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Qualcomm Interest Coverage

: 15.91 (As of Jun. 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. Qualcomm's Operating Income for the three months ended in Jun. 2021 was $2,195 Mil. Qualcomm's Interest Expense for the three months ended in Jun. 2021 was $-138 Mil. Qualcomm's interest coverage for the quarter that ended in Jun. 2021 was 15.91. The higher the ratio, the stronger the company's financial strength is.

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

NAS:QCOM' s Interest Coverage Range Over the Past 10 Years
Min: 0.81   Med: 32.98   Max: 1510
Current: 17.64

0.81
1510

NAS:QCOM's Interest Coverage is ranked higher than
58% of the 98 Companies
in the Semiconductors industry.

( Industry Median: 247.64 vs. NAS:QCOM: 17.64 )

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


Qualcomm Interest Coverage Historical Data

The historical data trend for Qualcomm'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.

Qualcomm Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.87 5.22 0.81 12.23 10.39

Qualcomm Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 5.47 20.80 17.91 15.36 15.91

Competitive Comparison

For the Semiconductors subindustry, Qualcomm'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.

   

Qualcomm Interest Coverage Distribution

For the Semiconductors industry and Technology sector, Qualcomm's Interest Coverage distribution charts can be found below:

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



Qualcomm 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.

Qualcomm's Interest Coverage for the fiscal year that ended in Sep. 2020 is calculated as

Here, for the fiscal year that ended in Sep. 2020, Qualcomm's Interest Expense was $-602 Mil. Its Operating Income was $6,255 Mil. And its Long-Term Debt & Capital Lease Obligation was $15,226 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2020 )/Interest Expense (A: Sep. 2020 )
=-1*6255/-602
=10.39

Qualcomm's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, Qualcomm's Interest Expense was $-138 Mil. Its Operating Income was $2,195 Mil. And its Long-Term Debt & Capital Lease Obligation was $13,695 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*2195/-138
=15.91

* 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.


Qualcomm  (NAS:QCOM) 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 .


Qualcomm Interest Coverage Related Terms

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


Qualcomm Business Description

Qualcomm logo
Industry
Technology » Semiconductors NAICS : 334118 SIC : 3577
Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and also designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks. The firm is a leader in 5G network technology as well. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors.
Executives
Amon Cristiano R officer: President 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Rosenberg Donald J officer: EVP & General Counsel QUALCOMM INCORPORATED 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Rogers Alexander H officer: EVP & President, QTL 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Modoff Brian officer: EVP, Strategy and M&A 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Thompson James H officer: EVP, Engineering & CTO 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Mollenkopf Steven M director, officer: Chief Executive Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Mclaughlin Mark D director C/O PALO ALTO NETWORKS, INC. 4401 GREAT AMERICA PKWY SANTA CLARA CA 95054
Miller Jamie S director GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Fields Mark director FORD MOTOR COMPANY ONE AMERICAN ROAD DEARBORN MI 48126
Smit Neil director C/O AMERICA ONLINE LATIN AMERICA, INC. 6600 N. ANDREWS AVE., SUITE 400 FT. LAUDERDALE FL 33309
Palkhiwala Akash J. officer: EVP & Chief Financial Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Polek Erin L officer: SVP & Chief Accounting Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Tricoire Jean-pascal director 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Ace Heather S officer: EVP, Human Resources 3721 VALLEY CENTRE DR SUITE 500 SAN DIEGO CA 92130
Rosenfeld Irene B director 110 SE 6TH STREET 20TH FLOOR FORT LAUDERDALE FL 33301

Qualcomm Headlines

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