fiction programming.

Executives

Harkey John D Jr	director	305 MAIN STREET, REDWOOD CITY CA 94063
Bruce Tobey	officer: General Counsel	LIONSGATE, 2700 COLORADO AVENUE, SANTA MONICA CA 90404
James W Barge	officer: Chief Financial Officer	VIACOM INC., 1515 BROADWAY, NEW YORK NY 10036
Gordon Crawford	director	LIONSGATE, 2700 COLORADO AVENUE, SANTA MONICA CA 90404
Harry Sloan	director, other: Chairman of the Board	1450 2ND STREET, SUITE 247, SANTA MONICA CA 90401
Mignon L Clyburn	director	12601 PLANTSIDE DRIVE, LOUISVILLE KY 40299
Berg Corii D.	officer: General Counsel	LIONSGATE, 2700 COLORADO AVENUE, SANTA MONICA CA 90404
Yvette Ostolaza	director	LIONSGATE, 2700 COLORADO AVENUE, SANTA MONICA CA 90404
Daniel E. Sanchez	director	C/O DISCOVERY, INC., 8403 COLESVILLE ROAD, SILVER SPRING MD 20910
Susan Mccaw	director	LIONSGATE, 2700 COLORADO AVENUE, SANTA MONICA CA 90404
Michael Raymond Burns	director, officer: Vice Chairman	2700 COLORADO AVENUE, STE 200, SANTA MONICA CA 90404
John C Malone	director	12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Brian Goldsmith	officer: Chief Operating Officer	LIONS GATE ENTERTAINMENT CORP., 2700 COLORADO AVENUE, SANTA MONICA CA 90292
Mhr Institutional Advisors Iii Llc	10 percent owner	40 WEST 57 STREET, 24TH FLOOR, NEW YORK NY 10019
Mhr Institutional Partners Iii Lp	10 percent owner	40 WEST 57TH STREET, 24TH FLOOR, NEW YORK NY 10019