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Turk Hava Yollari AO (IST:THYAO) Interest Coverage

: 5.06 (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. Turk Hava Yollari AO's Operating Income for the three months ended in Dec. 2023 was ₺10,216 Mil. Turk Hava Yollari AO's Interest Expense for the three months ended in Dec. 2023 was ₺-2,020 Mil. Turk Hava Yollari AO's interest coverage for the quarter that ended in Dec. 2023 was 5.06. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Turk Hava Yollari AO's Interest Coverage or its related term are showing as below:

IST:THYAO' s Interest Coverage Range Over the Past 10 Years
Min: 2.77   Med: 4.61   Max: 7.56
Current: 6.09


IST:THYAO's Interest Coverage is ranked better than
52.77% of 813 companies
in the Transportation industry
Industry Median: 5.72 vs IST:THYAO: 6.09

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


Turk Hava Yollari AO Interest Coverage Historical Data

The historical data trend for Turk Hava Yollari AO'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.

Turk Hava Yollari AO Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.77 - 4.37 7.56 5.66

Turk Hava Yollari AO Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 10.43 1.30 5.14 10.00 5.06

Competitive Comparison

For the Airlines subindustry, Turk Hava Yollari AO'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.


Turk Hava Yollari AO Interest Coverage Distribution

For the Transportation industry and Industrials sector, Turk Hava Yollari AO's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Turk Hava Yollari AO's Interest Coverage falls into.



Turk Hava Yollari AO 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.

Turk Hava Yollari AO'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, Turk Hava Yollari AO's Interest Expense was ₺-13,887 Mil. Its Operating Income was ₺78,586 Mil. And its Long-Term Debt & Capital Lease Obligation was ₺310,362 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*78586/-13887
=5.66

Turk Hava Yollari AO's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Turk Hava Yollari AO's Interest Expense was ₺-2,020 Mil. Its Operating Income was ₺10,216 Mil. And its Long-Term Debt & Capital Lease Obligation was ₺310,362 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*10215.908/-2020.435
=5.06

* 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.


Turk Hava Yollari AO  (IST:THYAO) 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 .


Turk Hava Yollari AO Interest Coverage Related Terms

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Turk Hava Yollari AO (IST:THYAO) Business Description

Traded in Other Exchanges
Address
Havaalani Cad. No: 3/1, Genel Yonetim Binasi, 9th Floor, Yesilkoy, Bakirkoy, Istanbul, TUR, 34149
Turk Hava Yollari AO is a Turkish airline operator. It has one of the largest flight networks in the world, and transports passengers to many different regions. Additionally, it can provide long-haul direct cargo flights, and other logistics to serve a diverse range of customers. It has two operating segments: air transportation and aircraft technical maintenance operations. The majority of revenue is generated from transferring passengers and cargo (air transportation segment). The company owns several hangars to perform maintenance on different types of aircraft. Its geographical segments are Asia & Far East, Europe, Americas, Africa, and Middle East.

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