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Altice USA Interest Coverage

: 2.17 (As of Sep. 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. Altice USA's Operating Income for the three months ended in Sep. 2021 was $692 Mil. Altice USA's Interest Expense for the three months ended in Sep. 2021 was $-319 Mil. Altice USA's interest coverage for the quarter that ended in Sep. 2021 was 2.17. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Altice USA Inc interest coverage is 2.01, which is low.

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

NYSE:ATUS' s Interest Coverage Range Over the Past 10 Years
Min: 0.48   Med: 1.11   Max: 2.01
Current: 2.01

0.48
2.01

NYSE:ATUS's Interest Coverage is ranked lower than
83% of the 298 Companies
in the Telecommunication Services industry.

( Industry Median: 5.85 vs. NYSE:ATUS: 2.01 )

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


Altice USA Interest Coverage Historical Data

The historical data trend for Altice USA'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.

Altice USA Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
0.48 0.62 1.11 1.23 1.63

Altice USA Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 1.83 1.95 1.93 1.98 2.17

Competitive Comparison

For the Telecom Services subindustry, Altice USA'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.

   

Altice USA Interest Coverage Distribution

For the Telecommunication Services industry and Communication Services sector, Altice USA's Interest Coverage distribution charts can be found below:

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



Altice USA 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.

Altice USA's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Altice USA's Interest Expense was $-1,353 Mil. Its Operating Income was $2,206 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,734 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*2206.362/-1352.535
=1.63

Altice USA's Interest Coverage for the quarter that ended in Sep. 2021 is calculated as

Here, for the three months ended in Sep. 2021, Altice USA's Interest Expense was $-319 Mil. Its Operating Income was $692 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,126 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*692.496/-319.033
=2.17

* 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.


Altice USA  (NYSE:ATUS) 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 .


Altice USA Interest Coverage Related Terms

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


Altice USA Business Description

Altice USA logo
Industry
Traded in Other Exchanges
Address
1 Court Square West, Long Island City, New York, NY, USA, 11101
Altice Europe acquired privately held U.S. cable company Suddenlink in 2015 and Cablevision in 2016. Suddenlink's networks provide television, Internet access, and phone services to roughly 3.5 million U.S. homes and businesses located primarily in smaller markets, with major clusters in Texas, West Virginia, Idaho, Arizona, and Louisiana. Cablevision provides comparable services to about 5.5 million homes and business in the New York City metro area. Altice Europe spun off Altice USA, which includes both the Suddenlink and Cablevision operations, to shareholders in 2018. Altice USA also owns News 12 Networks, which broadcasts local 24-hour news networks in New York, i24News, a news operation focused on the Middle East and Israel, and Cheddar, a news upstart.
Executives
Next Alt S.a.r.l. director, 10 percent owner 5, RUE EUGENE RUPPERT GRAND DUCHY OF LUXEMBOURG N4 L-2453
A4 S.a. director 5, RUE EUGENE RUPPERT GRAND DUCHY OF LUXEMBOURG N4 L-2453
Drahi Patrick director, 10 percent owner WIESTISTRASSE 14 ZERMATT V8 3920
Boubazine Abdelhakim officer: President & COO 1111 STEWART AVENUE BETHPAGE NY 11714
Schmidt Colleen officer: EVP Human Resources 1 COURT SQUARE W LONG ISLAND CITY NY 11101
Olsen Michael officer: EVP, Gen. Counsel & Secy 1 COURT SQUARE W LONG ISLAND CITY NY 11101
Taki Layth officer: Chief Accounting Officer 1 COURT SQUARE WEST LONG ISLAND CITY NY 11101
Grau Michael officer: Chief Financial Officer 1 COURT SQUARE W LONG ISLAND CITY NY 11101
Goei Dexter director, officer: Chief Executive Officer 1111 STEWART AVENUE BETHPAGE NY 11714
Stewart Charles director 1111 STEWART AVENUE BETHPAGE NY 11714
Bakker Gerrit Jan director 15 RUE PIERRE FATIO 6TH FLOOR GENEVA V8 1204
Mullen Mark director 1111 STEWART AVENUE BETHPAGE NY 11714
Okhuijsen Dennis director 1111 STEWART AVENUE BETHPAGE NY 11714
Connolly David other: Former EVP & General Counsel 1111 STEWART AVENUE BETHPAGE NY 11714
Cie Management Ix Ltd 10 percent owner HERITAGE HALL LE MARCHANT STREET ST. PETER PORT Y7 GY14HY

Altice USA Headlines

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