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Liberty Latin America Interest Coverage

: 1.07 (As of Sep. 2021)
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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 Sep. 2021 was $147 Mil. Liberty Latin America's Interest Expense for the three months ended in Sep. 2021 was $-137 Mil. Liberty Latin America's interest coverage for the quarter that ended in Sep. 2021 was 1.07. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Liberty Latin America Ltd interest coverage is 1.33, which is low.

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

NAS:LILA' s Interest Coverage Range Over the Past 10 Years
Min: 0.89   Med: 1.39   Max: 1.77
Current: 1.33

0.89
1.77

NAS:LILA's Interest Coverage is ranked lower than
53% of the 136 Companies
in the Telecommunication Services industry.

( Industry Median: 4.47 vs. NAS:LILA: 1.33 )

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
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only 1.49 1.43 1.26 1.23 0.89

Liberty Latin America Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 0.69 1.52 1.43 1.33 1.07

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.

   

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 into.



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. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Liberty Latin America's Interest Expense was $-533 Mil. Its Operating Income was $473 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,195 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*472.6/-533.4
=0.89

Liberty Latin America's Interest Coverage for the quarter that ended in Sep. 2021 is calculated as

Here, for the three months ended in Sep. 2021, Liberty Latin America's Interest Expense was $-137 Mil. Its Operating Income was $147 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,443 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*147.1/-137.1
=1.07

* 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.


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 Business Description

Liberty Latin America logo
Industry
Traded in Other Exchanges
Address
2 Church Street, Hamilton, BMU, HM 11
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/Cableticaand Liberty Puerto Rico.
Executives
Zinterhofer Eric Louis director C/O SEARCHLIGHT CAPITAL PARTNERS GP, LP 745 FIFTH AVENUE, 27TH FLOOR NEW YORK NY 10151
Nair Balan director, officer: President and CEO 901 EXPLORER BOULEVARD HUNTSVILLE AL 35806
Sanchez Daniel E. director C/O DISCOVERY, INC. 8403 COLESVILLE ROAD SILVER SPRING MD 20910
Khemka Vivek officer: SVP, CT&PO C/O DISH NETWORK CORPORATION 9601 S MERIDIAN BLVD ENGLEWOOD CO 80112
Fries Michael T director, officer: Executive Chairman C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Noyes Christopher J officer: SVP, CHIEF FINANCIAL OFFICER 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
Malone John C 10 percent owner 12300 LIBERTY BLVD ENGLEWOOD CO 80112
Gould Paul A director 711 FIFTH AVENUE 9TH FLOOR NEW YORK NY 10022
Bracken Charles H R director C/O UPC SERVICES LTD 12 STANHOPE GATE LONDON ENGLAND X0 W1Y 5LB
Kenigsztein Betzalel officer: SVP, CHIEF OPERATING OFFICER 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
Curtis Miranda director C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Winter John M officer: SVP, CLO AND SECRETARY 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
Paddick Brendan J director 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
De Angoitia Alfonso director 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
Zook Brian D officer: MD, CHIEF ACCOUNTING OFFICER 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202

Liberty Latin America Headlines

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