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Oi (BSP:OIBR4) Interest Coverage : 0.15 (As of Mar. 2025)


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What is Oi 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. Oi's Operating Income for the three months ended in Mar. 2025 was R$151 Mil. Oi's Interest Expense for the three months ended in Mar. 2025 was R$-1,018 Mil. Oi's interest coverage for the quarter that ended in Mar. 2025 was 0.15. The higher the ratio, the stronger the company's financial strength is.

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


BSP:OIBR4's Interest Coverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 4.715
* Ranked among companies with meaningful Interest Coverage only.

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


Oi Interest Coverage Historical Data

The historical data trend for Oi'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.

Oi Interest Coverage Chart

Oi Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
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Oi Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Interest Coverage 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 - - - - 0.15

Competitive Comparison of Oi's Interest Coverage

For the Telecom Services subindustry, Oi'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.


Oi's Interest Coverage Distribution in the Telecommunication Services Industry

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

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


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Oi 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.

Oi's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Oi's Interest Expense was R$-2,875 Mil. Its Operating Income was R$-3,894 Mil. And its Long-Term Debt & Capital Lease Obligation was R$11,938 Mil.

Oi did not have earnings to cover the interest expense.

Oi's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Oi's Interest Expense was R$-1,018 Mil. Its Operating Income was R$151 Mil. And its Long-Term Debt & Capital Lease Obligation was R$11,078 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*151.142/-1017.616
=0.15

* 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.

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


Oi  (BSP:OIBR4) 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 .


Oi Interest Coverage Related Terms

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


Oi Business Description

Traded in Other Exchanges
Address
Rua Humberto de Campos, 425, Leblon, Rio de Janeiro, RJ, BRA, 22430-190
Oi SA is a provider of telecommunication services. The company's operating segment include Residential; Personal mobility and Other services and business. It generates maximum revenue from the Residential segment. The Residential Services segment focused on the sale of fixed telephony services, including voice services, data communication services (broadband).

Oi Headlines

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