Shaw Communications (Shaw Communications) Interest Coverage : 4.57 (As of Nov. 2022)

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What is Shaw Communications 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. Shaw Communications's Operating Income for the three months ended in Nov. 2022 was $227 Mil. Shaw Communications's Interest Expense for the three months ended in Nov. 2022 was $-50 Mil. Shaw Communications's interest coverage for the quarter that ended in Nov. 2022 was 4.57. The higher the ratio, the stronger the company's financial strength is.

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

SJR' s Interest Coverage Range Over the Past 10 Years
Min: 3.7 Med: 4.16 Max: 5.31
Current: 4.81

SJR's Interest Coverage is not ranked
in the Telecommunication Services industry.
Industry Median: 4.56 vs SJR: 4.81

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

Shaw Communications Interest Coverage Historical Data

The historical data trend for Shaw Communications'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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Shaw Communications Interest Coverage Chart

Shaw Communications Annual Data

Trend

Aug13

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Interest Coverage

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4.06

3.89

4.18

4.76

4.93

Shaw Communications Quarterly Data
	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22
Interest Coverage	Get a 7-Day Free Trial															5.05	5.03	5.00	4.64	4.57

Competitive Comparison of Shaw Communications's Interest Coverage

For the Telecom Services subindustry, Shaw Communications'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.

Shaw Communications's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Shaw Communications's Interest Coverage distribution charts can be found below:

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

Shaw Communications 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.

Shaw Communications's Interest Coverage for the fiscal year that ended in Aug. 2022 is calculated as

Here, for the fiscal year that ended in Aug. 2022, Shaw Communications's Interest Expense was $-205 Mil. Its Operating Income was $1,012 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,311 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Aug. 2022 )	/	Interest Expense (A: Aug. 2022 )
	=	-1	*	1011.845	/	-205.156
	=	4.93

Shaw Communications's Interest Coverage for the quarter that ended in Nov. 2022 is calculated as

Here, for the three months ended in Nov. 2022, Shaw Communications's Interest Expense was $-50 Mil. Its Operating Income was $227 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,747 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Nov. 2022 )	/	Interest Expense (Q: Nov. 2022 )
	=	-1	*	227.391	/	-49.788
	=	4.57

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

Shaw Communications (NYSE:SJR) 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 .

Shaw Communications Interest Coverage Related Terms

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

Shaw Communications (Shaw Communications) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Shaw Communications Inc (NYSE:SJR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

630 - 3rd Avenue S.W., Suite 900, Finance Department, Calgary, AB, CAN, T2P 4L4

Website

https://www.shaw.ca

Shaw Communications is a Canadian cable company that is one of the biggest providers of internet, television, and landline telephone services in British Columbia, Alberta, Saskatchewan, Manitoba, and northern Ontario. In fiscal 2021, more than 75% of Shaw's total revenue resulted from this wireline business. Shaw now also offers wireless service over most of Canada's population footprint after acquiring Wind Mobile in 2016. As a smaller carrier, Shaw has favored bidding status in spectrum auctions, giving it a further boost in enhancing its wireless network. At the 2019 auction, Shaw added significant amounts of 600 MHz spectrum to the 700 MHz spectrum it is currently deploying.