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Lumos Networks (Lumos Networks) Interest Coverage : 0.98 (As of Sep. 2017)


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What is Lumos Networks 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. Lumos Networks's Operating Income for the three months ended in Sep. 2017 was $7.6 Mil. Lumos Networks's Interest Expense for the three months ended in Sep. 2017 was $-7.8 Mil. Lumos Networks's interest coverage for the quarter that ended in Sep. 2017 was 0.98. The higher the ratio, the stronger the company's financial strength is.

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


LMOS's Interest Coverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 4.52
* Ranked among companies with meaningful Interest Coverage only.

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


Lumos Networks Interest Coverage Historical Data

The historical data trend for Lumos Networks'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.

Lumos Networks Interest Coverage Chart

Lumos Networks Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Interest Coverage
Get a 7-Day Free Trial 3.46 3.23 3.24 1.83 1.04

Lumos Networks Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 Premium Member Only Premium Member Only 1.29 1.05 - 1.19 0.98

Competitive Comparison of Lumos Networks's Interest Coverage

For the Telecom Services subindustry, Lumos Networks'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.


Lumos Networks's Interest Coverage Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Lumos Networks's Interest Coverage falls into.



Lumos Networks 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.

Lumos Networks's Interest Coverage for the fiscal year that ended in Dec. 2016 is calculated as

Here, for the fiscal year that ended in Dec. 2016, Lumos Networks's Interest Expense was $-28.4 Mil. Its Operating Income was $29.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $454.9 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2016 )/Interest Expense (A: Dec. 2016 )
=-1*29.614/-28.385
=1.04

Lumos Networks's Interest Coverage for the quarter that ended in Sep. 2017 is calculated as

Here, for the three months ended in Sep. 2017, Lumos Networks's Interest Expense was $-7.8 Mil. Its Operating Income was $7.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $388.0 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2017 )/Interest Expense (Q: Sep. 2017 )
=-1*7.616/-7.771
=0.98

* 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.


Lumos Networks  (NAS:LMOS) 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 .


Lumos Networks Interest Coverage Related Terms

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


Lumos Networks (Lumos Networks) Business Description

Traded in Other Exchanges
N/A
Address
Lumos Networks Corp is a fiber-based bandwidth infrastructure and service provider in the Mid-Atlantic region. It provides services to carrier and enterprise customers, including healthcare providers, local government agencies, financial institutions and educational institutions. The principal products and services of the group include Multiprotocol Label Switching based Ethernet, Metro Ethernet, Fiber to the Cell site wireless backhaul and data transport services, wavelength transport services and IP services. The company operates through three segments Data, Residential and Small Business, and RLEC Access of which data segment accounts for major revenue source which include enterprise data, transport and Fiber to the Cell product groups.
Executives
Peter D Aquino director MOTIENT CORP, 300 KNIGHTBRIDGE PARKWAY, LINCOLNSHIRE IL 60069
Shawn Francis Odonnell director 120 ALBANY STREET SUITE 450, TOWER II NEW BRUNSWICK NJ 08901
Robert E Guth director 750 THIRD AVENUE NEW YORK NY 10017
Jerry E Vaughn director US UNWIRED INC 901 LAKESHORE DRIVE LAKE CHARLES LA 70601
Michael Sicoli director 196 VAN BUREN STREET HERNDON VA 20170
Julia B North director 1170 PEACHTREE STR NE, SUITE 2300, ATLANTA GA 30309
Quadrangle Select Partners Ii L P 10 percent owner 375 PARK AVE, NEW YORK NY 10152
Quadrangle Capital Partners Ii-a L P 10 percent owner 375 PARK AVE, NEW YORK NY 10152
Quadrangle Gp Investors Ii Lp 10 percent owner C/O QUADRANGLE GROUP LLC, 375 PARK AVENUE, NEW YORK NY 10152
Qcp Gp Investors Ii Llc 10 percent owner C/O QUADRANGLE GROUP LLC, 1271 AVENUE OF THE AMERICAS, SUITE 43A, NEW YORK NY 10020
Harold L Covert officer: EVP, CFO & Treasurer 400 NORTH MCCARTHY BLVD, MILPITAS CA 95035

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