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NeuStar (NeuStar) Interest Coverage : 6.61 (As of Mar. 2017)


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What is NeuStar 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. NeuStar's Operating Income for the three months ended in Mar. 2017 was $77 Mil. NeuStar's Interest Expense for the three months ended in Mar. 2017 was $-12 Mil. NeuStar's interest coverage for the quarter that ended in Mar. 2017 was 6.61. The higher the ratio, the stronger the company's financial strength is.

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


NSR's Interest Coverage is not ranked *
in the Business Services industry.
Industry Median: 13.34
* 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.


NeuStar Interest Coverage Historical Data

The historical data trend for NeuStar'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.

NeuStar Interest Coverage Chart

NeuStar Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.09 12.10 10.51 10.16 4.78

NeuStar Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 3.89 4.47 4.42 6.63 6.61

Competitive Comparison of NeuStar's Interest Coverage

For the Specialty Business Services subindustry, NeuStar'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.


NeuStar's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, NeuStar's Interest Coverage distribution charts can be found below:

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



NeuStar 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.

NeuStar's Interest Coverage for the fiscal year that ended in Dec. 2016 is calculated as

Here, for the fiscal year that ended in Dec. 2016, NeuStar's Interest Expense was $-61 Mil. Its Operating Income was $292 Mil. And its Long-Term Debt & Capital Lease Obligation was $703 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2016 )/Interest Expense (A: Dec. 2016 )
=-1*292.022/-61.155
=4.78

NeuStar's Interest Coverage for the quarter that ended in Mar. 2017 is calculated as

Here, for the three months ended in Mar. 2017, NeuStar's Interest Expense was $-12 Mil. Its Operating Income was $77 Mil. And its Long-Term Debt & Capital Lease Obligation was $643 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2017 )/Interest Expense (Q: Mar. 2017 )
=-1*76.938/-11.646
=6.61

* 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.


NeuStar  (NYSE:NSR) 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 .


NeuStar Interest Coverage Related Terms

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


NeuStar (NeuStar) Business Description

Traded in Other Exchanges
N/A
Address
NeuStar provides clearinghouse services to the telecom industry, making interoperability possible for competing communication service providers. It operates the authoritative directories containing all the phone area codes and numbers in North America, facilitates the routing of calls among competing providers, manages top-level Internet domain name services (.biz and . us), and administers U.S. common short codes (shorter phone numbers used for value-added services).
Executives
Hellene S Runtagh director 9 WETHERFIELD COURT, POTOMAC MD 20854
Paul Ballew director 21575 RIDGETOP CIRCLE, STERLING VA 20166
Mark N Greene director 901 MARQUETTE AVENUE, SUITE 3200, MINNEAPOLIS MN 55402
Michael J Rowny director 5329 WOODLAWN AVENUE, CHEVY CHASE MD 20815
Paul S Lalljie officer: Senior Vice President and CFO 7900 HARKINS ROAD, LANHAM MD 20706
Henry Skorny officer: SVP, IOT 2601 ELLIOTT AVENUE, SUITE 1000, SEATTLE WA 98121
Ross K Ireland director 175 E HOUSTON ST ROOM 216, SAN ANTONIO TX 78205
Paul A Lacouture director 46000 CENTER OAK PLAZA, STERLING VA 20166
Deborah Rieman director ONE RIVERFRONT PLAZA, CORNING NY 14831
Joel P Friedman director C/O ACCENTURE LEGAL & COMMERICAL GROUP, 23RD FL 161 N CLARK STREET, CHICAGO IL 60601
Lisa Hook director, officer: President and CEO NEUSTAR, INC. - C/O DENIS CURRAN, 46000 CENTER OAK PLAZA, STERLING VA 20166
James Cullen director 5301 STEVENS CREEK BLVD, MS 1A-LC, SANTA CLARA CA 95051
Brian Foster officer: SVP, Information Services 21575 RIDGETOP CIRCLE STERLING VA 20166
Chang Gareth C C director C/O MALLINCKRODT GROUP INC, 7733 FORSYTH BLVD, ST LOUIS MO 63105
Matthew Levin officer: SVP, Business Affairs NEUSTAR, INC., 4600 CENTER OAK PLAZA, STERLING VA 20166

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