Alaska Communications Systems Group (Alaska Communications Systems Group) Interest Coverage : 1.50 (As of Mar. 2021)

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What is Alaska Communications Systems Group 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. Alaska Communications Systems Group's Operating Income for the three months ended in Mar. 2021 was $4.0 Mil. Alaska Communications Systems Group's Interest Expense for the three months ended in Mar. 2021 was $-2.7 Mil. Alaska Communications Systems Group's interest coverage for the quarter that ended in Mar. 2021 was 1.50. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Alaska Communications Systems Group Inc interest coverage is 1.85, which is low.

The historical rank and industry rank for Alaska Communications Systems Group's Interest Coverage or its related term are showing as below:

ALSK' s Interest Coverage Range Over the Past 10 Years
Min: 0.8 Med: 1.59 Max: 1.97
Current: 1.85

ALSK's Interest Coverage is not ranked
in the Telecommunication Services industry.
Industry Median: 4.61 vs ALSK: 1.85

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

Alaska Communications Systems Group Interest Coverage Historical Data

The historical data trend for Alaska Communications Systems Group'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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Alaska Communications Systems Group Interest Coverage Chart

Alaska Communications Systems Group Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Interest Coverage

Get a 7-Day Free Trial

1.28

1.30

1.82

1.83

1.97

Alaska Communications Systems Group Quarterly Data
	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21
Interest Coverage	Get a 7-Day Free Trial															2.00	2.21	2.20	1.46	1.50

Competitive Comparison of Alaska Communications Systems Group's Interest Coverage

For the Telecom Services subindustry, Alaska Communications Systems Group'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.

Alaska Communications Systems Group's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Alaska Communications Systems Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Alaska Communications Systems Group's Interest Coverage falls into.

Alaska Communications Systems Group 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.

Alaska Communications Systems Group's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Alaska Communications Systems Group's Interest Expense was $-11.0 Mil. Its Operating Income was $21.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $240.7 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2020 )	/	Interest Expense (A: Dec. 2020 )
	=	-1	*	21.686	/	-11
	=	1.97

Alaska Communications Systems Group's Interest Coverage for the quarter that ended in Mar. 2021 is calculated as

Here, for the three months ended in Mar. 2021, Alaska Communications Systems Group's Interest Expense was $-2.7 Mil. Its Operating Income was $4.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $237.3 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2021 )	/	Interest Expense (Q: Mar. 2021 )
	=	-1	*	3.965	/	-2.652
	=	1.50

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

Alaska Communications Systems Group (NAS:ALSK) 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 .

Alaska Communications Systems Group Interest Coverage Related Terms

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

Alaska Communications Systems Group (Alaska Communications Systems Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Alaska Communications Systems Group Inc (NAS:ALSK) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

600 Telephone Avenue, Anchorage, AK, USA, 99503-6091

Website

http://www.alaskacommunications.com

Alaska Communications Systems Group Inc is a US-based fiber broadband and managed information technology services provider. The company is focused primarily on business and wholesale customers in and out of Alaska. It provides local, long-distance, and wireless telephone services, Internet access, and data services to residential and business customers.

Executives

Peter D Ley	director	C/O ALASKA COMMUNICATIONS SYSTEMS 600 TELEPHONE AVENUE, MS#65 ANCHORAGE AK 99503
Leonard Steinberg	officer: SVP, Legal/Reg/Gov & Corp Sec.
Debra Morse	officer: Vice President, HR	C/O ALASKA COMMUNICATIONS SYSTEMS 600 TELEPHONE AVENUE ANCHORAGE AK 99503
Jim Gutcher	officer: VP, Strategy and Product Mgt.	C/O ALASKA COMMUNICATIONS SYSTEMS 600 TELEPHONE AVENUE ANCHORAGE AK 99503
Beth Barnes	officer: VP, Mass Markets and Marketing	C/O ALASKA COMMUNICATIONS SYSTEMS 600 TELEPHONE AVENUE ANCHORAGE AK 99503
Tiffany Hoogerhyde	officer: VP, Finance & Controller	C/O ALASKA COMMUNICATIONS SYSTEMS 600 TELEPHONE AVENUE ANCHORAGE AK 99503
Sean Lindamood	officer: VP, Business Sales	C/O ALASKA COMMUNICATIONS SYSTEMS 600 TELEPHONE AVE. ANCHORAGE AK 99503
Richard Benken	officer: VP Network Strategy	C/O ALASKA COMMUNICATIONS SYSTEMS 600 TELEPHONE AVE ANCHORAGE AK 99503
Aurora David	officer: VP, Information Technology	C/O ALASKA COMMUNICATIONS SYSTEMS 600 TELEPHONE AVE. ANCHORAGE AK 99503
Diedre Williams	officer: SVP, Operations	C/O ALASKA COMMUNICATIONS SYSTEMS 600 TELEPHONE AVE. ANCHORAGE AK 99503
Laurie Butcher	officer: Chief Financial Officer	600 TELEPHONE AVENUE ANCHORAGE AK 99503
William H Bishop	officer: President and CEO	600 TELEPHONE AVE. MS #65 ANCHORAGE AK 99503
Brian A Ross	director	600 TELEPHONE AVE, MS#65, ANCHORAGE AK 99503
Peter D Aquino	director	MOTIENT CORP, 300 KNIGHTBRIDGE PARKWAY, LINCOLNSHIRE IL 60069
Benjamin Duster	director	200 E. 84ST, 8TH FLOOR, NEW YORK NY 10028