GURUFOCUS.COM » STOCK LIST » USA » NYSE » Atlas Corp (NYSE:ATCO) » Definitions » Interest Coverage
Switch to:

Atlas Interest Coverage

: 3.75 (As of Mar. 2022)
View and export this data going back to 2005. Start your Free Trial

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. Atlas's Operating Income for the three months ended in Mar. 2022 was $172 Mil. Atlas's Interest Expense for the three months ended in Mar. 2022 was $-46 Mil. Atlas's interest coverage for the quarter that ended in Mar. 2022 was 3.75. 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. Atlas Corp interest coverage is 3.7, which is low.

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

ATCO' s Interest Coverage Range Over the Past 10 Years
Min: 2.22   Med: 3.19   Max: 5.21
Current: 3.7


ATCO's Interest Coverage is ranked worse than
83.63% of 452 companies
in the Asset Management industry
Industry Median: 62.75 vs ATCO: 3.70

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


Atlas Interest Coverage Historical Data

The historical data trend for Atlas'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.

Atlas Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.49 2.22 3.14 3.01 3.57

Atlas Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 3.19 3.07 4.12 3.94 3.75

Competitive Comparison

For the Asset Management subindustry, Atlas'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.

   

Atlas Interest Coverage Distribution

For the Asset Management industry and Financial Services sector, Atlas's Interest Coverage distribution charts can be found below:

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



Atlas 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.

Atlas'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, Atlas's Interest Expense was $-197 Mil. Its Operating Income was $703 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,533 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*703.4/-197.1
=3.57

Atlas's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the three months ended in Mar. 2022, Atlas's Interest Expense was $-46 Mil. Its Operating Income was $172 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,320 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*171.9/-45.8
=3.75

* 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.


Atlas  (NYSE:ATCO) 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 .


Atlas Interest Coverage Related Terms

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


Atlas Business Description

Atlas logo
Address
23 Berkeley Square, London, GBR, W1J 6HE
Atlas Corp is a global asset manager that owns and operates the businesses in which it invests while focusing on deploying capital across multiple verticals to create sustainable value and quality growth opportunities for its shareholders. The company has two business segments: Containership leasing and Mobile power generation. The containership leasing segment owns and operates a fleet of containerships that are chartered primarily pursuant to long-term, fixed-rate charters. The mobile power generation segment owns and operates a fleet of power generation assets, including gas turbines and other equipment, and provides power solutions to customers.

Atlas Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)