Imax (IMAX) Interest Coverage

: 1.52 (As of Dec. 2023)

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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. Imax's Operating Income for the three months ended in Dec. 2023 was $2.7 Mil. Imax's Interest Expense for the three months ended in Dec. 2023 was $-1.8 Mil. Imax's interest coverage for the quarter that ended in Dec. 2023 was 1.52. The higher the ratio, the stronger the company's financial strength is.

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

IMAX' s Interest Coverage Range Over the Past 10 Years
Min: 1.23 Med: 26.3 Max: 66.44
Current: 7.76

IMAX's Interest Coverage is ranked worse than
58.1% of 611 companies
in the Media - Diversified industry
Industry Median: 11.94 vs IMAX: 7.76

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

Imax Interest Coverage Historical Data

The historical data trend for Imax'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.

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Imax Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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27.71

1.23

7.78

Imax Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	7.17	8.40	15.16	1.52

Competitive Comparison

For the Entertainment subindustry, Imax'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.

Imax Interest Coverage Distribution

For the Media - Diversified industry and Communication Services sector, Imax's Interest Coverage distribution charts can be found below:

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

Imax 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.

Imax's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Imax's Interest Expense was $-6.8 Mil. Its Operating Income was $53.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $229.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	53.077	/	-6.821
	=	7.78

Imax's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Imax's Interest Expense was $-1.8 Mil. Its Operating Income was $2.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $229.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2.708	/	-1.776
	=	1.52

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

Imax (NYSE:IMAX) 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 .

Imax Interest Coverage Related Terms

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Imax (IMAX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Imax Corp (NYSE:IMAX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

IMA:Germany

Address

2525 Speakman Drive, Mississauga, ON, CAN, L5K 1B1

Website

https://www.imax.com

Imax is now primarily a technology hardware and brand-licensing company that does not operate the vast majority of Imax theaters. Instead, the firm generates revenue via selling and leasing the required proprietary equipment and via fees for digitally remastering standard films into the proprietary Imax format. The firm has expanded from 210 commercial theaters in 2008 to over 1,630 today and increased the annual number of Imax releases from 13 in 2007 to 68 in 2028. Roughly 70% of the firm's screens are in China (48%) and the U.S. (22%), but Imax has screens in 87 countries.

Executives

Calamera Pablo	officer: CTO & EVP	C/O IMAX CORPORATION, 902 BROADWAY, FLOOR 20, NEW YORK NY 10010
Kenneth Ian Weissman	officer: Sr VP & Corporate Secretary	902 BROADWAY AVE, 20TH FLOOR, NEW YORK NY 10010-6002
Richard L Gelfond	director, officer: Chief Executive Officer	902 BROADWAY, 20TH FLOOR, IMAX CORPORATION, NEW YORK NY 10010-6002
Denny Tu	officer: Chief Marketing Officer	12582 WEST MILLENNIUM DRIVE, PLAYA VISTA CA 90094
Daniel Manwaring	officer: CEO, IMAX China Holding, Inc.	IMAX CORPORATION, 902 BROADWAY, FLOOR 20, NEW YORK NY 10010
Mark Welton	officer: Executive Vice President	2525 SPEAKMAN DRIVE, C/O IMAX CORP, MISSISSAUGA A6 L5K 1B1
Gail Berman	director	902 BROADWAY, FLOOR 20, NEW YORK NY 10010
Elizabeth Gitajn	officer: SVP, Finance & Controller	2525 SPEAKMAN DRIVE, MISSISSAUGA, ONTARIO Z4 L5K 1B1
Jennifer L. Wong	director	C/O TIME INC., 225 LIBERTY STREET, NEW YORK NY 10281
Michele Golden	officer: Global Chief People Officer	902 BROADWAY, FLOOR 20, NEW YORK NY 10010
Natasha Fernandes	officer: Chief Financial Officer	2525 SPEAKMAN DRIVE, MISSISSAUGA A6 L5K1B1
Jacqueline Bassani	officer: Chief People Officer	2525 SPEAKMAN DRIVE, MISSISSAUGA A6 L5K1B1
Robert D Lister	officer: Exec VP Bus&Legal Affairs	902 BROADWAY, 20TH FLOOR, C/O IMAX CORP, NEW YORK NY 10022
Steve Pamon	director	1241 E MAIN ST, STAMFORD CT 06902-3520
Megan Colligan	officer: President IMAX Entertainment	12582 WEST MILLENNNIUM DRIVE, LOS ANGELES CA 90094