Ziggo NV (XAMS:ZIGGO) Interest Coverage : 2.54 (As of Sep. 2014)

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What is Ziggo NV 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. Ziggo NV's Operating Income for the three months ended in Sep. 2014 was €115 Mil. Ziggo NV's Interest Expense for the three months ended in Sep. 2014 was €-45 Mil. Ziggo NV's interest coverage for the quarter that ended in Sep. 2014 was 2.54. The higher the ratio, the stronger the company's financial strength is.

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

XAMS:ZIGGO' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 1.1
Current: 1.1

XAMS:ZIGGO's Interest Coverage is not ranked
in the Media - Diversified industry.
Industry Median: 11.54 vs XAMS:ZIGGO: 1.10

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

Ziggo NV Interest Coverage Historical Data

The historical data trend for Ziggo NV'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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Ziggo NV Interest Coverage Chart

Ziggo NV Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Interest Coverage

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0.55

0.48

1.05

1.97

2.73

Ziggo NV Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
Interest Coverage	Get a 7-Day Free Trial															3.04	2.02	2.38	0.40	2.54

Competitive Comparison of Ziggo NV's Interest Coverage

For the Broadcasting subindustry, Ziggo NV'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.

Ziggo NV's Interest Coverage Distribution in the Media - Diversified Industry

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

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

Ziggo NV 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.

Ziggo NV's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, Ziggo NV's Interest Expense was €-224 Mil. Its Operating Income was €610 Mil. And its Long-Term Debt & Capital Lease Obligation was €3,073 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2013 )	/	Interest Expense (A: Dec. 2013 )
	=	-1	*	609.612	/	-223.664
	=	2.73

Ziggo NV's Interest Coverage for the quarter that ended in Sep. 2014 is calculated as

Here, for the three months ended in Sep. 2014, Ziggo NV's Interest Expense was €-45 Mil. Its Operating Income was €115 Mil. And its Long-Term Debt & Capital Lease Obligation was €3,256 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2014 )	/	Interest Expense (Q: Sep. 2014 )
	=	-1	*	114.9	/	-45.2
	=	2.54

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

Ziggo NV (XAMS:ZIGGO) 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 .

Ziggo NV Interest Coverage Related Terms

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

Ziggo NV (XAMS:ZIGGO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Ziggo NV (XAMS:ZIGGO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.ziggo.com

Ziggo Holding B.V., formerly Ziggo NV was established on February 1, 2007. The Company is the owner and operator of a broadband cable network in the Netherlands and provides analogue and digital radio and television, broadband internet and telephony services in the Netherlands to 2.9 million households and businesses under the brand name Ziggo. The principal activity of the Company is the exploitation of its broadband cable network. It provides entertainment, information and communication services through television, broadband internet and telephony services. It supplies around 2.8 million households and small businesses with television, almost 2.3 million with digital television, about 1.9 million with broadband and 1.6 million with telephony services. About 1.5 million of the Company's customers are subscribers to its All-in-1 bundle. The Company's competitors include KPN, Telfort and Netflix, among others.

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