Lumen Technologies (FRA:CYTH) Interest Coverage : 0.46 (As of Dec. 2023)

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What is Lumen Technologies 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. Lumen Technologies's Operating Income for the three months ended in Dec. 2023 was €122 Mil. Lumen Technologies's Interest Expense for the three months ended in Dec. 2023 was €-266 Mil. Lumen Technologies's interest coverage for the quarter that ended in Dec. 2023 was 0.46. 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. Lumen Technologies Inc interest coverage is 1.06, which is low.

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

FRA:CYTH' s Interest Coverage Range Over the Past 10 Years
Min: 1.06 Med: 1.86 Max: 2.82
Current: 1.06

FRA:CYTH's Interest Coverage is ranked worse than
88.62% of 290 companies
in the Telecommunication Services industry
Industry Median: 4.56 vs FRA:CYTH: 1.06

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

Lumen Technologies Interest Coverage Historical Data

The historical data trend for Lumen Technologies'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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Lumen Technologies Interest Coverage Chart

Lumen Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.87

2.16

2.82

2.47

1.06

Lumen Technologies Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															1.81	1.67	1.31	0.83	0.46

Competitive Comparison of Lumen Technologies's Interest Coverage

For the Telecom Services subindustry, Lumen Technologies'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.

Lumen Technologies's Interest Coverage Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Lumen Technologies's Interest Coverage falls into.

Lumen Technologies 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.

Lumen Technologies'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, Lumen Technologies's Interest Expense was €-1,062 Mil. Its Operating Income was €1,128 Mil. And its Long-Term Debt & Capital Lease Obligation was €18,185 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1127.91	/	-1061.886
	=	1.06

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

Here, for the three months ended in Dec. 2023, Lumen Technologies's Interest Expense was €-266 Mil. Its Operating Income was €122 Mil. And its Long-Term Debt & Capital Lease Obligation was €18,185 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	121.961	/	-265.93
	=	0.46

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

Lumen Technologies (FRA:CYTH) 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 .

Lumen Technologies Interest Coverage Related Terms

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

Lumen Technologies (FRA:CYTH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Lumen Technologies Inc (FRA:CYTH) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

LUMN:USA LUMN:Mexico 1CYTH:Italy L1MN34:Brazil

Address

100 CenturyLink Drive, Monroe, LA, USA, 71203

Website

https://www.lumen.com

With 450,000 route miles of fiber, including over 35,000 route miles of subsea fiber connecting Europe, Asia, and Latin America, Lumen Technologies is one of the United States' largest telecommunications carriers serving global enterprises. Its merger with Level 3 in 2017 and divestiture of much of its incumbent local exchange carrier, or ILEC, business in 2022 has shifted the company's operations away from its legacy consumer business and toward enterprises (now nearly 80% of revenue). Lumen offers businesses a full menu of communications services, providing colocation and data center services, data transportation, and end-user phone and internet service. On the consumer side, Lumen provides broadband and phone service across 37 states, where it has 4.5 million broadband customers.