American Tower (American Tower) Interest Coverage

: 3.27 (As of Dec. 2023)

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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. American Tower's Operating Income for the three months ended in Dec. 2023 was $1,147 Mil. American Tower's Interest Expense for the three months ended in Dec. 2023 was $-351 Mil. American Tower's interest coverage for the quarter that ended in Dec. 2023 was 3.27. 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. American Tower Corp interest coverage is 2.7, which is low.

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

AMT' s Interest Coverage Range Over the Past 10 Years
Min: 2.56 Med: 2.7 Max: 3.94
Current: 2.7

AMT's Interest Coverage is ranked worse than
55.1% of 677 companies
in the REITs industry
Industry Median: 3.01 vs AMT: 2.70

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

American Tower Interest Coverage Historical Data

The historical data trend for American Tower'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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American Tower Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.47

3.94

3.82

2.67

2.70

American Tower Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.89	2.28	2.51	2.73	3.27

Competitive Comparison

For the REIT - Specialty subindustry, American Tower'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.

American Tower Interest Coverage Distribution

For the REITs industry and Real Estate sector, American Tower's Interest Coverage distribution charts can be found below:

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

American Tower 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.

American Tower'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, American Tower's Interest Expense was $-1,398 Mil. Its Operating Income was $3,777 Mil. And its Long-Term Debt & Capital Lease Obligation was $43,173 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3776.5	/	-1398.2
	=	2.70

American Tower's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, American Tower's Interest Expense was $-351 Mil. Its Operating Income was $1,147 Mil. And its Long-Term Debt & Capital Lease Obligation was $43,173 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1146.5	/	-350.7
	=	3.27

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

American Tower (NYSE:AMT) 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 .

American Tower Interest Coverage Related Terms

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

American Tower (American Tower) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » American Tower Corp (NYSE:AMT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AMT:Mexico 1AMT:Italy A0T:Germany A0T:Germany T1OW34:Brazil AMTG:Austria

Address

116 Huntington Avenue, 11th Floor, Boston, MA, USA, 02116

Website

https://www.americantower.com

American Tower owns and operates more than 220,000 cell towers throughout the U.S., Asia, Latin America, Europe, and Africa. It also owns and/or operates 28 data centers in 10 U.S. markets after acquiring CoreSite. On its towers, the company has a very concentrated customer base, with most revenue in each market being generated by just the top few mobile carriers. The company operates more than 40,000 towers in the U.S., which accounted for roughly half of the company's total revenue in 2022. Outside the U.S., American Tower operates over 75,000 towers in India, almost 50,000 towers in Latin America (dominated by Brazil), 30,000 towers in Europe, and nearly 25,000 towers in Africa. American Tower operates as an REIT.

Executives

Joann A Reed	director	C/O AMERICAN TOWER CORP, 116 HUNTINGTON AVENUE, BOSTON MA 02116
Eugene M Noel	officer: EVP & President, U.S. Tower	116 HUNTINGTON AVENUE, BOSTON MA 02116
Robert D Hormats	director	85 BROAD STREET, NEW YORK NY 10004
Rodney M Smith	officer: EVP, CFO & Treasurer	116 HUNTINGTON AVENUE, BOSTON MA 02116
Raymond P Dolan	director	108 GOVERNOR DRIVE, BASKING RIDGE NJ 00924
Samme L Thompson	director	C/O TELIT ASSOCIATES, INC., 333 NORTH MICHIGAN AVENUE, CHICAGO IL 60601
Sanjay Goel	officer: EVP & President, Asia-Pacific	116 HUNTINGTON AVENUE, BOSTON MA 02116
Ruth T Dowling	officer: EVP, Chief Admin Ofr, GC & Sec	116 HUNTINGTON AVENUE, BOSTON MA 02116
Reeve Pamela D A	director	C/O AMERICAN TOWER CORPORATION, 116 HUNTINGTON AVE, BOSTON MA 02116
Meyer Robert Joseph Jr	officer: SVP & Chief Accounting Officer	61 SCHOOL STREET, ARLINGTON MA 02476
Edmund Disanto	officer: EVP, Chief Admin Ofr, GC & Sec	C/O AMERICAN TOWER CORPORATION, 116 HUNTINGTON AVENUE, 11TH FLOOR, BOSTON MA 02116
Bruce L Tanner	director	214 N TRYON STREET, CHARLOTTE NC 28202
Kelly C Chambliss	director	C/O CORESITE REALTY CORPORATION, 1001 17TH STREET, SUITE 500, DENVER CO 80202
Teresa Hillary Clarke	director	2850 GOLF ROAD, ROLLING MEADOWS IL 60008
David E Sharbutt	director	116 HUNTINGTON AVENUE, BOSTON MA 02116