Liberty Latin America (NAS:LILA) Interest Coverage

: 1.21 (As of Jun. 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. Liberty Latin America's Operating Income for the three months ended in Jun. 2023 was $180 Mil. Liberty Latin America's Interest Expense for the three months ended in Jun. 2023 was $-149 Mil. Liberty Latin America's interest coverage for the quarter that ended in Jun. 2023 was 1.21. 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. Liberty Latin America Ltd interest coverage is 1.07, which is low.

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

LILA' s Interest Coverage Range Over the Past 10 Years
Min: 0.75 Med: 1.35 Max: 1.77
Current: 1.07

LILA's Interest Coverage is ranked worse than
87.38% of 301 companies
in the Telecommunication Services industry
Industry Median: 5.17 vs LILA: 1.07

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

Liberty Latin America Interest Coverage Historical Data

The historical data trend for Liberty Latin America'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.

Liberty Latin America Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

1.26

1.15

0.75

1.35

1.24

Liberty Latin America Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Interest Coverage																1.51	1.06	0.99	1.00	1.21

Competitive Comparison

For the Telecom Services subindustry, Liberty Latin America'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

Liberty Latin America Interest Coverage Distribution

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

* The bar in red indicates where Liberty Latin America'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.

Liberty Latin America 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.

Liberty Latin America'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, Liberty Latin America's Interest Expense was $-557 Mil. Its Operating Income was $692 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,654 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	692.2	/	-556.7
	=	1.24

Liberty Latin America's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the three months ended in Jun. 2023, Liberty Latin America's Interest Expense was $-149 Mil. Its Operating Income was $180 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,643 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	180.3	/	-149.1
	=	1.21

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

Liberty Latin America (NAS:LILA) 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 .

Liberty Latin America Interest Coverage Related Terms

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

Liberty Latin America (NAS:LILA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Liberty Latin America Ltd (NAS:LILA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

LILAB:USA LILAK:USA 1LLC:Germany

Address

2 Church Street, Hamilton, BMU, HM 11

Website

https://www.lla.com

Liberty Latin America Ltd is a telecommunications company. It is a provider of video, broadband internet, fixed-line telephony and mobile services to residential and business customers. The company's reportable segments include C&W Caribbean and Networks, C&W Panama, VTR, Liberty Puerto Rico and Costa Rica.

Executives

Eric Louis Zinterhofer	director	C/O SEARCHLIGHT CAPITAL PARTNERS GP, LP, 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Balan Nair	director, officer: President and CEO	901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806
Daniel E. Sanchez	director	C/O DISCOVERY, INC., 8403 COLESVILLE ROAD, SILVER SPRING MD 20910
Vivek Khemka	officer: SVP, CT&PO	C/O DISH NETWORK CORPORATION, 9601 S MERIDIAN BLVD, ENGLEWOOD CO 80112
Michael T Fries	director, officer: Executive Chairman	C/O LIBERTY GLOBAL, INC., 1550 WEWATTA STREET STE 1000, DENVER CO 80202
Christopher J Noyes	officer: SVP, CHIEF FINANCIAL OFFICER	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
John C Malone	10 percent owner	12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Paul A Gould	director	711 FIFTH AVENUE, 9TH FLOOR, NEW YORK NY 10022
Bracken Charles H R	director	161 HAMMERSMITH ROAD, LONDON ENGLAND X0 W6 8BS
Betzalel Kenigsztein	officer: SVP, CHIEF OPERATING OFFICER	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Miranda Curtis	director	C/O LIBERTY GLOBAL, INC., 1550 WEWATTA STREET STE 1000, DENVER CO 80202
John M Winter	officer: SVP, CLO AND SECRETARY	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Brendan J Paddick	director	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Angoitia Alfonso De	director	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Brian D Zook	officer: MD, CHIEF ACCOUNTING OFFICER	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202