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Telesat Interest Coverage

: 2.20 (As of Dec. 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. Telesat's Operating Income for the six months ended in Dec. 2021 was $322.4 Mil. Telesat's Interest Expense for the six months ended in Dec. 2021 was $-146.9 Mil. Telesat's interest coverage for the quarter that ended in Dec. 2021 was 2.20. 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. Telesat Corp interest coverage is 2.2, which is low.

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

TSAT' s Interest Coverage Range Over the Past 10 Years
Min: 1.77   Med: 1.99   Max: 2.2
Current: 2.2


TSAT's Interest Coverage is ranked worse than
91.15% of 1661 companies
in the Hardware industry
Industry Median: 21.35 vs TSAT: 2.20

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


Telesat Interest Coverage Historical Data

The historical data trend for Telesat'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.

Telesat Annual Data
Trend Dec19 Dec20 Dec21
Interest Coverage
1.77 1.99 2.20

Telesat Semi-Annual Data
Dec19 Dec20 Dec21
Interest Coverage 1.77 1.99 2.20

Competitive Comparison

For the Communication Equipment subindustry, Telesat'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.

   

Telesat Interest Coverage Distribution

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

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



Telesat 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.

Telesat's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Telesat's Interest Expense was $-146.9 Mil. Its Operating Income was $322.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,989.3 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*322.428125/-146.8703125
=2.20

Telesat's Interest Coverage for the quarter that ended in Dec. 2021 is calculated as

Here, for the six months ended in Dec. 2021, Telesat's Interest Expense was $-146.9 Mil. Its Operating Income was $322.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,989.3 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2021 )/Interest Expense (Q: Dec. 2021 )
=-1*322.428125/-146.8703125
=2.20

* 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.


Telesat  (NAS:TSAT) 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 .


Telesat Interest Coverage Related Terms

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


Telesat Business Description

Telesat logo
Traded in Other Exchanges
Address
160 Elgin Street, Ottawa, ON, CAN, K2P 2P7
Telesat Corp is a global satellite operator, providing its customers with mission-critical communications services. The company's segment includes Broadcast; Enterprise and Consulting and other. It generates maximum revenue from the Broadcast segment. The Broadcast segment includes Direct-to-home television, video distribution and contribution, and occasional use services. Geographically, it derives a majority of revenue from Canada.
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