PT Telkom Indonesia (Persero) Tbk (PT Telkom Indonesia (Persero) Tbk) Interest Coverage

: 8.36 (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. PT Telkom Indonesia (Persero) Tbk's Operating Income for the three months ended in Dec. 2023 was $667 Mil. PT Telkom Indonesia (Persero) Tbk's Interest Expense for the three months ended in Dec. 2023 was $-80 Mil. PT Telkom Indonesia (Persero) Tbk's interest coverage for the quarter that ended in Dec. 2023 was 8.36. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for PT Telkom Indonesia (Persero) Tbk's Interest Coverage or its related term are showing as below:

TLK' s Interest Coverage Range Over the Past 10 Years
Min: 7.92 Med: 10.94 Max: 16.52
Current: 9.65

TLK's Interest Coverage is ranked better than
68.86% of 289 companies
in the Telecommunication Services industry
Industry Median: 4.53 vs TLK: 9.65

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

PT Telkom Indonesia (Persero) Tbk Interest Coverage Historical Data

The historical data trend for PT Telkom Indonesia (Persero) Tbk'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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PT Telkom Indonesia (Persero) Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

7.92

9.54

10.05

11.26

9.65

PT Telkom Indonesia (Persero) Tbk Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																10.73	10.34	9.68	10.31	8.36

Competitive Comparison

For the Telecom Services subindustry, PT Telkom Indonesia (Persero) Tbk'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.

PT Telkom Indonesia (Persero) Tbk Interest Coverage Distribution

For the Telecommunication Services industry and Communication Services sector, PT Telkom Indonesia (Persero) Tbk's Interest Coverage distribution charts can be found below:

* The bar in red indicates where PT Telkom Indonesia (Persero) Tbk's Interest Coverage falls into.

PT Telkom Indonesia (Persero) Tbk 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.

PT Telkom Indonesia (Persero) Tbk'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, PT Telkom Indonesia (Persero) Tbk's Interest Expense was $-304 Mil. Its Operating Income was $2,936 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,764 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2936.495	/	-304.359
	=	9.65

PT Telkom Indonesia (Persero) Tbk's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, PT Telkom Indonesia (Persero) Tbk's Interest Expense was $-80 Mil. Its Operating Income was $667 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,764 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	667.294	/	-79.787
	=	8.36

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

PT Telkom Indonesia (Persero) Tbk (NYSE:TLK) 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 .

PT Telkom Indonesia (Persero) Tbk Interest Coverage Related Terms

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PT Telkom Indonesia (Persero) Tbk (PT Telkom Indonesia (Persero) Tbk) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » PT Telkom Indonesia (Persero) Tbk (NYSE:TLK) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TLKMF:USA TLKM:Indonesia TCID:Germany T1LK34:Brazil

Address

Jalan Japati No. 1, West Java, Bandung, IDN, 40133

Website

https://www.telkom.co.id

PT Telkom Indonesia (Persero) Tbk is the largest integrated telecommunications provider in Indonesia. It is the principal provider of fixed-line services in Indonesia, and its 65%-owned subsidiary, Telkomsel, is the largest wireless carrier in the country, with about 48% market share. It also provides a wide range of other communication services, including telephone network, interconnection services, multimedia, data and internet communication-related services, satellite transponder leasing, leased line, intelligent network and related services, cable television, and VoIP services.