Cineworld Group (LSE:CINF) Interest Coverage: 0.31 (As of Jun. 2022) — 96% Below Median


What is Cineworld Group Interest Coverage?

Cineworld Group LSE:CINF 4 Interest Coverage is 0.31 as of Jun. 2022, which is 96% below its 10-year median of 7.98. GuruFocus rates LSE:CINF with a GF Score™ of 4/100. The stock has 6 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. Cineworld Group's Operating Income for the six months ended in Jun. 2022 was £100.36 Mil. Cineworld Group's Interest Expense for the six months ended in Jun. 2022 was £-328.05 Mil. Cineworld Group's interest coverage for the quarter that ended in Jun. 2022 was 0.31. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Cineworld Group 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 Cineworld Group's Interest Coverage or its related term are showing as below:

LSE:CINF' s Interest Coverage Range Over the Past 10 Years
Min: 1.46   Med: 7.98   Max: 16.38
Current: 0.39

LSE:CINF's Interest Coverage is not ranked
in the Media - Diversified industry.
Industry Median: 11.65 vs LSE:CINF: 0.39

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

Cineworld Group  (LSE:CINF) 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 .

Cineworld Group Interest Coverage Related Terms

Cineworld Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for Cineworld 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.

Cineworld Group Interest Coverage Chart

Cineworld Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.38 2.34 1.46 0.00 0.00

Cineworld Group Semi-Annual Data
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22
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 0.48 0.31

LSE:CINF vs NFLX, DIS, WBD: Interest Coverage Comparison

For the Entertainment subindustry, Cineworld 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.

Cineworld Group Interest Coverage vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Cineworld Group's Interest Coverage distribution charts can be found below:

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


Cineworld 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.

Cineworld Group's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Cineworld Group's Interest Expense was £-577.76 Mil. Its Operating Income was £-86.41 Mil. And its Long-Term Debt & Capital Lease Obligation was £6,401.33 Mil.

Cineworld Group did not have earnings to cover the interest expense.

Cineworld Group's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the six months ended in Jun. 2022, Cineworld Group's Interest Expense was £-328.05 Mil. Its Operating Income was £100.36 Mil. And its Long-Term Debt & Capital Lease Obligation was £6,416.83 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*100.363/-328.048
=0.31

* 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 0.31 mean?
Cineworld Group (LSE:CINF) has a Interest Coverage of 0.31 as of Jun. 2022. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cineworld Group and its competitors. This is 96% below median its historical median of 7.98. Over the past decade, Cineworld Group's Interest Coverage has ranged from 1.46 to 16.38.
Is Cineworld Group's Interest Coverage too high?
Cineworld Group's current Interest Coverage of 0.31 is 96% below median its 10-year median of 7.98. Over the past 10 years, this metric has ranged from a low of 1.46 to a high of 16.38. The Media - Diversified industry median Interest Coverage is 11.65. Cineworld Group's value of 0.31 is 97.3% below this industry median. Overall, Cineworld Group has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Cineworld Group's Interest Coverage compare to NFLX and DIS?
Cineworld Group's Interest Coverage of 0.31 can be compared against companies in the Media - Diversified industry. The industry median Interest Coverage is 11.65. Cineworld Group's value of 0.31 is 97.3% below this benchmark. Historically, Cineworld Group's own Interest Coverage has ranged from 1.46 to 16.38 over the past decade. While the company's 10-year median is 7.98 vs. the industry median of 11.65, Cineworld Group has consistently been below the industry average. 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 Media - Diversified company?
The median Interest Coverage among Media - Diversified companies is 11.65, based on 605 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. Cineworld Group's current Interest Coverage of 0.31 is 97.3% below the industry median. 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 Cineworld Group and its competitors. For the Media - Diversified industry, the median Interest Coverage is 11.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cineworld Group's current Interest Coverage is 0.31, which is 96% below median its own 10-year median of 7.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cineworld Group stock overvalued right now?
Cineworld Group (LSE:CINF) has a current Interest Coverage of 0.31. The current Interest Coverage is 0.31, which is 96% below median its 10-year median of 7.98 and 97.3% below the Media - Diversified industry median of 11.65. Cineworld Group's overall GF Score™ is 4/100 with 6 warning signs to review. 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 Cineworld Group (LSE:CINF), the current Interest Coverage is 0.31 as of Jun. 2022. 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.

Cineworld Group Business Description

Address Great West Road, 8th Floor, Vantage London, Brentford, GBR, TW8 9AG
Cineworld Group PLC is a diversified media company, which operates chains of movie theaters. Its business segments are the U.S., U.K., & Ireland and the rest of the world (ROW). Within each segment, it operates theaters through different brands. In the U.S., Cineworld owns cinema brands Regal, United Artists, and Edwards theaters. They operate out of Cineworld and Picturehouse in the U.K. and Ireland. Cineworld also owns Cinema City in Central and Eastern Europe and Yes Planet and Rav-Chen in Israel for its ROW segment. The company generates revenue through ticket sales and food, beverage, and merchandise sales. It also earns additional revenue through retail and screen advertising and property market and development. The company generates most of its revenue in the U.S.