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Orange Belgium (XBRU:OBEL) Interest Coverage : 0.91 (As of Jun. 2024)


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What is Orange Belgium 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. Orange Belgium's Operating Income for the six months ended in Jun. 2024 was €52 Mil. Orange Belgium's Interest Expense for the six months ended in Jun. 2024 was €-57 Mil. Orange Belgium's interest coverage for the quarter that ended in Jun. 2024 was 0.91. 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. Orange Belgium SA interest coverage is 1.15, which is low.

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

XBRU:OBEL' s Interest Coverage Range Over the Past 10 Years
Min: 1.15   Med: 11.93   Max: 23.53
Current: 1.15


XBRU:OBEL's Interest Coverage is ranked worse than
85.21% of 284 companies
in the Telecommunication Services industry
Industry Median: 4.9 vs XBRU:OBEL: 1.15

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


Orange Belgium Interest Coverage Historical Data

The historical data trend for Orange Belgium'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.

Orange Belgium Interest Coverage Chart

Orange Belgium Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.39 14.28 23.53 9.19 1.53

Orange Belgium Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 8.27 9.71 1.89 1.39 0.91

Competitive Comparison of Orange Belgium's Interest Coverage

For the Telecom Services subindustry, Orange Belgium'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.


Orange Belgium's Interest Coverage Distribution in the Telecommunication Services Industry

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

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



Orange Belgium 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.

Orange Belgium's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Orange Belgium's Interest Expense was €-81 Mil. Its Operating Income was €124 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,080 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*123.617/-80.966
=1.53

Orange Belgium's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Orange Belgium's Interest Expense was €-57 Mil. Its Operating Income was €52 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,056 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*51.9/-57.3
=0.91

* 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.


Orange Belgium  (XBRU:OBEL) 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 .


Orange Belgium Interest Coverage Related Terms

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


Orange Belgium Business Description

Traded in Other Exchanges
Address
Avenue du Bourget 3, Brussels, BEL, 1140
Orange Belgium SA is a telecommunications company that provides mobile, fixed telephone, digital TV, and broadband Internet services to households and companies. In terms of products, the majority of revenue comes from mobile services. most of the group's mobile customers are postpaid subscribers. The company also operates in Luxembourg, but overall company revenue comes mostly from Belgium. Orange Belgium owns telecommunications infrastructure, including fiber networks. The company also acts as a wholesaler, allowing mobile virtual network operators access to Orange Belgium's infrastructure.

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