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Kuwait Telecommunications Co KSC (KUW:STC) Interest Coverage : 16.93 (As of Mar. 2025)


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What is Kuwait Telecommunications Co KSC 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. Kuwait Telecommunications Co KSC's Operating Income for the three months ended in Mar. 2025 was KWD9.9 Mil. Kuwait Telecommunications Co KSC's Interest Expense for the three months ended in Mar. 2025 was KWD-0.6 Mil. Kuwait Telecommunications Co KSC's interest coverage for the quarter that ended in Mar. 2025 was 16.93. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Kuwait Telecommunications Co KSC's Interest Coverage or its related term are showing as below:

KUW:STC' s Interest Coverage Range Over the Past 10 Years
Min: 11.08   Med: 25.18   Max: 446.06
Current: 13.52


KUW:STC's Interest Coverage is ranked better than
76.27% of 295 companies
in the Telecommunication Services industry
Industry Median: 4.91 vs KUW:STC: 13.52

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


Kuwait Telecommunications Co KSC Interest Coverage Historical Data

The historical data trend for Kuwait Telecommunications Co KSC'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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Kuwait Telecommunications Co KSC Interest Coverage Chart

Kuwait Telecommunications Co KSC Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.38 11.08 22.95 16.90 12.65

Kuwait Telecommunications Co KSC Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 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 13.20 13.01 13.99 10.37 16.93

Competitive Comparison of Kuwait Telecommunications Co KSC's Interest Coverage

For the Telecom Services subindustry, Kuwait Telecommunications Co KSC'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.


Kuwait Telecommunications Co KSC's Interest Coverage Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Kuwait Telecommunications Co KSC's Interest Coverage falls into.


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Kuwait Telecommunications Co KSC 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.

Kuwait Telecommunications Co KSC'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, Kuwait Telecommunications Co KSC's Interest Expense was KWD-2.6 Mil. Its Operating Income was KWD32.6 Mil. And its Long-Term Debt & Capital Lease Obligation was KWD26.1 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*32.561/-2.574
=12.65

Kuwait Telecommunications Co KSC's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Kuwait Telecommunications Co KSC's Interest Expense was KWD-0.6 Mil. Its Operating Income was KWD9.9 Mil. And its Long-Term Debt & Capital Lease Obligation was KWD32.7 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*9.937/-0.587
=16.93

* 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.


Kuwait Telecommunications Co KSC  (KUW:STC) 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 .


Kuwait Telecommunications Co KSC Interest Coverage Related Terms

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


Kuwait Telecommunications Co KSC Business Description

Traded in Other Exchanges
N/A
Address
Al-Khansa Street, P.O. Box. 181, Olympia Building, Salmiya, KWT, 22002
Kuwait Telecommunications Co KSC is a telecommunication service provider. The company provides internet access using 4G LTE technology, and 5G technology. The principal activities of the company are to purchase, supply, install, operate, and maintain wireless telecommunication devices and equipment. The company offers numerous opportunities in the field of telecommunications, entertainment, information, digital, and data transfer services.