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CBWYY (Cable & Wireless Communications) Interest Coverage : 0.98 (As of Sep. 2015)


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What is Cable & Wireless Communications 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. Cable & Wireless Communications's Operating Income for the six months ended in Sep. 2015 was $190.00 Mil. Cable & Wireless Communications's Interest Expense for the six months ended in Sep. 2015 was $-194.00 Mil. Cable & Wireless Communications's interest coverage for the quarter that ended in Sep. 2015 was 0.98. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Cable & Wireless Communications PLCs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Cable & Wireless Communications's Interest Coverage or its related term are showing as below:

CBWYY' s Interest Coverage Range Over the Past 10 Years
Min: 0.48   Med: 1.84   Max: 7.22
Current: 0.48


CBWYY's Interest Coverage is not ranked
in the Telecommunication Services industry.
Industry Median: 4.715 vs CBWYY: 0.48

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


Cable & Wireless Communications Interest Coverage Historical Data

The historical data trend for Cable & Wireless Communications'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.

Cable & Wireless Communications Interest Coverage Chart

Cable & Wireless Communications Annual Data
Trend Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.32 1.84 1.39 0.82 1.11

Cable & Wireless Communications Semi-Annual Data
Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15
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 1.19 - 4.79 - 0.98

Competitive Comparison of Cable & Wireless Communications's Interest Coverage

For the Telecom Services subindustry, Cable & Wireless Communications'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.


Cable & Wireless Communications's Interest Coverage Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Cable & Wireless Communications's Interest Coverage falls into.


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Cable & Wireless Communications 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.

Cable & Wireless Communications's Interest Coverage for the fiscal year that ended in Mar. 2015 is calculated as

Here, for the fiscal year that ended in Mar. 2015, Cable & Wireless Communications's Interest Expense was $-81.00 Mil. Its Operating Income was $90.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,686.00 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2015 )/Interest Expense (A: Mar. 2015 )
=-1*90/-81
=1.11

Cable & Wireless Communications's Interest Coverage for the quarter that ended in Sep. 2015 is calculated as

Here, for the six months ended in Sep. 2015, Cable & Wireless Communications's Interest Expense was $-194.00 Mil. Its Operating Income was $190.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,831.00 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2015 )/Interest Expense (Q: Sep. 2015 )
=-1*190/-194
=0.98

* 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.


Cable & Wireless Communications  (OTCPK:CBWYY) 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 .


Cable & Wireless Communications Interest Coverage Related Terms

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


Cable & Wireless Communications Business Description

Traded in Other Exchanges
N/A
Address
Cable & Wireless Communications PLC was incorporated on January 19, 2010. The Company is a telecommunications service provider. The Company through its subsidiaries, operates integrated telecommunications companies offering mobile, broadband, TV, fixed line and enterprise services to residential and business customers. Its segments are the Panama, LIME, BTC and Seychelles. Its operations are in Panama, The Bahamas, Seychelles and 15 Caribbean markets, including Jamaica, Barbados, Cayman Islands and Trinidad and Tobago.

Cable & Wireless Communications Headlines

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