SK Telecom Co (SK Telecom Co) Interest Coverage : 2.97 (As of Dec. 2023)

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What is SK Telecom Co 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. SK Telecom Co's Operating Income for the three months ended in Dec. 2023 was $235 Mil. SK Telecom Co's Interest Expense for the three months ended in Dec. 2023 was $-79 Mil. SK Telecom Co's interest coverage for the quarter that ended in Dec. 2023 was 2.97. The higher the ratio, the stronger the company's financial strength is.

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

SKM' s Interest Coverage Range Over the Past 10 Years
Min: 3.56 Med: 5.01 Max: 5.83
Current: 4.59

SKM's Interest Coverage is ranked better than
50% of 290 companies
in the Telecommunication Services industry
Industry Median: 4.56 vs SKM: 4.59

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

SK Telecom Co Interest Coverage Historical Data

The historical data trend for SK Telecom Co'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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SK Telecom Co Interest Coverage Chart

SK Telecom Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3.56

4.48

5.26

5.05

4.59

SK Telecom Co 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															2.71	5.42	4.94	5.19	2.97

Competitive Comparison of SK Telecom Co's Interest Coverage

For the Telecom Services subindustry, SK Telecom Co'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.

SK Telecom Co's Interest Coverage Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where SK Telecom Co's Interest Coverage falls into.

SK Telecom Co 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.

SK Telecom Co'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, SK Telecom Co's Interest Expense was $-299 Mil. Its Operating Income was $1,373 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,639 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1373.135	/	-298.846
	=	4.59

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

Here, for the three months ended in Dec. 2023, SK Telecom Co's Interest Expense was $-79 Mil. Its Operating Income was $235 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,639 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	235.355	/	-79.192
	=	2.97

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

SK Telecom Co (NYSE:SKM) 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 .

SK Telecom Co Interest Coverage Related Terms

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

SK Telecom Co (SK Telecom Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » SK Telecom Co Ltd (NYSE:SKM) » Definitions » Interest Coverage

Traded in Other Exchanges

017670:Korea KMBA:Germany S1KM34:Brazil

Address

SK T-Tower, 65, Eulji-ro, Jung-gu, Seoul, KOR, 04539

Website

https://www.sktelecom.com

SK Telecom is South Korea's largest wireless telecom operator, with 30 million mobile customers. The firm also owns SK Broadband (formerly Hanaro Telecom), which has 6.9 million broadband customers and 9.5 million pay TV customers (6.8 million IPTV and 2.7 million Cable TV). While the firm also purchased stakes in businesses in security and semiconductor memory production as well as developing e-commerce and internet platform businesses, these were all spun off into the separate, SK Square business in November 2021. The company was formed after SK Group purchased KT's mobile business in 1994.