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IHS Markit Interest Coverage

: 5.80 (As of Aug. 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. IHS Markit's Operating Income for the three months ended in Aug. 2021 was $318 Mil. IHS Markit's Interest Expense for the three months ended in Aug. 2021 was $-55 Mil. IHS Markit's interest coverage for the quarter that ended in Aug. 2021 was 5.80. The higher the ratio, the stronger the company's financial strength is.

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

NYSE:INFO' s Interest Coverage Range Over the Past 10 Years
Min: 3.45   Med: 4.81   Max: 16.02
Current: 5.14

3.45
16.02

NYSE:INFO's Interest Coverage is ranked lower than
74% of the 747 Companies
in the Business Services industry.

( Industry Median: 15.74 vs. NYSE:INFO: 5.14 )

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


IHS Markit Interest Coverage Historical Data

The historical data trend for IHS Markit'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.

IHS Markit Annual Data
Trend Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.72 4.17 3.45 4.20 5.73

IHS Markit Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 4.89 4.62 4.46 5.71 5.80

Competitive Comparison

For the Consulting Services subindustry, IHS Markit'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.

   

IHS Markit Interest Coverage Distribution

For the Business Services industry and Industrials sector, IHS Markit's Interest Coverage distribution charts can be found below:

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



IHS Markit 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.

IHS Markit's Interest Coverage for the fiscal year that ended in Nov. 2020 is calculated as

Here, for the fiscal year that ended in Nov. 2020, IHS Markit's Interest Expense was $-237 Mil. Its Operating Income was $1,357 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,939 Mil.

Interest Coverage=-1* Operating Income (A: Nov. 2020 )/Interest Expense (A: Nov. 2020 )
=-1*1356.9/-236.6
=5.73

IHS Markit's Interest Coverage for the quarter that ended in Aug. 2021 is calculated as

Here, for the three months ended in Aug. 2021, IHS Markit's Interest Expense was $-55 Mil. Its Operating Income was $318 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,913 Mil.

Interest Coverage=-1* Operating Income (Q: Aug. 2021 )/Interest Expense (Q: Aug. 2021 )
=-1*317.7/-54.8
=5.80

* 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.


IHS Markit  (NYSE:INFO) 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 .


IHS Markit Interest Coverage Related Terms

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


IHS Markit Business Description

IHS Markit logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit Headlines

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