Avanti Communications Group (LSE:AVN) Interest Coverage: 0 (At Loss) (As of Jun. 2020)


What is Avanti Communications Group Interest Coverage?

Avanti Communications Group LSE:AVN -87.07% Interest Coverage is 0 (At Loss) as of Jun. 2020. The stock has 7 warning signs investors should review.

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. Avanti Communications Group's Operating Income for the six months ended in Jun. 2020 was £-22.61 Mil. Avanti Communications Group's Interest Expense for the six months ended in Jun. 2020 was £-32.20 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


LSE:AVN's Interest Coverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 4.685
* 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.

Avanti Communications Group  (LSE:AVN) 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 .

Avanti Communications Group Interest Coverage Related Terms

Avanti Communications Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for Avanti Communications Group'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.

Avanti Communications Group Interest Coverage Chart

Avanti Communications Group Annual Data
Trend Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Dec19
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

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
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 0.00 0.00 0.00 0.00 0.00

LSE:AVN vs FNGR, FTRCQ, SYTE: Interest Coverage Comparison

For the Telecom Services subindustry, Avanti Communications Group'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.

Avanti Communications Group Interest Coverage vs Telecommunication Services Industry

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

* The bar in red indicates where Avanti Communications Group's Interest Coverage falls into.


Avanti Communications Group 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.

Avanti Communications Group's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, Avanti Communications Group's Interest Expense was £-54.78 Mil. Its Operating Income was £-41.81 Mil. And its Long-Term Debt & Capital Lease Obligation was £332.90 Mil.

Avanti Communications Group did not have earnings to cover the interest expense.

Avanti Communications Group's Interest Coverage for the quarter that ended in Jun. 2020 is calculated as

Here, for the six months ended in Jun. 2020, Avanti Communications Group's Interest Expense was £-32.20 Mil. Its Operating Income was £-22.61 Mil. And its Long-Term Debt & Capital Lease Obligation was £377.93 Mil.

Avanti Communications Group did not have earnings to cover the 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.

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

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 0 (At Loss) mean?
Avanti Communications Group (LSE:AVN) has a Interest Coverage of 0 (At Loss) as of Jun. 2020. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Avanti Communications Group and its competitors.
Is Avanti Communications Group's Interest Coverage too high?
Avanti Communications Group's current Interest Coverage is 0 (At Loss).
How does Avanti Communications Group's Interest Coverage compare to FNGR and FTRCQ?
Avanti Communications Group's Interest Coverage of 0 (At Loss) can be compared against companies in the Telecommunication Services industry. The industry median Interest Coverage is 4.69. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Avanti Communications Group and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avanti Communications Group's current Interest Coverage is 0 (At Loss). 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 Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Avanti Communications Group (LSE:AVN), the current Interest Coverage is 0 (At Loss) 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.