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Qualcomm (Qualcomm) Interest Coverage : 13.60 (As of Mar. 2024)


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What is Qualcomm 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. Qualcomm's Operating Income for the three months ended in Mar. 2024 was $2,340 Mil. Qualcomm's Interest Expense for the three months ended in Mar. 2024 was $-172 Mil. Qualcomm's interest coverage for the quarter that ended in Mar. 2024 was 13.60. The higher the ratio, the stronger the company's financial strength is.

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

QCOM' s Interest Coverage Range Over the Past 10 Years
Min: 0.81   Med: 14.87   Max: 1510
Current: 11.82


QCOM's Interest Coverage is ranked worse than
60.66% of 633 companies
in the Semiconductors industry
Industry Median: 19.32 vs QCOM: 11.82

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


Qualcomm Interest Coverage Historical Data

The historical data trend for Qualcomm'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.

* Premium members only.

Qualcomm Interest Coverage Chart

Qualcomm Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.23 10.39 17.51 32.37 11.22

Qualcomm Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 11.68 10.58 6.50 16.45 13.60

Competitive Comparison of Qualcomm's Interest Coverage

For the Semiconductors subindustry, Qualcomm'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.


Qualcomm's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Qualcomm's Interest Coverage distribution charts can be found below:

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



Qualcomm 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.

Qualcomm's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Qualcomm's Interest Expense was $-694 Mil. Its Operating Income was $7,788 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,484 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2023 )/Interest Expense (A: Sep. 2023 )
=-1*7788/-694
=11.22

Qualcomm's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Qualcomm's Interest Expense was $-172 Mil. Its Operating Income was $2,340 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,543 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*2340/-172
=13.60

* 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.


Qualcomm  (NAS:QCOM) 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 .


Qualcomm Interest Coverage Related Terms

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


Qualcomm (Qualcomm) Business Description

Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G, 4G, and 5G networks. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones, as well as chips into automotive and Internet of Things markets.
Executives
Cristiano R Amon officer: President 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
James J Cathey officer: Chief Commercial Officer 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Alexander H Rogers officer: EVP & President, QTL 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Neil Martin officer: SVP, Finance and CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
James H Thompson officer: EVP, Qualcomm Technologies Inc 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Jeffrey William Henderson director 7000 CARDINAL PLACE, DUBLIN OH 43017
Erin L Polek officer: SVP Corporate Controller & CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Akash J. Palkhiwala officer: SVP & Interim CFO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Ann C Chaplin officer: General Counsel&Corp Secretary 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Donald J Rosenberg officer: EVP, GC & Corporate Secretary QUALCOMM INCORPORATED, 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Brian Modoff officer: EVP, Strategy and M&A 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Gregory N Johnson director C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Sylvia Acevedo director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Randt Clark T. Jr. director ONE VALMONT PLAZA, 13815 FIRST NATIONAL BANK PARKWAY, OMAHA NE 68154
Jean-pascal Tricoire director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121