MTN Nigeria Communications (NSA:MTNN) Interest Coverage : 2.44 (As of Mar. 2025)

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What is MTN Nigeria 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. MTN Nigeria Communications's Operating Income for the three months ended in Mar. 2025 was ₦342,887 Mil. MTN Nigeria Communications's Interest Expense for the three months ended in Mar. 2025 was ₦-140,724 Mil. MTN Nigeria Communications's interest coverage for the quarter that ended in Mar. 2025 was 2.44. 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. MTN Nigeria Communications PLC interest coverage is 1.97, which is low.

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

NSA:MTNN' s Interest Coverage Range Over the Past 10 Years
Min: 1.82 Med: 3.51 Max: 6.59
Current: 1.97

NSA:MTNN's Interest Coverage is ranked worse than
77.21% of 294 companies
in the Telecommunication Services industry
Industry Median: 4.755 vs NSA:MTNN: 1.97

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

MTN Nigeria Communications Interest Coverage Historical Data

The historical data trend for MTN Nigeria 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.

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MTN Nigeria Communications Interest Coverage Chart

MTN Nigeria Communications Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

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3.27

4.30

5.11

3.43

1.82

MTN Nigeria Communications 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															1.97	2.26	1.12	2.33	2.44

Competitive Comparison of MTN Nigeria Communications's Interest Coverage

For the Telecom Services subindustry, MTN Nigeria 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.

MTN Nigeria Communications's Interest Coverage Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where MTN Nigeria Communications's Interest Coverage falls into.

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MTN Nigeria 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.

MTN Nigeria Communications'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, MTN Nigeria Communications's Interest Expense was ₦-422,942 Mil. Its Operating Income was ₦769,984 Mil. And its Long-Term Debt & Capital Lease Obligation was ₦2,634,334 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	769984	/	-422942
	=	1.82

MTN Nigeria Communications's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, MTN Nigeria Communications's Interest Expense was ₦-140,724 Mil. Its Operating Income was ₦342,887 Mil. And its Long-Term Debt & Capital Lease Obligation was ₦2,744,205 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	342887	/	-140724
	=	2.44

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

MTN Nigeria Communications (NSA:MTNN) 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 .

MTN Nigeria Communications Interest Coverage Related Terms

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

MTN Nigeria Communications Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » MTN Nigeria Communications PLC (NSA:MTNN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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Address

4 Aromire Road, Off Alfred Rewane, Ikoyi, Lagos, NGA

Website

https://www.mtn.ng

MTN Nigeria Communications PLC is a provider of communications services. The principal activities of the company are the provision of broadband fixed wireless access service, mobile broadband solutions, and fibre-to-the-home connectivity. The group operates in three reportable segments, namely, Consumer Business Unit (CBU) which consists of subscribers sitting in value propositions and tariff plans for Youth, High Value and Mass segments, Enterprise Business Unit (EBU) consists of small and medium organizations to whom the services are provided, and Wholesale Business Unit (WBU) serves customers who buy MTN telecom products. The majority of the revenue is generated from the CBU segment.

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