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Net Servicos De Comunicacao (BSP:NETC4.PFD) Interest Coverage : 2.23 (As of Dec. 2013)


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What is Net Servicos De Comunicacao 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. Net Servicos De Comunicacao's Operating Income for the six months ended in Dec. 2013 was R$1,053.80 Mil. Net Servicos De Comunicacao's Interest Expense for the six months ended in Dec. 2013 was R$-471.83 Mil. Net Servicos De Comunicacao's interest coverage for the quarter that ended in Dec. 2013 was 2.23. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Net Servicos De Comunicacao's Interest Coverage or its related term are showing as below:

BSP:NETC4.PFD' s Interest Coverage Range Over the Past 10 Years
Min: 0.17   Med: 1.84   Max: 22.81
Current: 2.23


BSP:NETC4.PFD's Interest Coverage is not ranked
in the Media - Diversified industry.
Industry Median: 11.96 vs BSP:NETC4.PFD: 2.23

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


Net Servicos De Comunicacao Interest Coverage Historical Data

The historical data trend for Net Servicos De Comunicacao'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.

Net Servicos De Comunicacao Interest Coverage Chart

Net Servicos De Comunicacao Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.81 1.83 1.85 3.01 2.23

Net Servicos De Comunicacao Semi-Annual Data
Dec96 Dec97 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
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 22.81 1.83 1.85 3.01 2.23

Competitive Comparison of Net Servicos De Comunicacao's Interest Coverage

For the Broadcasting subindustry, Net Servicos De Comunicacao'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.


Net Servicos De Comunicacao's Interest Coverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Net Servicos De Comunicacao's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Net Servicos De Comunicacao's Interest Coverage falls into.



Net Servicos De Comunicacao 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.

Net Servicos De Comunicacao'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, Net Servicos De Comunicacao's Interest Expense was R$-471.83 Mil. Its Operating Income was R$1,053.80 Mil. And its Long-Term Debt & Capital Lease Obligation was R$1,738.04 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2013 )/Interest Expense (A: Dec. 2013 )
=-1*1053.801/-471.826
=2.23

Net Servicos De Comunicacao's Interest Coverage for the quarter that ended in Dec. 2013 is calculated as

Here, for the six months ended in Dec. 2013, Net Servicos De Comunicacao's Interest Expense was R$-471.83 Mil. Its Operating Income was R$1,053.80 Mil. And its Long-Term Debt & Capital Lease Obligation was R$1,738.04 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2013 )/Interest Expense (Q: Dec. 2013 )
=-1*1053.801/-471.826
=2.23

* 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.


Net Servicos De Comunicacao  (BSP:NETC4.PFD) 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 .


Net Servicos De Comunicacao Interest Coverage Related Terms

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


Net Servicos De Comunicacao (BSP:NETC4.PFD) Business Description

Traded in Other Exchanges
N/A
Address
Net Servicos de Comunicacao SA through its holdings provides pay-television and pay-per-view programming, digital cable, high-definition cable television with digital video recorder, broadband Internet service & fixed line telephony service.

Net Servicos De Comunicacao (BSP:NETC4.PFD) Headlines

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