Telstra Group (Telstra Group) Interest Coverage : 4.71 (As of Dec. 2023)

View and export this data going back to 2022. Start your Free Trial

What is Telstra Group 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. Telstra Group's Operating Income for the six months ended in Dec. 2023 was $892 Mil. Telstra Group's Interest Expense for the six months ended in Dec. 2023 was $-189 Mil. Telstra Group's interest coverage for the quarter that ended in Dec. 2023 was 4.71. The higher the ratio, the stronger the company's financial strength is.

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

TTRAF' s Interest Coverage Range Over the Past 10 Years
Min: 0.86 Med: 5.14 Max: 7.3
Current: 5.22

TTRAF's Interest Coverage is ranked better than
55.56% of 288 companies
in the Telecommunication Services industry
Industry Median: 4.61 vs TTRAF: 5.22

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

Telstra Group Interest Coverage Historical Data

The historical data trend for Telstra Group'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.

Telstra Group Interest Coverage Chart

Telstra Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

Get a 7-Day Free Trial

2.97

0.86

2.55

4.56

5.19

Telstra Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															2.95	6.73	4.61	5.75	4.71

Competitive Comparison of Telstra Group's Interest Coverage

For the Telecom Services subindustry, Telstra Group'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.

Telstra Group's Interest Coverage Distribution in the Telecommunication Services Industry

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

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

Telstra Group 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.

Telstra Group's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Telstra Group's Interest Expense was $-356 Mil. Its Operating Income was $1,851 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,561 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	1851.007	/	-356.376
	=	5.19

Telstra Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Telstra Group's Interest Expense was $-189 Mil. Its Operating Income was $892 Mil. And its Long-Term Debt & Capital Lease Obligation was $9,120 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	891.566	/	-189.424
	=	4.71

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

Telstra Group (OTCPK:TTRAF) 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 .

Telstra Group Interest Coverage Related Terms

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

Telstra Group (Telstra Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telstra Group Ltd (OTCPK:TTRAF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TLGPY:USA 5KBA:Germany TLS:Australia

Address

242 Exhibition Street, Level 41, Melbourne, VIC, AUS, 3000

Website

https://www.telstra.com.au

Telstra is Australia's biggest telecommunications group, with material market shares in voice, mobile, data and internet, spanning retail, corporate and wholesale segments. Its fixed-line copper network will gradually be wound down as the government-owned National Broadband Network rolls out to all Australian households, but the group will be compensated accordingly. Investments into network applications and services, media, technology and overseas are being made to replace the expected lost fixed-line earnings longer term, while continuing cost-cuts are also critical.