United States Cellular (United States Cellular) Interest Coverage : 0.47 (As of Dec. 2023)

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What is United States Cellular 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. United States Cellular's Operating Income for the three months ended in Dec. 2023 was $23 Mil. United States Cellular's Interest Expense for the three months ended in Dec. 2023 was $-49 Mil. United States Cellular's interest coverage for the quarter that ended in Dec. 2023 was 0.47. The higher the ratio, the stronger the company's financial strength is.

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

USM' s Interest Coverage Range Over the Past 10 Years
Min: 0.45 Med: 1.09 Max: 1.72
Current: 0.78

USM's Interest Coverage is ranked worse than
91.67% of 288 companies
in the Telecommunication Services industry
Industry Median: 4.61 vs USM: 0.78

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

United States Cellular Interest Coverage Historical Data

The historical data trend for United States 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.

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United States Cellular Interest Coverage Chart

United States Cellular Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.18

1.72

1.09

0.55

0.79

United States 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															-	0.77	0.73	1.16	0.47

Competitive Comparison of United States Cellular's Interest Coverage

For the Telecom Services subindustry, United States 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.

United States Cellular's Interest Coverage Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where United States Cellular's Interest Coverage falls into.

United States 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.

United States 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, United States Cellular's Interest Expense was $-196 Mil. Its Operating Income was $154 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,875 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	154	/	-196
	=	0.79

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

Here, for the three months ended in Dec. 2023, United States Cellular's Interest Expense was $-49 Mil. Its Operating Income was $23 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,875 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	23	/	-49
	=	0.47

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

United States Cellular (NYSE:USM) 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 .

United States Cellular Interest Coverage Related Terms

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

United States Cellular (United States Cellular) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » United States Cellular Corp (NYSE:USM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

US7:Germany

Address

8410 West Bryn Mawr, Chicago, IL, USA, 60631

Website

https://www.uscellular.com

U.S. Cellular is a regional wireless carrier that serves about 5 million customers spread across four major geographic clusters: the Midwest, mid-Atlantic, New England, and the Pacific Northwest. These service territories encompass a total population of about 32 million people. The vast majority of the markets the firm serves are rural or second/third-tier cities, with only the greater Milwaukee and Oklahoma City regions boasting populations greater than 1 million. U.S. Cellular also owns a 5.5% stake in Verizon Wireless' Los Angeles operations and, unlike its wireless carrier peers, owns most of its own towers.

Executives

Michael Irizarry	officer: EVP & CTO-Engineering and IS	8410 W BRYN MAWR, CHICAGO IL 60631
Kevin R Lowell	officer: EVP, Chief People Officer	8410 W. BRYN MAWR AVE, CHICAGO IL 60631
Xavier Williams	director	C/O AMERICAN VIRTUAL CLOUD TECHNOLOGIES, 1720 PEACHTREE ST., SUITE 629, ATLANTA GA 30309
James W Butman	director	30 N. LASALLE STREET, STE. 4000, CHICAGO IL 60602
Gregory P Josefowicz	director	850 76TH STREET SW, GRAND RAPIDS MI 49518
Deirdre Drake	officer: SVP-Chief HR Officer	8410 W. BRYN MAWR AVE, CHICAGO IL 60631
Esteban C Iriarte	director	8410 W. BRYN MAWR, CHICAGO IL 60631
Vicki L Villacrez	director	30 N. LASALLE STREET, SUITE 4000, CHICAGO IL 60602
Ronald E Daly	director
J Samuel Crowley	director	8410 WEST BRYN MAWR ST STE 700, CHICAGO IL 60631
Jay Ellison	officer: EVP-Operations
Laurent C Therivel	director, officer: President and CEO	8410 W. BRYN MAWR STREET, CHICAGO IL 60631
Kenneth R Meyers	director, officer: President and CEO
Anita J Kroll	officer: Chief Accounting Officer	30 N. LASALLE STREET, SUITE 4000, CHICAGO IL 60602
Steven T Campbell	director, officer: EVP-Finance, CFO and Treasurer	8410 W. BRYN MAWR, CHICAGO IL 60631