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. Telephone and Data Systems's
Operating Income
for the
three
months ended in Mar. 2026 was $-4 Mil. Telephone and Data Systems's Interest Expense for the
three
months ended in Mar. 2026 was $-5 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 Telephone and Data Systems's Interest Coverage or its related term are showing as below:
TDS'
s Interest Coverage Range Over the Past 10 Years
Min: 0.17 Med: 1.14 Max: 1.67
Current: 0.17
TDS's Interest Coverage is ranked worse than 98.95% of 286
companies
in the Telecommunication Services industry
Industry Median: 4.715
vs TDS: 0.17
Telephone and Data Systems (NYSE:TDS) 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 .
Telephone and Data Systems Interest Coverage Related Terms
Telephone and Data Systems Interest Coverage Historical Data
* 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.
Telephone and Data Systems Interest Coverage Chart
TDS vs AD, LBTYA, LBRDA: Interest Coverage Comparison
For the Telecom Services subindustry, Telephone and Data Systems'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.
Telephone and Data Systems Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telephone and Data Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Telephone and Data Systems's Interest Coverage falls into.
Telephone and Data Systems 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:
Telephone and Data Systems 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.
What does a Interest Coverage of 0 (At Loss) mean?
Telephone and Data Systems (TDS) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Telephone and Data Systems and its competitors. Over the past decade, Telephone and Data Systems' Interest Coverage has ranged from 0.17 to 1.67. According to the industry distribution chart, Telephone and Data Systems ranks #283 out of 286 companies in the Telecommunication Services industry, placing it in the top 99%.
Is Telephone and Data Systems' Interest Coverage too high?
Telephone and Data Systems' current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 1.67. Based on the distribution chart, Telephone and Data Systems ranks #283 out of 286 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Telephone and Data Systems has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' Interest Coverage compare to AD and LBTYA?
According to the Telecommunication Services industry distribution chart, Telephone and Data Systems ranks #283 out of 286 companies for Interest Coverage. This places Telephone and Data Systems in the lower half of its industry. The industry median Interest Coverage is 4.72. Historically, Telephone and Data Systems' own Interest Coverage has ranged from 0.17 to 1.67 over the past decade. 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 4.72, based on 286 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 Telephone and Data Systems and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telephone and Data Systems'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 Telephone and Data Systems stock overvalued right now?
Based on GuruFocus' analysis, Telephone and Data Systems (TDS) is currently considered Modestly Overvalued. The stock's GF Value™ is $32.86, compared to a current price of $37.58 — trading 14.4% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Telephone and Data Systems' overall GF Score™ is 64/100 with 5 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 Telephone and Data Systems (TDS), the current Interest Coverage is 0 (At Loss) as of Mar. 2026. 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.
Is Telephone and Data Systems (TDS) Overvalued in 2026?
Based on GuruFocus' analysis, Telephone and Data Systems stock appears to be overvalued.
The current stock price of $37.58 is trading 14.4% above its estimated GF Value™ of $32.86.
GuruFocus considers Telephone and Data Systems to be Modestly Overvalued.
Key valuation signals for TDS:
Interest Coverage: 0 (At Loss)
GF Value™: $32.86 vs. price of $37.58 (14.4% above fair value)
No single metric tells the full story. See the TDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telephone and Data Systems Inc is a diversified telecommunications operator that provides communications services to customers through broadband, video, voice, and wireless connections. The company has two reportable segments: TDS Telecom and Array. The majority of its revenue is generated from the TDS Telecom segment, which generates revenue by providing broadband, video, voice, and wireless services. The Array segment generates its revenue mainly by leasing tower space on Array-owned towers to customers.
64GF Score
Get the complete analysis for TDS
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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