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Vodafone Group Interest Coverage

: 4.34 (As of Sep. 2020)
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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. Vodafone Group's Operating Income for the six months ended in Sep. 2020 was $4,229 Mil. Vodafone Group's Interest Expense for the six months ended in Sep. 2020 was $-975 Mil. Vodafone Group's interest coverage for the quarter that ended in Sep. 2020 was 4.34. The higher the ratio, the stronger the company's financial strength is.

NAS:VOD' s Interest Coverage Range Over the Past 10 Years
Min: 1.49   Med: 2.85   Max: 8.81
Current: 3.4

1.49
8.81

NAS:VOD's Interest Coverage is ranked lower than
62% of the 289 Companies
in the Telecommunication Services industry.

( Industry Median: 5.02 vs. NAS:VOD: 3.40 )

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


Vodafone Group Interest Coverage Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Vodafone Group Annual Data
Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.49 2.50 4.10 2.13 3.19

Vodafone Group Semi-Annual Data
Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20
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 5.43 1.21 3.62 2.97 4.34

Competitive Comparison
* 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.


Vodafone Group Interest Coverage Distribution

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



Vodafone 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.


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

Vodafone Group's Interest Coverage for the fiscal year that ended in Mar. 2020 is calculated as

Here, for the fiscal year that ended in Mar. 2020, Vodafone Group's Interest Expense was $-3,101 Mil. Its Operating Income was $9,888 Mil. And its Long-Term Debt & Capital Lease Obligation was $69,494 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2020 )/Interest Expense (A: Mar. 2020 )
=-1*9888.3977900552/-3100.5524861878
=3.19

Vodafone Group's Interest Coverage for the quarter that ended in Sep. 2020 is calculated as

Here, for the six months ended in Sep. 2020, Vodafone Group's Interest Expense was $-975 Mil. Its Operating Income was $4,229 Mil. And its Long-Term Debt & Capital Lease Obligation was $72,193 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2020 )/Interest Expense (Q: Sep. 2020 )
=-1*4228.5041224971/-975.26501766784
=4.34

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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


Vodafone Group  (NAS:VOD) 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 .


Vodafone Group Interest Coverage Related Terms


Vodafone Group Interest Coverage Headlines

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