Advanced Disposal Services (Advanced Disposal Services) Interest Coverage : 1.42 (As of Jun. 2020)

View and export this data going back to 2016. Start your Free Trial

What is Advanced Disposal Services 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. Advanced Disposal Services's Operating Income for the three months ended in Jun. 2020 was $28 Mil. Advanced Disposal Services's Interest Expense for the three months ended in Jun. 2020 was $-20 Mil. Advanced Disposal Services's interest coverage for the quarter that ended in Jun. 2020 was 1.42. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Advanced Disposal Services Inc interest coverage is 1, which is low.

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

ADSW' s Interest Coverage Range Over the Past 10 Years
Min: 0.22 Med: 0.86 Max: 1.14
Current: 1

ADSW's Interest Coverage is not ranked
in the Waste Management industry.
Industry Median: 4.875 vs ADSW: 1.00

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

Advanced Disposal Services Interest Coverage Historical Data

The historical data trend for Advanced Disposal Services'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.

* Premium members only.

Advanced Disposal Services Interest Coverage Chart

Advanced Disposal Services Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Interest Coverage

Get a 7-Day Free Trial

0.86

1.04

1.14

1.04

0.77

Advanced Disposal Services Quarterly Data
	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20
Interest Coverage	Get a 7-Day Free Trial															0.36	1.24	0.79	0.61	1.42

Competitive Comparison of Advanced Disposal Services's Interest Coverage

For the Waste Management subindustry, Advanced Disposal Services'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.

Advanced Disposal Services's Interest Coverage Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Advanced Disposal Services's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Advanced Disposal Services's Interest Coverage falls into.

Advanced Disposal Services 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.

Advanced Disposal Services's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, Advanced Disposal Services's Interest Expense was $-101 Mil. Its Operating Income was $78 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,792 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2019 )	/	Interest Expense (A: Dec. 2019 )
	=	-1	*	77.9	/	-100.9
	=	0.77

Advanced Disposal Services's Interest Coverage for the quarter that ended in Jun. 2020 is calculated as

Here, for the three months ended in Jun. 2020, Advanced Disposal Services's Interest Expense was $-20 Mil. Its Operating Income was $28 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,763 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2020 )	/	Interest Expense (Q: Jun. 2020 )
	=	-1	*	28.2	/	-19.8
	=	1.42

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

Advanced Disposal Services (NYSE:ADSW) 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 .

Advanced Disposal Services Interest Coverage Related Terms

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

Advanced Disposal Services (Advanced Disposal Services) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Advanced Disposal Services Inc (NYSE:ADSW) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

90 Fort Wade Road, Suite 200, Ponte Vedra, FL, USA, 32081

Website

https://www.advanceddisposal.com

Advanced Disposal Services Inc provides fresh ideas and solutions to the business of a clean environment. It offers non-hazardous solid waste collection, transfer, recycling and disposal services to the commercial, industrial, municipal and residential customers. It offers other services, such as landfill gas-to-energy operations at municipal solid waste landfills; management of third-party owned landfills; customer service charges relating to overdue payments, and customer administrative fees relating to customers. Geographically, it operates through the Southeast, Midwest and Eastern regions of the United States, as well as from the Commonwealth of the Bahamas.

Executives

Tanuja M Dehne	director	C/O SILVER BAY REALTY TRUST CORP., 601 CARLSON PARKWAY, SUITE 250, MINNETONKA MN 55305
E Renae Conley	director	414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289
B Clyde Preslar	director	305 GREGSON DRIVE, CARY NC 27518
Melissa Westerman	officer: Chief Accounting Officer	5950 HAZELTINE NATIONAL DRIVE, SUITE 650, ORLANDO FL 32822
Burke Richard L. Jr.	director, officer: Chief Exec. Officer & Director	90 FORT WADE ROAD, PONTE VEDRA FL 32081
John S. Spegal	officer: Chief Operating Officer	90 FORT WADE ROAD PONTE VEDRA FL 32081
Steven R. Carn	officer: Executive Vice President & CFO	90 FORT WADE ROAD PONTE VEDRA FL 32081
Michael K Slattery	officer: Senior VP, Gen Coun, Secretary	90 FORT WADE ROAD PONTE VEDRA FL 32081
Michael J Hoffman	director	1400 WEST 94TH STREET, BLOOMINGTON MN 55431
Ernest J Mrozek	director	SERVICE MASTER, 2300 WARRENVILLE ROAD, DOWNERS GROVE IL 60515
Highstar Capital Lp	10 percent owner	277 PARK AVENUE, 45TH FLOOR, NEW YORK NY 10172
Star Atlantic Waste Holdings, L.p.	10 percent owner	277 PARK AVENUE, 45TH FLOOR NEW YORK NY 10172
Star Atlantic Gp, Inc.	10 percent owner	277 PARK AVENUE, 45TH FLOOR NEW YORK NY 10172
Matthew C. Gunnelson	officer: Chief Accounting Officer	90 FORT WADE ROAD PONTE VEDRA FL 32081
William W. Westrate	officer: Chief Administrative Officer	90 FORT WADE ROAD PONTE VEDRA FL 32081