IHS Markit (IHS Markit) Interest Coverage : 15.35 (As of Nov. 2021)

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What is IHS Markit 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. IHS Markit's Operating Income for the three months ended in Nov. 2021 was $837 Mil. IHS Markit's Interest Expense for the three months ended in Nov. 2021 was $-55 Mil. IHS Markit's interest coverage for the quarter that ended in Nov. 2021 was 15.35. 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:

INFO' s Interest Coverage Range Over the Past 10 Years
Min: 3.45 Med: 4.81 Max: 11.1
Current: 7.8

INFO's Interest Coverage is not ranked
in the Business Services industry.
Industry Median: 13.44 vs INFO: 7.80

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.

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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IHS Markit Interest Coverage Chart

IHS Markit Annual Data

Trend

Nov12

Nov13

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Interest Coverage

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4.17

3.45

4.20

5.73

7.80

IHS Markit Quarterly Data
	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21
Interest Coverage	Get a 7-Day Free Trial															4.62	4.46	5.71	5.80	15.35

Competitive Comparison of IHS Markit's Interest Coverage

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's Interest Coverage Distribution in the Business Services Industry

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 ⁽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.

IHS Markit's Interest Coverage for the fiscal year that ended in Nov. 2021 is calculated as

Here, for the fiscal year that ended in Nov. 2021, IHS Markit's Interest Expense was $-220 Mil. Its Operating Income was $1,719 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,155 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Nov. 2021 )	/	Interest Expense (A: Nov. 2021 )
	=	-1	*	1718.6	/	-220.2
	=	7.80

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

Here, for the three months ended in Nov. 2021, IHS Markit's Interest Expense was $-55 Mil. Its Operating Income was $837 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,155 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Nov. 2021 )	/	Interest Expense (Q: Nov. 2021 )
	=	-1	*	836.8	/	-54.5
	=	15.35

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 (IHS Markit) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » IHS Markit Ltd (NYSE:INFO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY

Website

https://www.ihsmarkit.com

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.