Avanti Communications Group (LSE:AVN) Effective Interest Rate on Debt %: 13.63% (As of Jun. 2020)

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What is Avanti Communications Group Effective Interest Rate on Debt %?

Avanti Communications Group LSE:AVN -87.07% Effective Interest Rate on Debt % is 13.63% as of Jun. 2020. The stock has 7 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Avanti Communications Group's annualized positive value of Interest Expense for the quarter that ended in Jun. 2020 was £64.40 Mil. Avanti Communications Group's average total debt for the quarter that ended in Jun. 2020 was £472.65 Mil. Therefore, Avanti Communications Group's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2020 was 13.63%.


Avanti Communications Group  (LSE:AVN) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Avanti Communications Group Effective Interest Rate on Debt % Related Terms


Avanti Communications Group Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Avanti Communications Group's Effective Interest Rate on Debt % 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.

Avanti Communications Group Effective Interest Rate on Debt % Chart

Avanti Communications Group Annual Data
Trend Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Dec19
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.01 7.87 7.26 12.07 12.00

Avanti Communications Group Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Jun19 Dec19 Jun20
Effective Interest Rate on Debt % 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 15.04 14.79 13.86 13.75 13.63

LSE:AVN vs FNGR, FTRCQ, SYTE: Effective Interest Rate on Debt % Comparison

For the Telecom Services subindustry, Avanti Communications Group's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.


Avanti Communications Group Effective Interest Rate on Debt % vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Avanti Communications Group's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Avanti Communications Group's Effective Interest Rate on Debt % falls into.



Avanti Communications Group Effective Interest Rate on Debt % Calculation

Avanti Communications Group's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2019 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Jun. 2017 )+Total Debt  (A: Dec. 2019 ))/ count )
=-1  *  -54.783/( (464.461+448.873)/ 2 )
=-1  *  -54.783/456.667
=12.00 %

where

Total Debt  (A: Jun. 2017 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=462.821 + 1.64
=464.461

Total Debt  (A: Dec. 2019 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=332.897 + 115.976
=448.873

Avanti Communications Group's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2020 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2019 )+Total Debt  (Q: Jun. 2020 ))/ count )
=-1  *  -64.4/( (448.873+496.419)/ 2 )
=-1  *  -64.4/472.646
=13.63 %

where

Total Debt  (Q: Dec. 2019 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=332.897 + 115.976
=448.873

Total Debt  (Q: Jun. 2020 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=377.927 + 118.492
=496.419

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is two times the semi-annual (Jun. 2020) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 13.63% mean?
Avanti Communications Group (LSE:AVN) has a Effective Interest Rate on Debt % of 13.63% as of Jun. 2020. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Avanti Communications Group and its competitors.
Is Avanti Communications Group's Effective Interest Rate on Debt % too high?
Avanti Communications Group's current Effective Interest Rate on Debt % is 13.63%.
How does Avanti Communications Group's Effective Interest Rate on Debt % compare to FNGR and FTRCQ?
Avanti Communications Group's Effective Interest Rate on Debt % of 13.63% can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Telecommunication Services company?
A good Effective Interest Rate on Debt % depends on the Telecommunication Services industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Avanti Communications Group and its competitors. Avanti Communications Group's current Effective Interest Rate on Debt % is 13.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avanti Communications Group stock overvalued right now?
Avanti Communications Group (LSE:AVN) has a current Effective Interest Rate on Debt % of 13.63%. The current Effective Interest Rate on Debt % is 13.63%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Avanti Communications Group (LSE:AVN), the current Effective Interest Rate on Debt % is 13.63% as of Jun. 2020. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Avanti Communications Group Business Description

Address 20 Black Friars Lane, Cobham House, London, GBR, EC4V 6EB
Avanti Communications Group PLC sells managed satellite data communications products to service providers on a wholesale basis. It uses the high-frequency Ka-band spectrum. The company's operating segments include Bandwidth and services, and Equipment. Its network can provide download speeds of up to 380Mbps. The company generates its revenues from the utilisation of its space assets, namely its spectrum rights and satellites. These assets include its spectrum rights, satellites, intellectual property, and ground station assets. It serves customers across Europe, the Middle East, and Africa.