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. Directv's
Operating Income
for the
three
months ended in Mar. 2015 was €1,282 Mil. Directv's Interest Expense for the
three
months ended in Mar. 2015 was €-226 Mil.
Directv's interest coverage for the quarter that ended in Mar. 2015 was 5.66.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Directv's Interest Coverage or its related term are showing as below:
FRA:DIG1'
s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 5.79
Current: 5.79
FRA:DIG1's Interest Coverage is not ranked
in the Media - Diversified industry.
Industry Median: 11.27
vs FRA:DIG1: 5.79
The historical data trend for Directv'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.
Competitive Comparison of Directv's Interest Coverage
For the Broadcasting subindustry, Directv'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.
Directv's Interest Coverage Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Directv's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Directv's Interest Coverage falls into.
Directv 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:
* 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.
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 .
Directv Interest Coverage Related Terms
Thank you for viewing the detailed overview of Directv's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Directv was incorporated in Delaware in 2009. The Company is a provider of digital television entertainment in the United States and Latin America. It operates two direct-to-home, or DTH, business units: DIRECTV U.S. and DIRECTV Latin America, which are differentiated by their geographic location and are engaged in acquiring, promoting, selling and distributing digital entertainment programming via satellite to residential and commercial subscribers. In addition, the Company owns and operate two regional sports networks, or RSNs, hold a minority ownership interest in ROOT SPORTS Northwest and own a 42% interest in Game Show Network, LLC, or GSN, a television network dedicated to game-related programming and Internet interactive game playing. The Company face substantial competition in the MVPD industry and from emerging digital media distribution providers. Its competition includes companies that offer video, audio, interactive programming, telephony, data and other entertainment services, such as cable television, other DTH companies, telcos, wireless companies and companies that are developing new technologies, including online video distributors. The Company provides services in PanAmericana and Brazil from leased transponders on two geosynchronous satellites. Sky Mexico provides its services from leased transponders on a separate satellite. In addition, it leases a backup satellite that serves Sky Brasil and Sky Mexico. The Company is subject to government regulation in the United States, by the FCC and by other federal, state and local authorities. The Company is subject to similar regulatory agencies in Latin America. It is also subject to the rules and procedures of the International Telecommunication Union, or ITU, a agency of the United Nations, which coordinates telecommunications networks and services.
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