EchoStar (EchoStar) Interest Coverage

: 7.53 (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. EchoStar's Operating Income for the three months ended in Dec. 2023 was $385 Mil. EchoStar's Interest Expense for the three months ended in Dec. 2023 was $-51 Mil. EchoStar's interest coverage for the quarter that ended in Dec. 2023 was 7.53. The higher the ratio, the stronger the company's financial strength is.

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

SATS' s Interest Coverage Range Over the Past 10 Years
Min: 0.22 Med: 2.08 Max: 30.79
Current: 5.35

SATS's Interest Coverage is ranked worse than
69.63% of 1597 companies
in the Hardware industry
Industry Median: 12.72 vs SATS: 5.35

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

EchoStar Interest Coverage Historical Data

The historical data trend for EchoStar'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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EchoStar Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.29

0.77

30.79

28.20

5.35

EchoStar Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																58.04	2.36	3.35	1.75	7.53

Competitive Comparison

For the Communication Equipment subindustry, EchoStar'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.

EchoStar Interest Coverage Distribution

For the Hardware industry and Technology sector, EchoStar's Interest Coverage distribution charts can be found below:

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

EchoStar 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.

EchoStar'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, EchoStar's Interest Expense was $-90 Mil. Its Operating Income was $483 Mil. And its Long-Term Debt & Capital Lease Obligation was $22,839 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	483.19	/	-90.357
	=	5.35

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

Here, for the three months ended in Dec. 2023, EchoStar's Interest Expense was $-51 Mil. Its Operating Income was $385 Mil. And its Long-Term Debt & Capital Lease Obligation was $22,839 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	385.348	/	-51.181
	=	7.53

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

EchoStar (NAS:SATS) 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 .

EchoStar Interest Coverage Related Terms

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

EchoStar (EchoStar) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » EchoStar Corp (NAS:SATS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

E20:Germany E20:Germany

Address

100 Inverness Terrace East, Englewood, CO, USA, 80112-5308

Website

https://www.echostar.com

Following the Dish Network merger, satellite television provides the bulk of EchoStar's revenue. The firm serves about 7 million U.S. customers, about 10% of the traditional television market. It launched an internet-based television offering under the Sling brand in 2015 and serves about 2 million customers on this platform. EchoStar's future, however, hinges primarily on the wireless business. The firm has amassed an extensive portfolio of spectrum licenses over the past 15 years and is building a nationwide wireless network. It acquired Sprint's prepaid business and serves about 8 million customers, primarily under the Boost brand. EchoStar's legacy businesses provide satellite telecom services and equipment to businesses and consumers, including about 1 million internet customers.

Executives

C Mike Schroeder	director	100 INVERNESS TERRACE EAST, ENGLEWOOD CO 80112
Jeffrey R Tarr	director	DIGITALGLOBE, INC., 1300 WEST 120TH AVENUE, WESTMINSTER CO 80234
William David Wade	director	11717 EXPLORATION LANE, GERMANTOWN MD 20876
Lisa W. Hershman	director	PO BOX 1602, SOUTH BEND IN 46634
R Stanton Dodge	director	ECHOSTAR CORPORATION, 100 INVERNESS TERRACE EAST, ENGLEWOOD CO 80112
Ergen Two-year June 2023 Sats Grat	10 percent owner	9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Ergen Two-year June 2022 Sats Grat	10 percent owner	9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Ergen Two-year June 2021 Sats Grat	10 percent owner	9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Pradman P Kaul	director	11717 EXPLORATION LANE, GERMANTOWN MD 20876
Hamid Akhavan	officer: CEO and President	1226 EARNESTINE ST., MCLEAN VA 22101
Ergen Two-year March 2022 Sats Grat	10 percent owner	9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Veronika Takacs	officer: Principal Accounting Officer	11717 EXPLORATION LANE, GERMANTOWN MD 20876
Adrian Morris	officer: Chief Technology Officer	HUGHES COMMUNICATIONS, INC., 11717 EXPLORATION LANE, GERMANTOWN MD 20876
Ramesh Ramaswamy	officer: Executive VP - International	11717 EXPLORATION LANE, GERMANTOWN MD 20876
Michelle Pearre	officer: Chief Human Resources Officer	11717 EXPLORATION LANE, GERMANTOWN MD 20876