MasTec (FRA:MY8) Interest Coverage

: 1.07 (As of Dec. 2022)

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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. MasTec's Operating Income for the three months ended in Dec. 2022 was €51 Mil. MasTec's Interest Expense for the three months ended in Dec. 2022 was €-47 Mil. MasTec's interest coverage for the quarter that ended in Dec. 2022 was 1.07. The higher the ratio, the stronger the company's financial strength is.

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

FRA:MY8' s Interest Coverage Range Over the Past 10 Years
Min: 1.07 Med: 6.11 Max: 7.79
Current: 1.11

FRA:MY8's Interest Coverage is ranked worse than
92.01% of 1214 companies
in the Construction industry
Industry Median: 9.34 vs FRA:MY8: 1.11

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

MasTec Interest Coverage Historical Data

The historical data trend for MasTec'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.

* Premium members only.

MasTec Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

5.69

7.67

7.54

7.79

1.11

MasTec Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Interest Coverage																5.41	-	1.30	3.02	1.07

Competitive Comparison

For the Engineering & Construction subindustry, MasTec'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.

Annual Data Quarterly Data

MasTec Interest Coverage Distribution

For the Construction industry and Industrials sector, MasTec's Interest Coverage distribution charts can be found below:

* The bar in red indicates where MasTec's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.

MasTec 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.

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

MasTec's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, MasTec's Interest Expense was €-106 Mil. Its Operating Income was €118 Mil. And its Long-Term Debt & Capital Lease Obligation was €3,064 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	118.11327999981	/	-105.96871999983
	=	1.11

MasTec's Interest Coverage for the quarter that ended in Dec. 2022 is calculated as

Here, for the three months ended in Dec. 2022, MasTec's Interest Expense was €-47 Mil. Its Operating Income was €51 Mil. And its Long-Term Debt & Capital Lease Obligation was €3,064 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2022 )	/	Interest Expense (Q: Dec. 2022 )
	=	-1	*	50.671087999919	/	-47.145247999925
	=	1.07

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

MasTec (FRA:MY8) 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 .

MasTec Interest Coverage Related Terms

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

MasTec (FRA:MY8) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » MasTec Inc (FRA:MY8) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MTZ:USA

Address

800 S. Douglas Road, 12th Floor, Coral Gables, FL, USA, 33134

Website

https://www.mastec.com

MasTec Inc is a leading infrastructure construction company operating primarily throughout North America. Its principal activities include engineering, building, installation, maintenance, and upgrades of communications, energy, and utility infrastructure. The company installs wireless, wireline, and satellite communications; oil and gas pipeline infrastructure; conventional and renewable power generation; and other industrial systems. MasTec has five operating segments: Communications, Oil and Gas, Power Delivery, Clean Energy and Infrastructure, and Others. The majority of its revenue is derived from the Communications segments. The company markets services individually and in combination with other companies to provide a wide range of solutions for customers.

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