GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Millicom International Cellular SA (NAS:TIGO) » Definitions » Interest Coverage
中文

Millicom International Cellular (Millicom International Cellular) Interest Coverage : 1.39 (As of Dec. 2023)


View and export this data going back to 2003. Start your Free Trial

Millicom International Cellular 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. Millicom International Cellular's Operating Income for the three months ended in Dec. 2023 was $207 Mil. Millicom International Cellular's Interest Expense for the three months ended in Dec. 2023 was $-149 Mil. Millicom International Cellular's interest coverage for the quarter that ended in Dec. 2023 was 1.39. The higher the ratio, the stronger the company's financial strength is.

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

TIGO' s Interest Coverage Range Over the Past 10 Years
Min: 0.51   Med: 1.28   Max: 2.17
Current: 1.3


TIGO's Interest Coverage is ranked worse than
84.48% of 290 companies
in the Telecommunication Services industry
Industry Median: 4.56 vs TIGO: 1.30

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


Millicom International Cellular Interest Coverage Historical Data

The historical data trend for Millicom International Cellular'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.

Millicom International Cellular Interest Coverage Chart

Millicom International Cellular Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.86 0.51 0.92 1.58 1.30

Millicom International Cellular 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 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 1.61 1.23 1.26 1.31 1.39

Competitive Comparison of Millicom International Cellular's Interest Coverage

For the Telecom Services subindustry, Millicom International Cellular'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.


Millicom International Cellular's Interest Coverage Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Millicom International Cellular's Interest Coverage falls into.



Millicom International Cellular 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.

Millicom International Cellular'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, Millicom International Cellular's Interest Expense was $-594 Mil. Its Operating Income was $773 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,330 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*773/-594
=1.30

Millicom International Cellular's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Millicom International Cellular's Interest Expense was $-149 Mil. Its Operating Income was $207 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,330 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*207/-149
=1.39

* 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.


Millicom International Cellular  (NAS:TIGO) 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 .


Millicom International Cellular Interest Coverage Related Terms

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


Millicom International Cellular (Millicom International Cellular) Business Description

Address
2, Rue du Fort Bourbon, Luxembourg, LUX, L-1249
Millicom offers wireless and fixed-line telecom services primarily in smaller, less congested markets or in less developed countries in Latin America. Countries served include Bolivia (100% owned), Nicaragua (100%), Panama (100%), El Salvador (100%), Guatemala (100%), Paraguay (100%), Colombia (50%), Costa Rica (100%) and Honduras (67% but not controlled or consolidated in the firm's financial statements). The firm's fixed-line networks reach nearly 13 million homes while its wireless networks cover about 120 million people. Increasingly, Millicom offers a converged package that may include fixed-line phone, broadband, and pay television in conjunction with wireless services. The firm plans to carve out its infrastructure assets and mobile financial services business in 2023.

Millicom International Cellular (Millicom International Cellular) Headlines